OFFER AND ACCEPTANCE

meeting of minds on the subject of the agreement

meeting of minds/agreement

an objective approach

1. an offer

2. acceptance

3. intention to create legal relations

the ‘last shot fired’ wins in a battle of the forms

a more liberal approach looking at all circumstances to see if parties have objectively reached an agreement

invitation for the other party to make an offer, which the former party is free to accept or reject

lord diplock: ‘may be prepared to sell’ sufficed as an invitation to treat

advertisement: advertisment of a wild bramblefinch bird held not to be an offer

one person makes a promise to the world in exchange for fulfilment of certain requirements

satisfying conditions for using the smokeball constituted acceptance of a unilateral offer

displays: display of a product on a shelf was not an offer; customer offered to buy the product by taking it to the till

displays: display of flick knives was an invitation to treat

each bid is an offer accepted by the auctioneer

auctioneer makes a unilateral offer which is accepted by placing the highest bid

the auction of a car was an invitation to treat

offeror may revoke an offer before acceptance takes place

revocation: revocation of an offer can be communicated through a third party

revocation: the postal rule is not applicable to a revocation of an offer

1. revocation

2. rejection from offeree

3. lapse of time

4. counter offer

5. death or insanity

lapse of an offer: a long period of time had passed between the offer and acceptance therefore the offer had lapsed

counter offer: a proposal of different terms by the offeree kills the original offer

death or insanity: contracts cannot automatically be revoked by death alone and notice must be given to the offeree, except when there is a unilateral offer

acceptance must be communicated to the offeror

generally binding when it is received

postal rule does not apply to acceptance delivered by instantaneous communication

where risk of non-delivery of acceptance lies with the offeror, he is bound even if it wasn’t received

postal rule applies

when post is the agreed means of communication, a posted acceptance is binding from the moment of posting, so long as the letter is properly stamped/addressed

case authority to the postal rule

postal rule will not apply if expressly excluded in the offer

silence cannot constitute acceptance even when the offeree has intention to accept

woman’s inaction over 7 months sufficient to establish acceptance of an investment policy taken out on her behalf

most counter offers are interpreted as rejections of the original offer

a request for information is not a counter offer

request for tenders represents and invitation to treat and each tender submitted amounts to an offer

an invitation to tender before a deadline can imply a unilateral contract to consider all timely bids

machine represents the offer and acceptance is inserting the money

terms of a contract written on the back of the ticket is too late to be incorporated

vague agreements: buyer purchased lorry with price to be paid ‘on hire purchase terms’ and HoL held the agreement was uncertain, therefore the contract was void

incomplete agreements: HoL held the agreement was incomplete; lacked price and payment schedule

unenforceable

no presumption of intention to create legal relations

presumption of intention to create legal relations

first impression rules which can be reversed if appropriate

married at the time of agreement therefore no intent to create legal relations

presumption of no intent in domestic agreements is weaker when splitting property at the end of a relationship (divorce)

relationship between mother and daughter a purely domestic agreement

detrimental reliance by one party is sufficient to rebut the presumption in domestic agreements

parties to increasingly common pre-nuptial agreements can be thought to intend legal relations

presumption of legal intent in a commercial agreement was displaced by an express statement of ‘binding in honour only’