Offer

Properties of an Offer

  • Clarity: Must be clear and precise.

  • Capability of Acceptance: Must be capable of acceptance in its current form.

  • Communication: The offer must be communicated to the offeree.

Distinction Between Offer and Invitation to Treat

An offer must be definite in its terms. If not, it may be considered an invitation to treat (ITT). Words like “might be prepared to” indicate uncertainty and are not definite.

Gibson v Manchester City Council

  • Facts: The council wrote to Mr. Gibson stating: “The corporation may be prepared to sell the house to you....” When Gibson applied, the council refused.

  • Principle: This statement was held to be an ITT, not an offer.

Generally, advertisements are not offers but are invitations to treat.

Key Case: Partridge v Crittenden (1968)

  • Facts: D placed an ad stating ‘Bramblefinch’ cocks for sale at £1.25 each.

  • Principle: D was not guilty as it was ruled that the ad was an ITT, allowing interested persons to make an offer.

Key Case: Carlill v Carbolic Smoke Ball Co (1893)

  • Facts: The ad stated that using their product would result in a £100 reward if one still caught the flu.

  • Principle: The court ruled the advertisement as a unilateral offer which could be accepted by anyone who met the conditions.

Invitation To Treat

  • Goods in Shop Windows: Generally treated as ITT (Fisher v Bell).

  • Goods on Display: In Pharmaceutical Society of GB v Boots, the goods on shelves were considered ITT.

  • Auctions: Bidders make offers that auctioneers accept by banging a hammer (British Car Auctions v Wright).

  • Requests for Information: A reply is not an offer (Harvey v Facey).

Advertisements and ITT

Generally, advertisements are not offers but are invitations to treat.

Key Case: Partridge v Crittenden (1968)

  • Facts: D placed an ad stating ‘Bramblefinch’ cocks for sale at £1.25 each.

  • Principle: D was not guilty as it was ruled that the ad was an ITT, allowing interested persons to make an offer.

Key Case: Carlill v Carbolic Smoke Ball Co (1893)

  • Facts: The ad stated that using their product would result in a £100 reward if one still caught the flu.

  • Principle: The court ruled the advertisement as a unilateral offer which could be accepted by anyone who met the conditions.

  • Goods in Shop Windows: Generally treated as ITT (Fisher v Bell).

  • Goods on Display: In Pharmaceutical Society of GB v Boots, the goods on shelves were considered ITT.

  • Auctions: Bidders make offers that auctioneers accept by banging a hammer (British Car Auctions v Wright).

  • Requests for Information: A reply is not an offer (Harvey v Facey).

How an Offer..

  • Offers must first be effectively communicated to form a contract (Taylor v Laird).

  • An offer can only be accepted while it is open; it can expire after a set time or a reasonable time (Stevenson v McLean).

  • terms must be clear. Any ambiguity may lead to disputes regarding the agreement

The Life of an Offer

  1. Specific Time Given: Expires if not accepted by specified time.

  2. Accepted Within a Reasonable Time: The offer may lapse after a reasonable time.

  3. Failure of a Pre-condition: If pre-conditions fail, the offer will not be accepted.

  4. Rejection or Counter-offer: A rejection voids the original offer; a counter-offer creates a new offer (Hyde v Wrench (1840)).

  5. Death of Offeror: Offer lapses if the offeror dies, unless the offeree is unaware (Bradbury v Morgan (1862)).

  6. Withdrawal or Revocation: Can be revoked before acceptance (Dickinson v Dodds (1876)).

Ways Offers Can End

  1. Revocation: Offers can be revoked before acceptance (Routledge v Grant).

  2. Rejection: Once an offer is rejected, it can't be accepted later.

  3. Counter Offer: A counter offer rejects the original offer (Hyde v Wrench).

  4. Lapse of Time: Offers can lapse after a specified or reasonable time (Ramsgate Victoria Hotel v Montefiore).

  5. Death: If the offeror or offeree dies, it affects the offer's validity.

Further Points

  • An offer can be made to a named individual or to the world at large.

  • The nature of the product may influence what constitutes a reasonable time for an offer.

Key Case Summaries

  1. Fisher v Bell (1961)

    • Principle: Displaying an item is an invitation to treat, not an offer.

  2. Pharmaceutical Society of GB v Boots Cash Chemists (1953)

    • Principle: Display in a self-service store is an invitation to treat; contract formed at the till.

  3. Carlill v Carbolic Smoke Ball Co (1893)

    • Principle: Advertisement constituted a unilateral offer; acceptance by fulfilling the conditions of using the product.

  4. Partridge v Crittenden (1968)

    • Principle: An advertisement as an invitation to treat, not an offer under the Protection of Birds Act.

  5. Clifton v Palumbo (1944)

    • Principle: Legal status determines offers regardless of the parties' wording.

  6. British Car Auctions v Wright (1972)

    • Principle: The bid represents an offer and the auctioneer's gavel constitutes acceptance.