Video Notes – Offers, Requests for Information, and Invitations to Treat

Vocabulary flashcards covering key terms, concepts, and cases from the lecture notes on offers, invitations to treat, adverts, auctions, and tender processes.

Offer

A communication where the offeror promises to do or not do something if the offeree accepts in a stated way, indicating the offeree’s acceptance will create a binding contract.

Acceptance

The offeree’s affirmative response to an offer that creates a binding contract.

Request for information / statements of possible terms

Inquiries about price or terms; not usually offers unless circumstances show binding intention.

Invitation to treat

A communication intended to initiate negotiations; not capable of immediate acceptance; acceptance comes from the party who made the invitation.

Unilateral contract

An agreement formed by performance in response to an offer; acceptance occurs when the requested act is completed (e.g., reward adverts).

Bilateral contract

An agreement formed by mutual promises; acceptance is a promise.

Advertisement (unilateral vs bilateral)

Ads aiming at a unilateral contract may be offers; ads aiming at bilateral contracts are usually invitations to treat.

Bait advertising

Prohibited Australian Consumer Law s 35(1): advertising goods/services at a stated price when supply at that price is unlikely.

Display of goods in shop window (invitation to treat)

Typically an invitation to treat; sale occurs when the seller accepts at checkout (Boots case context).

Display of goods on shelves (self-service)

Usually treated as an invitation to treat; customer takes goods to checkout to form the contract.

Harvey v Facey

Price quotes are not offers; a response indicating willingness to negotiate binding depends on explicit intention to be bound.

Carlill v Carbolic Smoke Ball Co

A reward advertisement can be an offer to the world; performance constitutes acceptance and formation of a contract.

Grainger v Gough

General advertising for sale is typically an invitation to treat, not an offer.

Lefkowitz v Great Minneapolis Surplus Store

Clear, definite advertisement limited to specific goods and conditions can be an offer; no negotiation left.

Limited-quantity advertising (specific goods)

Advertising limited to a specified number of goods may be an offer if it is clear, definite, and leaves nothing for negotiation.

Deakin University tender process

Calls for tenders are usually invitations to treat, but may be offers if directed at specific tenderers or impose obligations.

Electronic Transactions Act 1999 s 15B(1) (Cth)

Electronic proposals not addressed to specific parties are invitations to make offers unless intended to be binding.

Auctions (general rule)

Typically invitations to treat; each bid is an offer; the auctioneer can accept or reject on the vendor’s behalf.

Goods Act 1958 (Vic) s 64(b)

Sale by auction is complete when the hammer falls; before that, bids may be withdrawn.

Online auctions with reserve price

If reserve is disclosed, bids at or above the reserve may form a contract with the highest bidder.

Face-to-face auctions with reserve price

Auctioneer can accept/reject bids once reserve is reached; not obliged to sell to the highest bidder.

Auctions without reserve (without reserve)

In Victoria, unclear; some authorities treat as offers to sell to highest bidder, others as invitations to treat.

Harvela Investments Ltd v Royal Trust Co of Canada

Vendor’s promise to accept the highest bid among specified bidders converts an invitation to an offer.

Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council

Council’s selective tender invitation held to be an offer.

Boots case (Pharmaceutical Society v Boots)

Display of goods in a self-service store is generally an invitation to treat; sale occurs at checkout.

Warlow v Harrison

An English case relating to auction without reserve principles (contextual importance for auctions).