Offer and Invitation to Treat

Mind Map by , created almost 6 years ago

University Contract Law Mind Map on Offer and Invitation to Treat, created by chloe.crismani on 12/02/2013.

Created by chloe.crismani almost 6 years ago
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Offer and Invitation to Treat
1 What is an Offer?
1.1 An offer is an expression of willingness to enter into a legally binding agreement without further negotiation.
1.1.1 The communication in an offer must be: 1. Sufficiently specific in terms of the main obligations. capable of immediate acceptance. 3. Intended to be legally binding.
2 What is an Invitation to Treat
2.1 An invitation to treat is simply a wish to open up negotiations. The language used is important in distinguishing whether there is an offer or ITT. This is determined objectively and was established in the case Gibson v Manchester City Council [1979]
2.1.1 Self Service Displays. e.g. Pharmaceutical Society of G.B. v Boots [1953}. The display of goods on supermarket shelves was merely an invitation to customers to make an offer to buy.
2.1.2 Shop Window Displays.e.g. Fisher v Bell [1961]. A display of goods in a shop window with an attached price ticket is merely an invitation to treat not an offer for sale.
3 Auction Sales
3.1 Payne v Cave [1789]. Bids constitute offers which are accepted by the fall of the hammer.
3.1.1 S. 57 (2) of the Sale Of Goods Act 1979 codifies Payne v Cave.
3.2 2 Situations that require special consideration
3.2.1 1) Auction Sale 'Without Reserve'. Warlow v Harrison and obiter later confirmed In Barry v Heathcote Ball & Co ltd [2001].
3.2.2 2) 'Sealed Bid' Auction. Harvela Investments v Royal Trust of Canada [1986] Invitation to tender amounts to a unilateral offer- offer must be accepted to the submission of the highest bid.

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