Lecture notes
Contract law Contract formation
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- City University (City)
Lecture notes of 1 pages for the course at City (,)
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L2 ~ CONTRACT FORMATIONTuesday, October 12, 2021 12:25
Offer or invitation to treat:
-Definition: To amount to an offer, the offeror must make
a clear, unequivocal statement that she will regard herself as legally bound to
perform her promise if the other party accepts her offer.
-No requirement for a particular form- could be oral or in writing.
-Distinguish offers from “invitation to treat” (steps in the pre-contractual
process; negotiating steps).
-It will not always be easy to tell the difference, as the cases show.
-Intention is key
-An offer has to be clear and unequivocal
-Harvey v Facey 1893
-Harvey sent a Telegram to Facey which stated: -
“Will you sell us Bumper Hall Pen? Telegraph lowest cash price-
answer paid;”
-Facey replied by telegram:-
“Lowest price for Bumper Hall Pen £900.”
-interests in negotiations here more than making an offer.
Negotiating doesn’t necessarily mean an offer has been made and
therefore no contract was made
-Privy Council: communication was only an expression of
willingness to negotiate, not a binding commitment.
-It was only a demonstration of potential interest to sell at some
point.
-There was no intention to be legally bound merely in responding to
a request for further information
Gibson v Manchester City Council (1978) (HL)
-Specific performance sought by claimants
-Lord Denning in the Court of Appeal: Contract made
-House of Lords: No binding contract because no offer capable of
acceptance had been made
-Equivocal language: ‘may be prepared to sell’ and ‘prepared to make a
formal application to buy’
-Statements were merely Invitations to Treat not offers capable of being
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