1. Offer and Acceptance - Offer and Acceptance...

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Offer and Acceptance Contract ( definition) - A legally binding agreement - Meeting of minds manifested through offer and acceptance (consensus ad idem) - Consideration and the intention to create legal relations - Parties must have capacity to contract - Parties must freely consent to an agreement Factors vitiating their free consent: - Mistake - Duress and undue influence - Must not suffer from illegality Basic Terminology: Void contract: contract is treated as a nullity due to a serious flaw or fundamental mistake Voidable: valid contract, but one party has the right to avoid it. ( Misrepresentation) Unenforceable: v alid and legally binding but cannot be enforced. (due to provisions of law) Bilateral: The offeror makes a promise in return for a promise on the part of the offeree (a mutual agreement between two parties)* Unilateral: The offeror makes a promise in return for an act to be performed by the offeree (Performance of the act constitutes as consideration and acceptance of the offer)* Simple contracts : Oral or in writing, or part oral and writing Special contracts : formal contracts by deed or under seal (do no require consideration)
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Offer Definition: A proposal by one party indicating his willingness to be bound by certain terms provided they are unconditionally accepted by the other – orally, in writing or by conduct 1) Contains the terms of exchange* 2) Indication of willingness to be bound* 3) Confers on the offeree the power to bind the offeror upon acceptance such that the offeror can no longer withdraw the offer* Note: Once an offeree has accepted an offer, a contract has come into existence. Offers to public at large Invitations to treat Definition: Expressed willingness of one party to enter negotiations with the party without any intention to be bound . The other party makes the offer. Examples: Advertisements, Displays of goods for sale, Auction Sales, Tenders 1. Advertisements – catalogues, brochures, price lists (applies to electronic trading) Basis: People who sees the advertisement may want to negotiate further . The advertiser may not be in a position to sell to all who respond to the advertisement. Case: Patridge v Crittenden : Sale of wild bird advertisement – ruled as an invitation to treat If the seller makes a mistake by quoting a ridiculously low claim, the seller would not have to honour his “contract” Chwee Kin Keong and others v Digilandmall.com Pte Ltd (2004)* Facts: The defendant put up an advertisement for sale of their laser printers. An error on the quotation was made. The plaintiffs placed orders on the website, and received an automated response from each purchase. Realising the error, the defendant removed the advertisement. The plaintiffs sued insisting that the orders were binding on the defendant.
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