Tony Walmsley and Emma Teare

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Presentation transcript:

Tony Walmsley and Emma Teare Law of Contract Tony Walmsley and Emma Teare

Requirements for a contract Offer + Acceptance = Agreement Consideration Intention to Create Legal Relations

Offer or Invitation to Treat? An offer once accepted creates an agreement An offer can be contrasted with an invitation to treat An invitation to treat is an invitation to enter negotiations The “acceptance” of an invitation to treat does NOT create an agreement It is not always easy to distinguish between an offer and an invitation to treat

Offer or Invitation to Treat? In certain types of standard transactions (e.g. display of goods, advertisements) there are some general rules that apply as to whether or not an offer has been made (can be rebutted)

Advertisements Generally these are Invitations to Treat NOT offers If an advert in the paper was an offer the person who placed the advertisement would be required to contract with anyone/everyone who wanted to purchase the goods at the price stated

Examples of Invitations to Treat Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 Partridge v Crittenden [1968] 1 WLR 1204 Fisher v Bell [1961] 1 QB 394

Some adverts ARE offers Often this is the case in UNILATERAL contracts The leading case is…

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Court of Appeal

Rewards are often offers Gibbons v Proctor (1891) 64 LT 594 Taylor v Allon [1966] 1 QB 304 R v Clarke (1927) 40 CLR 227 Williams v Cawardine (1833) 5 C & P 566

Example question: ‘Chris offered to sell:   ‘Chris offered to sell:  a) his Hornby train set to Richard…..’ Is this necessarily an offer in the legal sense?