Definitions, Case examples, explanations and legal outcomes of all of the essential requirements which create a contract:
- offer of a contract
- acceptance of a contract
- consideration of a contract
- privity of contract
- intention to create legal relations
Main Ideas Notes
Requirements of a - Offer
contract - Acceptance
- Consideration
- Intention to create legal relations
OFFER: a proposal showing a willingness to
Nature of an offer contract on firm and definite terms (Gibson v
(offer, offeror, Manchester City Council 1979)
offeree) OFFEROR: the person who makes the offer
OFFEREE: the person to whom the offer is made
Gibson v Manchester - Gibson was a council tenant
City Council (1979) - The council wrote to him “the corporation MAY
be prepared to sell the house to you” and
invited him to make an application
- The council refused to accept his application
OUTCOME: An offer is a “proposal or willingness
to contract on firm and definite terms”
Types of offers BILATERAL OFFER: where both parties have
obligations to perform
(Bilateral, Unilateral)
EXAMPLE: Warren offers to buy Andy’s hobnob
biscuits for £1
UNILATERAL OFFER: an agreement to pay in
exchange for performance, if the performer
chooses to act (though there is no obligation)
EXAMPLE: Warren agrees to pay Andy £50 if
Andy washes his Porsche before next Thursday
REWARDS ARE MOSTLY UNILATERAL OFFERS
INVITATION TO TREAT: an indication that one
Offer vs invitation to
person is willing to negotiate a contract, cut that
treat
he or she is not yet willing to make an offer (not
an offer, therefore it can’t be accepted)
, Invitation to treat Facts + Legal point
- cases –
ADVERTISEMENTS: Selling a bird
Partridge v
Crittenden (1968) OUTCOME: An advertisement is usually an
invitation to treat, not an offer
Company willing to pay £100 if someone got the
AN ADVERTISEMENT
flu after using the medicine.
CONTAINING AN
OFFER: Carlill v OUTCOME: Where there is a unilateral contract,
Carbolic Smokeball the advertisement may be an offer rather than
Co. (1893) an invitation to treat
GOODS IN A SHOP Shopkeeper displayed knife in the shop window
WINDOW: Fisher v OUTCOME: Invitation to treat, as the knife was
Bell (1961) on display
GOODS ON A Selling goods not under the supervision of a
SUPERMARKET pharmacist - self-service shop
SHELF:
OUTCOME: Invitation to treat
Pharmaceutical
Society of GB v
Boots Cash Chemists
(1953
GOODS AT AN
AUCTION: British Selling an unfit vehicle at an auction
Car Auctions v OUTCOME: Eash lot is an invitation to treat
Wright (1972)
REQUEST FOR INFO, Asked what lowest price of the farm was, the
AND REPLY TO THE reply was not an offer
REQUEST: Harvey v
Facey (1893) OUTCOME: Invitation to treat
, Main Ideas Notes
Who can make an THORTON V SHOE LANE PARKING (1971)
offer? (anyone) OUTLIINE:
- Mr Thorton put money into a machine and was
given a ticket at the entrance to a car park
- Offer made by the machine on behalf of the
company owning the car park
- Acceptance of the offer was made by putting
the money into the machine
LEGAL OUTCOME: An offer can be made by
anyone. Offers can also be made through a
notice or a machine.
Who can receive an
- To an individual (Gibson v Manchester City
offer?
Council 1979)
- To a group of people
- To the world at large (Carlill v Carbolic
Smokeball Co 1893)
Grant no longer wished to sell his house, so
HOW CAN AN OFFER Routledge can no longer accept the offer
END?
LEGAL OUTCOME: Revocation of an offer can be
1). REVOCATION: made at any time before acceptance
Routledge v Grant
(1828)
Dickinson v Dodds A reliable person told Dickinson that Dodds no
(1876) longer wanted to sell his house
LEGAL OUTCOME: Revocation of an offer can be
made at any time before acceptance, so long as
it is communicated to the offeree by the offeror
or a reliable third party.
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