02.Agreement_offer_and_acceptance.pdf

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Expressed
Implied
(by offeree making a counter-
offer or a conditional acceptance)
Hyde v Wrench (1840)
An offer may have an expiry
date – acceptance cannot
take place after that date
In no expiry date is expressed, an
offer will be deemed to have expired
after a reasonable period of time
Ramsgate Victoria Hotel v Montefiore
(1866)
withdrawal of the offer by the offeror
must happen before the
acceptance has taken place
even if the offer states that it will remain open
for a certain period of time, the offeror still
may revoke the offer before the expiry date,
provided no consideration has been given
the revocation must be
communicated to the offeree
Routledge v Grant (1828)
Invitation to make an offer
Rejection
Offer can be converted into contract
by acceptance while an invitation to
treat cannot be accepted, because
a response to an invitation to
treat may be an offer
expression of willingness to
contract on certain terms with the
intention that if accepted, it will
become a binding contract
a response to an offer is either
acceptance or rejection
Offer
Lapse of time (between the
offer being made and the
offer being accepted)
Invitation
to treat
statement that if accepted,
creates a contract
Generally, the following are
considered invitation to treat
How to make a distinction?
• Is the statement clear, definitive and unambiguous?
• Is it complete?
Advertisements (
Grainger v Gough (1896)
)
Display of goods for sale: invitation to treat, not an offer to sell
(
Fisher v Bell (1961)
)
Other areas of comparison: quotations, price lists, catalogues,
auctions, tenders are classified invitations to treat
Quotations/price lists
Auctions (
Harris v Nickerson (1873)
)
Revocation
Agreement:
offer and
acceptance
Termination
of an Offer
Rules of acceptance
(
offer must be accepted to
create a binding contract
)
Once performance has started, offer cannot
be retracted
Pavey and Matthews Pty Ltd v Paul (1987)
Must be unqualified
and correspond
exactly to the terms of the offer
Neale v Merret (1930)
Must be communicated
Silence does not equate valid
acceptance
, unless under the terms of
already existing contractual agreement
In case of
unilateral contracts,
acceptance is recognised to arise by
performance
, without the need to
communicate the acceptance
Billings v Arnott & Co (1945)
Postal rule
(
Where an offer is accepted by
post, acceptance takes place on the date,
time and place of posting and not receipt.
The postal rule does not apply to other
forms of communication
)
If the offeree dies, the offer is
automatically terminated
If the offeror dies, the offer is terminated unless
the offeree has accepted the offer before he
knew of the offeror’s death (
Re Whelan (1897)
),
but the validity of this acceptance depends upon
the nature of the offer (
does it involve a personal
or non-personal service?
)
Death
Before performance (in
unilateral contracts)
Offers made to the world at large must be
also retracted to the world at large
Shuey v United States (1875)
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