Offer and Acceptance

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

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Offer and Acceptance 1. Introduction to Contract Law A. Types of Contracts Bilateral : - Promise for a promise - Outstanding obligation on both sides - Most contracts Unilateral : - Promise for an act, or an act for a promise - Made with intention to be bound - Outstanding obligation only on one side Executed : - Has been performed, ie. Executed eg. Buying a shop item – paid for/finished Executory : - Yet to be performed, eg. Agreement to fix house 6 months later Contracts by Deed : - Under seal (as used in the expression “signed, sealed and delivered”), eg. Royal Stamp Simple/Parol Contracts : - All else. Valid because of presence of consideration. NB : - Advertisements of unilateral contracts can be treated as offers. ( Carlill v Carbolic Smoke Ball Company – Intention to be bound can be inferred from explicit details of advertisement.) - Bilateral contract advertisements are normally only invitations to treat : Lack of sufficient detail Absence of requisite intention to be bound on advertisement 2. Offer 1. Theoretical Definition Cheshire, Fifoot and Furmston : An offer, capable of being converted into an agreement by acceptance, must consist of a definite promise to be bound provided that certain specified terms are accepted. Touchstone of Intention Intention to be bound Per Salleh Abas FJ (as he then was) in Preston Corporation Sdn Bhd v Edward Leong (1982) 2 MLJ 22 at 23: An offer is an intimation of willingness by an offeror to enter into a legally binding contract. Its terms either expressly or impliedly must indicate that it is to become binding as soon as it has been accepted by the offeree. 2. Nature of an Offer Objective test of agreement. Instead of state of mind (subjective). Courts will look at what was said and done. Courts may infer whether Offer or Invitation to Treat from the circumstances. Objective test much more certain : - Offer can be made expressly or impliedly (by conduct) - Wording or language used is not conclusive - Offer can be made to varying groups of people
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* Carlill v Carbolic Smoke Ball Company (1893) 1 QB 256 (Court of Appeal, England) (Phang 80) ( Significance : Offer can be made to the world at large . Also, a unilateral contract can constitute an offer if there is sufficient detail , and an intention to be bound can be inferred from the circumstances.) Facts : Defendants were proprietors of “The Carbolic Smoke Ball”. Advertisement offered to pay anyone £100 if they caught influenza after using smoke ball in specified manner for specified period. Defendants deposited £1,000 with bankers to “show their sincerity ”. Plaintiff on faith of advert used smoke ball as required and caught flu, thus sued for the £100. Held
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This note was uploaded on 02/07/2012 for the course LGST 101 taught by Professor Hsu during the Spring '11 term at Singapore Management.

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

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