Summary
Summary Contract Notes
- Module
- Contract
- Institution
- University Of Law (London)
Summary of 59 pages for the course Contract at University of Law (London)
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UNIT 1, SUB-UNIT 1: AGREEMENT AND CONTRACTUAL INTENTION1. AGREEMENT (OFFER AND ACCEPTANCE)
An offer is an ‘expression of willingness to contract on certain terms, made with the intention
that it shall become binding as soon as it is accepted by the person to whom it is addressed’.
‘Intention’ does not necessarily mean the offerer’s actual intention. The courts adopt an
objective approach in determining whether there was an agreement - Smith v Hughes [1871].
Allied Marine Transport v Vale do Rio Doce Navegacao [1985] - Goff LJ stated that ‘if the offeror
so acts that his conduct, objectively considered, constitutes an offer, and the offeree, believing
that the conduct of the offeror represents his actual intention, accepts the offer, then a contract
will come into existence’.
2. OFFER OR INVITATION TO TREAT?
Simply inviting negotiations rather than making an offer to be contractually bound.
2.2 Self-Service and Shop Window Displays
Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] - Goods on display in
supermarkets and self-service shops are generally regarded as invitations to treat and not
offers.
Fisher v Bell [1961] - the display of an illegal pen-knife was found to be an invitation to treat as
opposed to an offer and so D was acquitted of breaching s 1(1) Restriction of Offensive
Weapons Act [1959].
2.3 Advertisements
Partridge v Crittenden [1968] - Advertisements are generally regarded as invitations to treat.
However, an advertisement for a reward has traditionally been treated as an offer. There is an
invitation to be bound as soon as the information is given - Williams v Carwardine [1833]. There
is policy reason for this approach. Treating information as the acceptance of the offer for
information encourages people with information to come forward.
However, if there are special circumstances which show an intention to be bound, an advert
other than a reward may amount to an offering. An offer can be made ‘to the world’ (a unilateral
offer) - Carlill v Carbolic Smoke Ball Co [1893].
2.4 Unilateral and Bilateral Contracts
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