Preview

With case examples, explain what is meant by the terms offer and acceptance, in reference to English Law.

Good Essays
Open Document
Open Document
773 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
With case examples, explain what is meant by the terms offer and acceptance, in reference to English Law.
With case examples, explain what is meant by the terms offer and acceptance, in reference to English Law.

1. The terms offer and acceptance are terms most commonly found in contact law. An offer makes up the first part of a contract, it is imperative that the offer is definite. The term offer is defined by Treitel as: '...an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the person to whom it is addressed…' (Treitel 1999 P8)
2. Offers must be definite, in able to be accepted. 'I…am prepared to offer you…my Lytham estate for £600,000…I also agree that a reasonable and sufficient time shall be granted to you for the examination and consideration of all the data and details necessary for the preparation of the schedule of completion.' (Clifton v Palumbo [1944] 2 All ER 497). This case is an example of where there was no definite offer. It was held that this letter could not amount to an offer but was instead an invitation to treat to allow proceedings to occur and give a statement of the price. This was due to the fact that the wording was not clear and suggested that a further contract would be made.
3. There is a difference between offers and invitations to treat. An example of an invitation to treat is an auction sale. This is because 'an auctioneer can withdraw a lot before the fall of the hammer.' Payne v Cave (1789) 3 TR 148. It was decided that the auctioneer merely makes an invitation to treat. Bidders then make offers which at any point before the fall of the hammer, an auctioneer can chose to decline or accept. Shop displays are also not offers. They are also invitations to treat, which invites customers to make an offer to the shopkeeper, whom he can then chose to accept. '...the displaying of the knife in the shop window was merely an invitation to treat and the shopkeeper had not thereby offered the knife for sale...'Fisher v Bell

You May Also Find These Documents Helpful

  • Good Essays

    Contracts Practice Exam

    • 1173 Words
    • 5 Pages

    An offer is an outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms that are communicated to the offeree.…

    • 1173 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Assignment 1 answer

    • 957 Words
    • 3 Pages

    An offer is a proposal plus intent. The offer must have clarity on the parties, the object and the exchange. The facts tells us…

    • 957 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Offer and acceptance is one the main 7 essentials to create a legally binding contract since a contract is based on agreement. It is also an essential for a court to arbitrate problems. An offer is a manifestation (orally, in writing, or by conduct) of willingness to enter into bargain, which justifies another person’s understanding of assent to that bargain is invited and will conclude the transaction. An Offeror is the party who makes the offer. An offeree is the party who receives the offer and is asked to accept it and thus form a contract. An offer can be either bilateral (made to a specific person(s)) or unilateral form (made to the whole world). (Frey & Frey, 2001)…

    • 998 Words
    • 4 Pages
    Good Essays
  • Better Essays

    An advertisement may be considered an offer if it is clear, precise, definite and leaves nothing open for negotiation. This was established by Leftkowitz v Great Minneapolis Surplus Store involving a case of the sale of two mink scarves and a stole. The phrase “ £10,000 for the lot, no offers” could be an element of an offer, indicating that price is not negotiable. It can also be interpreted in such that the bags are sold in a lot therefore, a customer cannot request for a particular bag. As such, this arrangement satisfies the characteristics of an offer. That being said, a customer either accepts the offer or refrain from the entire transaction itself. However, the court should not disregard the possibility that the advertisement may only tantamount to an invitation to treat. The precedent whereby advertisements are considered an invitation to treat was established following the case of Partridge v Crittenden. If Celia’s advertisement was an offer, she would be contractually obliged to sell her goods to every customer even if there is no continuity of stock. Hence, she is liable for breach of contract if there were more acceptances than she can satisfy as only 5 handbags are up for sale. Furthermore, the advertisement does not include further details on the bags and leaves room for negotiation. It states that it is suitable for all tastes and occasion. However, Celia cannot assume her customer’s preferences in terms of colour, manufactured material, strap length and so on. It could be that the advertisement is merely an invitation to treat. Having said that, it is important to bear in mind the factors which sets an offer apart from invitation to treat. When an offer is accepted, a binding agreement…

    • 1019 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Postal Rule

    • 1400 Words
    • 6 Pages

    To form a contract, it usually requires offer and acceptance. Acceptance is an expression by words or conduct of assent to the terms of the offer. It shall be clear, unequivocal and unconditional as prescribed by the offeror. It is a moment when contract exist (that there is consensus ad idem). The general rule of acceptance is been stated in the case of Entores Ltd v Miles Far East Corporation, Lord Denning claims that an acceptance does not usually valid until it is reached to the knowledge of the offeror. This principal also applies to others modes of communications which are (a) Instantaneous means of communication, (b) Postal rule and (c) Others mode of communication.…

    • 1400 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Cotract Law

    • 280 Words
    • 2 Pages

    An offer: an expression of willingness to contract on a specific set of terms, made by the offer or with the intention that, if the offer is accepted, he or she will be bound by a contract.…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    OFFER

    • 806 Words
    • 4 Pages

    An offer may be defined as a statement of willingness to contract on specified terms made with the intention that, if accepted, it shall become binding contract. An offer may be express or implied from conduct. It may be addressed to particular person, a group of persons, or the world at large. A genuine offer must be distinguished from an “invitation to treat”; i.e. where a party is merely inviting offers, which it then free to accept or reject.…

    • 806 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Laws Affecting Business

    • 7684 Words
    • 31 Pages

    1. Offer and Acceptance: There must be a lawful offer by one party and a lawful acceptance of the offer by other party or parties. An ''offer'' involves the making of a ''proposal''. When the person to whom the proposal is made signifies is assent thereto, the proposal is said to be accepted. 2.…

    • 7684 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    Legally-Binding Contract

    • 960 Words
    • 4 Pages

    In general, a legally binding contract is an agreement made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. Negotiating an agreement in the form of an offer and an unqualified acceptance of that offer is one of the prerequisites for the contracting parties to form a valid legally-binding contract, in that an offer is defined as an expression of a willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, and that an acceptance is defined as the positive, unqualified assent to all the terms of the offer. An offer, on one hand, may be communicated to an individual or to a class of persons or to the whole world at large, Carlill v Carbolic Smoke Ball Co [1893], and it may be made expressly or by conduct, whereas an acceptance, on the other, must be final, unconditional and communicated to the offeror, either orally, in writing or inferred from conduct.…

    • 960 Words
    • 4 Pages
    Good Essays
  • Good Essays

    law of contract

    • 3836 Words
    • 16 Pages

    An offer can be oral or written as long as it is not required to be written by law. It is the definite expression or an overt action which begins the contract. It is simply what is offered to another for the return of that person's promise to act. It cannot be ambiguous or unclear. It must be spelled out in terms that are specific and certain, such as the identity and nature of the object which is being offered and under what conditions and/ or terms it is offered.…

    • 3836 Words
    • 16 Pages
    Good Essays
  • Powerful Essays

    Offer and Acceptance: The existence of an offer and an acceptance are a process of dissect the procedure of arrangement to decide whether an agreement has been created. Common consent of the parties is necessary of an agreement. Without an agreement, contract is impossible.…

    • 2523 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Andy Vs. Bill Case Study

    • 912 Words
    • 4 Pages

    The argument here to be discuss is whether there is a valid offer and acceptance to satisfy the conditions of a lawful contract. Invitation can be made in person or in public. In case of Andy vs. Bill, Andy makes an invitation to offer in the form of advertisement which can be accepted by any party…

    • 912 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Law Assignment

    • 1007 Words
    • 5 Pages

    The offer should be distinguished from an invitation to offer. An offer is the final expression of willingness by…

    • 1007 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Contracts in Business

    • 2898 Words
    • 12 Pages

    On the 10th of September an offer was distinguished between Huddersford Electronics Ltd (HE ltd) and Gem Computer Stores (GCS). The offer was an invitation to treat as there is an entitlement that an offer could accepted and therefore, a contract could be formed. An offer is formed as HE ltd posted an offer to sell 10 laptops to GCS, keeping the offer open until the 24th September. A statement is made by HE ltd who is giving information to GCS expressing an intention to sell something in the future. For example, in Harvey v Facey, there was an offer agreeing to buy the pen for £900. This was because information was requested and sent. However, there was no acceptance. Similarly, GCS has just received information, but have yet not agreed to accept the offer. Furthermore, in this case an offer is distinguished from a mere puff as a statement is made by its nature which is yet not intended to have legal relations. Moreover, the case of Partridge v Crittenden illustrates that there was an invitation to treat to induce an offer which hereby made party b make an offer. In relation, HE Ltd have advertised and induced an offer to GCS to make an offer.…

    • 2898 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    Business Law

    • 2605 Words
    • 11 Pages

    In the general purpose, to reach the agreement can often be described or analysed as ‘offer’ and ‘acceptance’. According to Lambiris (2012, 41) an offer is referred to a clear indication of the terms upon which a person is prepared to be bound. While acceptance referred assenting to, agreeing, receiving the terms offered. There are two parties in an offer. Offeror is person who makes an offer and offeree is person who receives the offer ( Curtin College 2013)…

    • 2605 Words
    • 11 Pages
    Powerful Essays