3. Offer and Acceptance

3. Offer and Acceptance

1. What is an offer?

   • General
     • Art. 2:201 (1) PECL
     • Intention to be legally bound
       • Gibson v Manchester City Council (1979) 
     • Sufficiently definite terms
       • Art. 1583 CC Art. 6:227 BW
   • Advertisement
     • Also for websites
     • FR & NL: Binding offer
       • FR: Maltzkorn v Braquet (1969) NL: Hofland v Hennis (1981) -> Exception intuitu personae  Until stock is finished (Art. 2:201 (3) PECL Stichting Postwanorde v Otto BV (2008) -> offer was made but no reasonable reliance. 
     • ENG & GER: Mere invitation to treat
       • ENG: Partridge v Crittenden (1968) Sometimes regarded as a unilateral contract (Thornton v Shoe Lane Parking 1971 / Carbolic Smoke Ball 1893) GER: Reward is placed outside contract law. 
   • Goods on display
     • FR & NL: Binding offer
     • ENG & GER: Mere invitation to treat

2. Can an offer be revoked?

   • Withdrawal always possible (Art. 3:37 (5) BW) (§130 (1) BGB) (Art. 1:303 (5) PECL) 
   • GER: No
     • §145 BGB (reasonable period)
   • ENG: Always
     • Because of consideration doctrine. Even if fixed term for acceptance given
   • FR: Always (but liable in tort)
     • Both fixed time and reasonable time (Art. 1382)
   • NL & PECL: Sometimes
     • Art. 6:219 BW (X) & Art. 2:202 PECL

3. How long does the offer last?

   • The offer is rejected
     • PECL Art. 2:203 Counter-offer terminates offer (Hyde v Wrench 1840) 
   • The time for acceptance expires
     • §§146-148 BGB reflect every jurisdiction (Art. 2:206 PECL)

4. What are the acceptance's requirements?

   • Principle of informality
     • Article 2:204 PECL (every jurisdiction) Tinn v Hoffmann (1873) Yates Building Co Ltd v R.J. Pulleys & Sons (1975) 
   • Silence?
     • No (art. 2:204 (2) PECL Exceptions: - Silence circonstancié (FR & GER)
   • Acceptance by conduct
     • Example: step inside taxi

5. What is the time of conclusion of the contract?

   • Instantaneous communication
     • ENG: Receipt theory
       • Entores Ltd v Miles Far East Corporation (1955)
   • Non-Instantaneous communication
     • NL & GER: Receipt theory
       • §130 (1) BGB Art. 3:37 (3) BW Art. 2:205 (1) PECL 
     • FR: Discretion lower courts
       • In practice receipt theory
     • ENG: Expedition/dispatch theory
       • Postal rule (Adams v Lindsell 1818) (Byrne & Co v Leon van Tienhoven & Co 1880)