2.4 Rules of Offer and Acceptance.pptVIP

2.4.3 Withdrawing the Offer and Acceptance Withdrawing the Offer: 5 main rules(p.133) If an offer is made for a specified time it cannot be withdrawn before that time. If the offer must be accepted within a specified time and no acceptance is made then the offer is automatically withdrawn. If the offer does not have a time period on it then, unless it is accepted within a reasonable time, it will be automatically withdrawn. An offer will be automatically withdrawn by the death of either party or by the bankruptcy or insanity of the offeror. If the offer does not have a time period on it, it can be withdraw atn any time before it has been accepted. 2.4.3 Withdrawing the Offer and Acceptance case on page 134. Withdrawing Acceptance If made verbally, the contract is completed and no withdrawn. If by post, acceptor can withdraw if he sends another communication which arrives before or at the same time as the acceptance. Task 9: page 136. Assignment 1: 139 2.4 Rules of Offer and Acceptance Outline What amounts to an offer? The form and time of acceptance Withdrawing the offer and acceptance 2.4.1 What Amounts to an Offer Offer: a definite promise to be bound on specific terms. It can be made expressly, or by implication. Communicating through the post: The offer is made when it actually reaches the other party, not when it might have reached him in the ordinary course of the post. Certainty of the offer: The offer must not be too vague; if the offeree accepts, each party should know what their rights and obligations are. Gunthing v Lynn 1831 The facts: the offeror offered to pay a further sum for a horse if it was ‘lucky’. Decision: the offer was too vague and no contract could be formed by any purported acceptance. Inviting Offers/invitation to treat This is an indication that someone is prepared to receive offers with the view to forming a binding contract. Four types: Auction sales: an auctioneer’s request for bids is not offer; the bid itself is the