Week 2 - Offer1

Page 1: Introduction

University of Huddersfield's module BFL0082 focuses on the Law of Contract with an inspiring goal of creating global professionals. This is Lecture 2 focusing on offers and their legal implications in contract law.

Page 2: Reading List

Required Reading:

  • Chen-Wishart, Mindy: Contract Law (OUP 2018) – Chapter 2, section 2.2

  • Richards, Paul: Law of Contract (Pearson Education Limited 2019) – Chapter 2, sections 2.1.1 to 2.2.3

  • Poole, Jill: Casebook on Contract Law (OUP 2014) – Chapter 1 ‘Guidance on Reading Cases’

Additional Reading:

  • Stone, Richard & Devenney, James: The Modern Law of Contract (Routledge 2017) – Chapter 2, sections 2.7 to 2.10

Page 3: Outline of Key Topics

  • Introduction to Contract Law

  • Invitation to Treat (ITT)

  • Definition of an Offer

  • Differences between an Offer and ITT

  • Essential Elements of an Offer:

    • Certainty

    • Communication of the Offer

Page 4: Central Questions of the Module

  • Is a contract formed?

    • Conditions: Offer + Acceptance + Consideration + Intention to Create Legal Relations (ITCLR)

  • Is there a breach?

    • Examination of terms/obligations: Have they been performed?

  • Damages?

    • Consideration of legally cognizable/remediable harm

  • Will the court enforce the agreement?

Page 5: Definition of a Contract

A contract is fundamentally an agreement, often between two parties, that generates reciprocal obligations, recognized and enforceable by law.

Page 6: Parties to a Contract

  • Offeror: The party making the offer

  • Offeree: The party receiving the offer

  • The offeror conveys an offer to the offeree, and upon acceptance, a contractual relationship is formed.

Page 7: What Constitutes an Offer?

An offer is defined as an objective manifestation of intention by the offeror to be bound by specific terms upon acceptance by the offeree.

  • An offer includes:

    • A clear proposal of terms for exchange

    • An expression of willingness to be bound upon acceptance

  • Example offers:

    • "I will sell you this car for £5500 by cheque on Friday."

    • "I will repair your lawnmower for £60 plus any necessary parts."

Page 8: Offer vs. Invitation to Treat (ITT)

  • An ITT communicates a willingness to negotiate and does not represent a formal offer.

  • ITT indicates intent to negotiate rather than immediately enter into a contract upon acceptance.

  • The distinction lies in the intention to be bound:

    • An offer promises to be bound upon acceptance.

    • An ITT invites potential offers.

Page 9: ITT in Self-Service Displays

Case: Pharmaceutical Society of GB v Boots Cash Chemists (1953)

  • The Pharmacy and Poisons Act 1933 mandates certain drugs be sold under pharmacist supervision.

  • The court evaluated whether an offer was made when customers selected products or at the cash register.

  • Conclusion: The court ruled that displays are ITTs, and the customer makes an offer by presenting goods.

Page 10: ITT in Shop Window Displays

Case: Fisher v Bell (1960)

  • A shopkeeper displayed a price-marked flick knife in a window contrary to legislation.

  • The question of whether this constituted an offer arose.

  • Conclusion: The display is considered merely an ITT, not an offer.

Page 11: ITT in Auction Sales

General Rule

An auctioneer’s call for bids is an ITT, while bids made by prospective buyers are considered offers.

  • The acceptance is indicated by the fall of the hammer.

Case: Harris v Nickerson (1873)

  • The auctioneer's advertisement was ruled as an ITT, establishing that no promise existed for items listed for auction.

Page 12: ITT in E-commerce

  • E-commerce platforms often resemble physical stores.

  • Websites can sometimes amount to offers, e.g., unilateral offers in certain cases (as seen in Carlill v Carbolic Smoke Ball).

  • Regulation 12 of the E-Commerce Regulations suggest propositions made on websites are typically ITTs, with customer orders as offers.

Page 13: ITT in Advertisements

Case: Partridge v. Crittenden (1968)

  • Partridge advertised wild birds for sale and was charged with unlawful selling.

  • Court concluded the advertisement was merely an ITT, not an actionable offer, reflecting the decision in Fisher v Bell.

Page 14: Unilateral Offers

Case: Carlill v Carbolic Smoke Ball Co (1893)

  • A company's advertisement promised £100 to anyone who contracted influenza after using their product per instructions.

  • The plaintiff accepted by fulfilling the conditions and claimed the reward.

  • Court's Decision: The ad was perceived as a unilateral offer inviting acceptance through performance, establishing a binding contract.

Page 15: Summary of the Carbolic Smoke Ball

  • The case illustrates the difference between bilateral and unilateral contracts and the nature of contract formation involving performance versus mutual promises.

Page 16: Response to a Request for Information

Case: Harvey v Facey (1893)

  • Harvey inquired about the price for a property via telegram.

  • Facey’s response indicated a price but was ruled as an invitation for offers, not an official offer.

Page 17: Certainty of Terms

Case: Gibson v Manchester City Council (1979)

  • The council's non-committal correspondence about selling a house to Gibson indicated no binding offer had been made.

  • Conclusion: The court ruled that Gibson could not compel the council, indicating the importance of definitive terms in contract formation.

Page 18: Certainty of Terms in Contracts

Case: Loftus v Roberts (1902)

  • A vague salary arrangement regarding an actress's payment was found insufficient to establish a binding contract.

Page 19: Communication of Offers

Case: Taylor v Laird (1856)

  • A claimant’s resignation and subsequent actions led to a ruling that no contractual relationship had been formed due to lack of communication about the new role.

Page 20: Summary of ITT and Offers

  • Overview of key cases clarifying the distinction between displays and offers in various contexts, thereby illustrating fundamental principles of contract law.

Page 21: Conclusion

The University of Huddersfield continues to build global professionals with a focus on excellence in teaching and a strong foundation in contract law.