1. Asif Tufal
FORMATION OF A CONTRACT
OFFER AND ACCEPTANCE
Has the offeror made an or, an invitation to treat? ie,
offer?
1. Auctioneer’s call for bids: Payne v Cave
2. Display of goods:
Fisher v Bell
PSGB v Boots
3. Advertisement:
Yes. Binding contract as
Partridge v Crittenden
soon as it is accepted by the
(except unilateral adverts: Carlill v Carbolic Smokeball)
offeree.
4. Mere statement of price:
Harvey v Facey
Gibson v Manchester CC
Has there been an unqualified 5. Tender
acceptance?
But note the approach in:
Brogden v Metropolitan Railway
Gibson v MCC
Percy Trentham v Archital Luxfer No contract
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2. Asif Tufal
But may actually be a mere
Yes No, if … 1. Counter-offer: request for more
Hyde v Wrench information: Stevenson v
McLean, or a
2. Conditional acceptance “battle of the forms” issue:
Butler Machine Tool v
Excell-O-Corp
1. Acceptance must be communicated:
Entores v Miles Far East Corp
2. By an authorised person: Powell v Lee
3. Silence does not amount to Exceptions to the Postal
communication: a) Unilateral contracts Rule:
Felthouse v Bindley b) Expressly/impliedly i) Letter not properly posted
Exceptions to the waived ii) Letter not properly
4. Instantaneous communication effective communication rule c) Postal Rule: addressed
when and where received: Adams v Lindsell iii) Postal rule excluded:
Entores v Miles Far East Corp Household Fire Ins v Grant Holwell Securities v Hughes
The Brimnes iv) “manifest inconvenience
Brinkibon v Stahag Stahl or absurdity”
Can a posted acceptance be
Must a prescribed method Must there be knowledge of What if there was a “cross- revoked by quicker means?
of acceptance be adhered the offer? offer”?
to? See: a) Acceptance for reasons No contract according to Scotland – possibly
Holwell Securities v Hughes other than the offer is Tinn v Hoffman Commonwealth – no:
Tinn v Hoffman ineffective: R v Clarke Wenkheim v Arndt
Yates Building v Pulleyn b) If offer plays some part AZ Bazaars v Ministry of
then valid acceptance: Agriculture
Williams v Carwardine
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3. Asif Tufal
TERMINATION OF THE OFFER
Has the offer been terminated
by …
Acceptance Binding contract
Rejection
Revocation must be communicated or it
Revocation is ineffective:
Byrne v Van Tienhoven
Either personally or by a reliable third
party: Dickinson v Dodds
Counter-offer:
Hyde v Wrench Or, by taking reasonable steps if offer
made to the whole world: Shuey v US
Lapse of time:
Ramsgate Hotel v Montefiore
However, if unilateral offer accepted
by performance, it cannot be revoked:
Errington v Errington
Failure of conditions: Daulia v Four Millbank Nominees
Financings Ltd v Stimson
Death, unless lack of knowledge
and no personal element
involved:
Bradbury v Morgan
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