Mind Map by elliothatt, updated more than 1 year ago
Created by elliothatt almost 6 years ago


University Contract Law Mind Map on Offer, created by elliothatt on 04/05/2014.

Resource summary

1 To form a contract must be 'consensus ad idem' (meeting of minds)
1.1 Most judges agree occurs when there has been offer and acceptance.
1.2 Objective test used to find this, looks at what parties said and did, not what they thought or intended. Reasonable man.
1.2.1 Smith v Hughes
1.2.2 Won't prevail when offeree knows or ought reasonably to have known that offerer didn't intend to make an offer, or an offer in those terms.
2 Expression of willingness to contract on specified terms without further negotiation, so that it requires only acceptance for a binding agreement to be formed.
3 May be expressed or implied.
4 To be an offer communication must be; specific enough to be capable of immediate acceptance; and made with the intention to be bound by acceptance.
5 Will not be an offer when it is an 'invitation to treat'.
5.1 All other statements made in course of negotiations; those not capable of immediate acceptance. Courts look at language during the correspondance to determine if offer or invitation to treat.
5.1.1 Gibson v Manchester City Council
5.1.2 Storer v Manchester City Council
5.2 Adverts, brochures & price lists
5.2.1 Makes business sense for these to be invitations to treat as otherwise an offerer may be unable to supply all those who reply. Grainger & Sons v Gough Partridge v Crittenden Exception being in unilateral adverts, assuming the language is sufficiently definite and nothing left open to negotiation. Carlill v Carbolic Smoke Ball Company
5.3 Shop displays
5.3.1 Invitation to treat to protect the shopkeeper's freedom of contract and to allow customers to change their minds after picking up an item. Pharmaceutical Society of GB v Boots Cash Chemists
5.4 Websites
5.4.1 Law unclear but it is generally thought website will only be an invitation to treat. Allows retailers to avoid contracts when; the person in an excluded jurisdiction; limited stock; pricing mistake etc. So acceptance comes from the retailer. A confirmation email may not constitute acceptance, the terms will indicate when.
5.5 Tenders/quotes
5.5.1 Request for tenders normally invitation to treat as the party may have criteria other than price that they wish to take into account. Spencer v Harding Two exceptions where a request is also an offer; express contractual promise to accept most competitive bid; contractual obligation to consider tenders that conform to the bid conditions. Harvela Investments v Royal Trust Co. of Canada Blackpool and Flyde Aero Club v Blackpool Borough Council
5.6 Auctions
5.6.1 Request for bids generally invitation to treat so a bid is an offer and acceptance is the fall of the hammer. Exception where there is no reserve. The promise of no reserve is unilateral offer which is accepted by the highest bidder. Warlow v Harrison
5.7 Automatic Machines
5.7.1 No room for bartering so display is offer and putting money in is acceptance. Thornton v Shoe Lane Parking
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