Skip Nav

law of contract-offer and acceptance

How to cite this page

❶The plaintiff did the checks over the truck and proceeded to effect repairs. The court however distinguished an option made in a case sale.

Learn more

Found what you're looking for?
Not what you're looking for?

F wrote a letter to M in the following terms: M replied and said: In that letter on the referred F to his lawyer with reference to the terms of the contract. On behalf of the defendant M which the plaintiff had refused to accept. There is a distinction between a firm offer and invitation to treat or negotiation. A firm offer is the one which is unconditional and unqualified, it states all the terms and the material facts on which the offer is based.

It must become a contract upon an acceptance of the offer as it stands. In the case of Crawley v Rex TS state that the complainant, a shop keeper had advertised a sale of a particular brand of tobacco at a very cheap price in order that he might attract the custom of a large number of the public. He put a placard outside his shop on which the price was shown, the Appellant entered the shop, bought the tobacco and went away.

After some minutes he came back again asked for another pound of the same tobacco, unfortunately the complainant declined to serve the Appellant with the tobacco and told him to leave his shop, the Appellant refused to leave the shop whereupon he was arrested for trespass.

The Appellant had argued that he had a contract of sale with the complainant but the court thought otherwise and held that there was no contract between the parties. It emphasized that the mere fact that a tradesman advertises the price of the goods he sells does not mean offer to any member of the public. It does not mean the right to enter the shop and purchase at the displayed price. The court also held in the case that: A contract is not constituted when any member of the public comes in and tenders the price mentioned in the advertisement.

In summary therefore display of goods at a certain price is not a firm offer but only an invitation to treat. On the contrary, it is the customer who makes the firm offer by presenting goods at the till and when the shop owner accepts the offer to buy, a contract then comes into being. Where the company inserted an advertisement in the newspaper offering to pay pounds to anyone who contracts the increasing epidemic of influenza or any disease caused by taking cold after having used their smoke balls 3 times daily for two weeks according to the printed directions supplied on each ball the advertisement went on to say that pounds had been deposited with the certain bank showing its commitment in the matter.

During the last epidemic of influenza many thousands carbolic smoke balls were sold as preventives against the disease but in no ascertained case was the disease contracted by those using the smoke balls.

In point of law the advertisement in this case was an offer to pay pounds to any member of the public who would have performed at those conditions set out in the newspaper. Performance of those conditions was held to constitute acceptance of the offer. The court held further and the offer was a continuing offer which was not important. An offer maybe addressed to a particular person, to a group of persons or to the world at large depending on its terms.

Firstly an offer can be terminated by rejection by the offeree. It can lapse on the expiration of fixed period within which it was meant to be accepted. If there is no such fixed period within which an offer should be accepted an offer lapse after the expiry of some reasonable time.

An OPTIO is an offer coupled with a stipulated period of time during which the offeror is not free to revoke it. When an option A make an offer to B and gives a stipulated time within which he must accept to it A also is not allowed to make the same offer to C within the same. An ordinary revocable offer can simply be terminated by the offer by revocation but before it has been accepted the revocation must be communicated with the offeree.

Lastly an offer is also terminated by death of the offeror. Who can accept an offer? The land was owned by Richard Curle Ltd but by Snoxell who indicated to Richard Curle in writing that he accepted the offer. Richard Curle Ltd thereupon notified Blew that the owner of the land had accepted his offer. When Snowxell later sued Blew for damages for alleged breach of contract Blew excepted to the summons on the ground that there was no valid agreement between him and Snoxell.

Whatever the subject matter of the contract maybe: That being the case, there was no contract on which the plaintiff was entitled to come to court as the offer was never made to him. The offer was accordingly not to open for acceptance by Sumerville and another but could be accepted by Sumerville alone. The intention of the parties runs through the whole acceptance of contract, parties are bound to what they agreed and they are bound because they agreed intentionally and voluntarily.

When an option is to sell for cash the offeree may cede that option to the third party because the optional holder has a contractual right which is regarded as property. In this regard i. It does not make a difference to the offeror whether A is B, C or D who pays the cash. If the offeror gives credit to the offeree then that option may not be ceded. The giving of credit involves an element of direct personal dealing.

When Hersh accepted the offer Nel refused to sell the farms. When sued, the rule made in the case of Blue v Snoxell was applied i. The court however distinguished an option made in a case sale.

The sale of the two farms was on a cash transaction thus in accordance with the principles outlined above the court ruled and the cession to Hersh was valid and his accepted gave him a contract with Nel. The acceptance of an offer must result in a binding contract and not further negotiations. A counter offer is not a valid acceptance A counter offer is where the offeree instead of unconditionally accepting the offer makes his or her own offer to the offferor. It is therefore indefinite that Robert received the email with the offer to purchase the champagne.

Nevertheless, on receiving the email Robert immediately wrote a letter of acceptance, as the saw in Holwell Securities Ltd V Hughes , the offeror can stipulate that the acceptance must to be made in a particular way. He or She may require it to be sent to in certain, or particular form, such as by letter or fax. Therefore, Robert was in all rights to reply in any way he saw fit.

The Letter being sent would be applicable by Adams v Lindsell this case relates to Roberts situation as again the defendants did not address the letter correctly, and as a result it did not reach the claimants.

The court held in Adam v Lindsell that a contract was concluded as soon as the acceptance was posted. Businesses can generally be expected to check their email and answer machine messages each office day. So for example if a message of acceptance was left at 7pm on a Saturday the acceptance would be valid when the office opens for business at 9am on the Monday.

The receipt of a contractual notice should be deemed to occur at the start of the next working day if it is received and stored outside normal hours, the authority for this was Tenax Steamship Co v Owners of the Motor Vessel Brimnes ; the judgement of Megaw LJ said at HA stated: The next relevant communication is on the Tuesday when Barry was offered??

Cyril and Barry had a legally binding contract, there is an agreement between both parties and therefore, offer and acceptance is complete. As a general rule, an offer can be revoked at any time before it is accepted.

The fact of the matter is, the withdrawal of an offer can take place at any time up until it is accepted, this was established in the case of Payne v Cave The offeror must however notify the offeree that it is being revoked.

One of the cases that established this was Partridge v Crittenden. Because there was a limited supply, it was judged that the advertisement was merely an invitation to treat, as if it had have been an offer, then it would have had to have been a unilateral, which would have been impossible with only a limited supply.

Partridge v Crittenden [] 1 WLR However there are also cases where advertisements can be offers. In the case of Carlill v Carbolic smoke Ball Company it was decided that, because the advertisement did not have a limited supply, stated that it was an offer and displayed genuineness, that the advertisement was in fact an offer.

This was a unilateral offer as it was made to the world at large. Acceptance can only occur after an offer is made.

Treitel defines the term acceptance as: The normal rule for the acceptance of an offer is communication. However there can be exceptions to this rule. For instance the conduct or actions of the parties may amount to acceptance of an offer. This can be found in Brogden v Metropolitan Railway Company.

Brogden v Metropolitan Railway Company —77 L. Another case where contact arises from conduct, is where a man leaves his job, on the terms previously written, by quitting, even though he did not communicate acceptance to the terms, his acceptance came from the action of him quitting, Lattimore v Mott [] All ER D The terms offer and acceptance.

Main Topics

Privacy Policy

Offer and acceptance contract law essay Advice Austin of his legal position and what remedies, if any, are. Offer and Acceptance is a traditional approach in contract law which is used to determine when an agreement exists between two parties.

Privacy FAQs

An acceptance is a final and unqualified acceptance of the terms of an offer. Unless it can be shown that there was such an acceptance, then there is no contract. Where the offeror sets out his offer and request an answer of yes or no from the offeree, it is not difficult to determine whether or not there has been an acceptance.

About Our Ads

This essay has been submitted by a law student. This is not an example of the work written by our professional essay writers. Example Answers to Questions on Offer and Acceptance. 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.

Cookie Info

Offer and Acceptance in the Courts Essays Words | 5 Pages. Offer and Acceptance in the Courts In dealing with problems of offer and acceptance, the Courts have taken a strict approach, stating that there must be clear offer and acceptance in order to create a binding contract. Free Essay: Offer and Acceptance Phases of a Contract Bob owns a stamp shop in Muncaster High Street. On Monday he places an item in the advertisement column.