Agreement
Offer
Elements-
- Statement by offereor containing stated terms
- Statement made to another person
- Offeror indicates a preparedness to be bound
Bilateral or Unilateral
Offers to public at large (Carlill v Carbolic Smoke Balls)
What is not an offer
- Mere puff (Carbolic)
- Supply of information (Harvey v Facey)
- Invitation to treat. Advertisements, catalogue and websites pricing. Concern about stock by retailers.
Standing offers – A agrees to tender for 12 months. Offer is accepted by a each month.
Offer must be communicated (Cole v Cottingham) , the communication must be by the offeror or by someone authorised by the offerer(ibid)
Termination of Offer
- Can be withdrawn anytime before accepted (Goldsbrough Mort), this is even so the offeror has promised to keep the offer open for a period of time. If the offeree has provided consideration to the offeror to keep the offer open, the position is different.
- If offeree rejects the offer it is terminated and cannot be reopened. Stevenson Jaques & Co v Mclean
Acceptance
Offeree must accept terms of offer
Acceptance must be unqualified – “Subject to formal contract” clause would not make parties bound if their intention is not to have legal relationship until the formal contract. However, if they have intention they will still be bound.
Acceptance must be communicated to offeror
Postal Acceptance Rule – Henthhorn v Fraser. Only available when post is one of the accepted method of acceptance.
Acceptance in unilateral contract
Offer can only be accepted by whom it is made to = Reynolds v Atherton
Certainty and Completeness
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