° ° Requirements for the offer and acceptance ● Offer : made with the intention that the offeror will be legally bound ● Acceptance : undertaking that the offeree will be legally bound ● Offer : complete = must contain all the terms by which the offeror is willing to abide ● Acceptance : unconditional acceptance of all the terms in the offer ● Offer : clear and certain ● Acceptance : clear and certain ● Offer : must be addressed to a particular person or persons, unknown persons (e.g. all teachers), the general public (anyone who is willing to do what the offer requires) ● Acceptance : accepted by the person or persons addressed or somebody who is authorized to act on their behalf. ° ● Offer : only complete when communicated to the offeree ● Acceptance : only complete when communicated to the offeror ° ° The falling away of the offer ● Expiry : an offer limited to a certain time falls away if it has not been accepted within that time.
● Revoked : the offeror withdraws, revokes or annuls the offer before acceptance ● Rejection : if the offeree rejects the offer, the offer falls away and cannot be revived ● Counter-offer : if the offeree rejects the offer with a counter offer e.g. the offeror: I offer to sell this dishwasher for R500. The offeree: I will buy it for R450. The initial offer falls away and the offeree becomes the offeror and vice versa. ● Death : of either party before acceptance. ° ° The continued existence of the offer: The option ● It is possible to entrench the continued existence of the offer by means of an option or a safeguard ● The offer cannot be withdrawn while the safeguard exists. ● The safeguard is a separate contract: an option ● The option-giver makes an offer to conclude a particular contract (the substantive offer) and in addition makes a further offer to keep the first offer open for a specified period (the option) ● If the offeree accepts the second offer (the option), the option contract comes into being. ● The offeror is bound to keep the substantive offer for the agreed period and can neither revoke the substantive offer nor conclude a contract with another party concerning the same subject. ° ° Special rules with regard to offer and acceptance ° An invitation to make an offer ● A request or invitation to make an offer or to do business is not a true offer e.g. a butcher advertises bulk chops on his shop window for R49.99. This is not an offer. It is an invitation to do business. The same stands true for newspaper and television ads or catalogues or periodicals. ● When a member of the public reacts to this invitation, he or she is making an offer to purchase the displayed or advertised item. When the dealer accepts the offer, consensus is reached and a contract of sale arises.
You've reached the end of your free preview.
Want to read all 57 pages?