To do - 10 mins in groups
Each group has a short scenario in a bubble
Place the bubble in the middle of your large sheet of paper
Then use the flow chart at the front of your notes to decide if
there is a legal contract
Write four sentences starting as follows:
There is/isnt an offer because...
There is/isnt an an intention create legal relations because...
There is/isnt an acceptance because...
There is/isnt an consideration because...
Extension activity: With the blank bubble your group has
create your own scenario and answer the same four questions
Offer
An offer is a statement of the terms upon which the
person making the offer is willing to enter a contract: it
can be written or verbal.
Offer simple definition: What a person says he will
do in the contract and for what reward
(money/goods)
•The offer must be communicated to the other
party.
•Unless a person knows about an offer it has no
effect.
•This is because the person cant make any decisions
about the offer
•An offer can only be accepted while it is open
•Once the offer has ended it cannot be accepted
•So it cannot be the basis of a contract
•The important point is to establish how long the
offer lasts
Cases that are regarded as offers
• Thornton v Shoe Lane
Parking
• C was entering a car park via an
automatic barrier. Mr Thornton put
money in a machine to open the
barrier and was given a ticket.
• The offer is made by the owner of
the machine and that it is the buyer
from the machine who accepts the
offer and makes the contract come
into existence
• You cant negotiate with a machine!
• Chapleton v Barry
• The claimant hired a deck chair
from Barry UDC for use on the
beach. There was a notice on the
beach next to the deck chairs stating
that the deck chairs could be hired
at 2d for three hours and also
'respectfully requested' the public to
obtain tickets issued by the chair
attendants.
• The offer was the notice next to the
pile of deckchairs.
• Where there is no attendant to
negotiate with then a sign or even
the deckchair can be the offer if this
is the custom with this type of sale.
What is and isnt an offer
•There are certain situations where what is made to the
other party is the start of negotiations.
•Any communications regarded as negotiations are NOT an
offer.
•Negotiations are called an Invitation to treat.
•An Invitation to treat is merely an indication of a
willingness to enter negotiations.
•But an offer is a statement that a person is willing to
enter into a legal contract.
Invitation to Treat (ITT)
• Is not an offer but classed as negotiations
• Advertising of products/services usually an ITT
• ITT exists because of the following:
1. Limited stock of the item
2. The item may have legal restrictions on its sale
3. The seller may wish to choose who purchases the product
4. The seller may wish to negotiate the price, e.g. on ebay or
newspaper advert
5. The seller may wish to decide on whether or not he sells the
product at all
ITT cases
• Partridge v Crittenden
• Fisher v Bell
• D placed an advert in a
• The defendant had a flick
classified section of a
knife displayed in his
magazine offering some
shop window with a price
bramble finches for sale. S.6
tag on it. Charged with an
of the Protection of Birds Act
offence where it was a
1954 made it an offence to
offer such birds for sale.
crime if flick knives were
“offered for sale”
• Not an offer, ITT, due advert
in newspaper meaning may be • Not an offer as seller may
many buyers and limited
decide
whether
or
not
to
stock.
sell the item.
ITT Cases
• Gibson v Manchester CC
• A letter from the council
about selling a council house
to Gibson said “The
Corporation may be prepared
to sell the house to you at the
purchase price of £2,180”
• The word “may” was held to
indicate an ITT as for an offer
to exists it must be clear the
person making it wishes to
enter into a legally binding
contract.
• Pharmaceutical Society of
GB v Boots
• Boots had a self service system where
the customer would pick the product
and take it to the till for purchase.
Some items needed a pharmacist
present and this was not always the
case. In such circumstances the
customer could not purchase until a
pharmacist was available.
• The goods on the shelves were an ITT
and the customer made the offer at the
till due to legal restrictions on the sale
of some items.
ITT Case
• Harvey v Facey
•
Harvey sent a Telegram to Facey which stated: "Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid;"
Facey replied by telegram:"Lowest price for Bumper Hall Pen £900."
Harvey then replied:"We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you.
Please send us your title deed in order that we may get early possession."
•
This was an ITT as it was regarded as a request for further information. Harvey had not
answered the question as whether or not he would sell the farm so no clear offer.
Task
In the groups of three:
Complete the activity three on page 38
Write your answers on the white board
You have 15 minutes.