BLAW Template.docx - To determine formation of a contract 1 Offer and acceptance 2 Consideration 3 Intention to create legal relations Offer We must

BLAW Template.docx - To determine formation of a contract 1...

This preview shows page 1 - 2 out of 27 pages.

To determine formation of a contract 1. Offer and acceptance 2. Consideration 3. Intention to create legal relations Offer Offer vs Invitation to treat We must first determine if ___ had made an offer to ___ Offer is defined as an expression of willingness by the offeror to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the offeree. In our case, ___ Bilateral contract: Contract made between 2 people, where the identity of the offeree is known Unilateral contract: Offer is made to the world at large, where the offeror makes a promise in return for an act performed by the offeree. A unilateral offer is accepted when there is full performance of the condition stipulated, and the contract is formed. Carlill v Carbolic Ball Company (1893) page 173 Offer was made to the world a large, showing that the advertisement put up by the company was a unilateral offer, and the unilateral contract is formed when Carlill followed the directions supplied on each ball However, we must distinguish if the statement/ act of ___ is an offer or simply an invitation to treat. An invitation to treat is an expression of willingness to negotiate with the other party, where there is no intention to be bound and no contract is formed at the moment. Any responses to an invitation to treat is regarded as an offer but not acceptance. However, if the response amounts to an acceptance, the person making the proposal may accept/ reject the offer. A mere response to provide more information to an enquiry will not constitute an acceptance too, as seen in Harvey v Facey (1893) Situations in which the law amounts it to an invitation to treat rather than an offer: (1) Advertisements Chwee Kin Keong v Digilandmall.com Pte Ltd (2004) page 176 Advertisements are usually considered an invitation to treat on the basis that people who read the advertisements may want to negotiate further Considered an invitation to treat in this case rather than an offer due to a unilateral mistake and lack of intention to be bound Exception: Carlill v Carbolic Smoke Ball Co (1893) where the court rejected that the advertisement was a mere puff as an intention to be bound is clearly ascertained, and hence held the advertisement to be a unilateral offer. (2) Display of goods Pharmaceutical Society of Great Britain v Boots Cash Chemists (1953) where the court held that the display of goods were only invitations to treat. The customer made the offer to buy at the cash desk and sale was completed when the cashier accepted the offer. (3) Auctions Calls for bids by the auctioneer is an invitation to treat, bids made by those The 2011 Electronics Transaction Act Section 14(1) states: “A proposal to conclude a contract made through one or more electronic communications which is not addressed to one or more specific parties, but is generally accessible to parties making use of information systems, including a proposal that makes use of interactive applications for the placement of orders through such information systems,

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture