Law 9084
Unit 4.1: Offer
Notes prepared by: Sonia Lee
Table of Contents
Page No.
1. Formation of Contract 1
2. Unilateral & Bilateral Contracts 1
3. Invitation To Treat 1-4
4. Offer 4
5. How Long Does A Offer Last? 4-5
6. Withdrawal of Offer 5-7
7. Special Types of Contracts 7-9
, Formation of Contract
• A contract is an agreement, enforceable by law, between two or more parties to do or to
abstain from doing an act & which intends to create legal relations.
• The parties must have given something of value as consideration in return for any benefit
derived from the agreement
• For a contract to exist, usually one party must have made an offer, & the other must have
accepted it.
• Once acceptance takes effect, a contract will usually be binding both parties, & the rules of
offer & acceptance are typically used to pinpoint when a series of negotiations has passed
that point, in order to decide whether the parties are obliged to fulfil their promises.
Unilateral & bilateral contracts
Bilateral
• This means that each party takes on an obligation, usually by promising the other
something.
Unilateral
• This means that only one party assumes an obligation.
• In Great Nothern Railway Co v Witham, to reward someone £100 to walk from London to
York.
Invitation to treat
• An offer must be distinguished from an invitation to treat.
• Invitation to treat: is an attempt to stimulate interest without any intention to be bound, it
is an invitation to make an offer.
• Hence, an acceptance of an invitation to treat is in fact an offer.
• Examples of invitation to treat:
A. Display good with price tag
B. Auctions
C. An invitation for tenders
D. Advertisements
E. Timetables and tickets for transport
• Gibson v Manchester City Council
o The HOL ruled that the Council has not made an offer; the letter giving purchase
price was merely one step in the negotiations for a contract & amounted to an
invitation to treat.
• Storer v Manchester City Council
o The court held that a there is a binding contract when Mr Storer signed the
Agreement & returned it.
Advertisements
• Advertisement for unilateral contracts
o Advertisements for unilateral contract are advertisements offering rewards such as
for returning of lost property, or for information of leading to the arrest or
conviction of a criminal.
o They are usually treated as offers, as the contract can normally be accepted without
any need for further negotiations between the parties, & the person making the
advertisement intends to be bound by it.
o Carlil v Carbolic Smoke Ball Co
Unit 4.1: Offer
Notes prepared by: Sonia Lee
Table of Contents
Page No.
1. Formation of Contract 1
2. Unilateral & Bilateral Contracts 1
3. Invitation To Treat 1-4
4. Offer 4
5. How Long Does A Offer Last? 4-5
6. Withdrawal of Offer 5-7
7. Special Types of Contracts 7-9
, Formation of Contract
• A contract is an agreement, enforceable by law, between two or more parties to do or to
abstain from doing an act & which intends to create legal relations.
• The parties must have given something of value as consideration in return for any benefit
derived from the agreement
• For a contract to exist, usually one party must have made an offer, & the other must have
accepted it.
• Once acceptance takes effect, a contract will usually be binding both parties, & the rules of
offer & acceptance are typically used to pinpoint when a series of negotiations has passed
that point, in order to decide whether the parties are obliged to fulfil their promises.
Unilateral & bilateral contracts
Bilateral
• This means that each party takes on an obligation, usually by promising the other
something.
Unilateral
• This means that only one party assumes an obligation.
• In Great Nothern Railway Co v Witham, to reward someone £100 to walk from London to
York.
Invitation to treat
• An offer must be distinguished from an invitation to treat.
• Invitation to treat: is an attempt to stimulate interest without any intention to be bound, it
is an invitation to make an offer.
• Hence, an acceptance of an invitation to treat is in fact an offer.
• Examples of invitation to treat:
A. Display good with price tag
B. Auctions
C. An invitation for tenders
D. Advertisements
E. Timetables and tickets for transport
• Gibson v Manchester City Council
o The HOL ruled that the Council has not made an offer; the letter giving purchase
price was merely one step in the negotiations for a contract & amounted to an
invitation to treat.
• Storer v Manchester City Council
o The court held that a there is a binding contract when Mr Storer signed the
Agreement & returned it.
Advertisements
• Advertisement for unilateral contracts
o Advertisements for unilateral contract are advertisements offering rewards such as
for returning of lost property, or for information of leading to the arrest or
conviction of a criminal.
o They are usually treated as offers, as the contract can normally be accepted without
any need for further negotiations between the parties, & the person making the
advertisement intends to be bound by it.
o Carlil v Carbolic Smoke Ball Co
