The existence of the contract depends on whether or not there was an agreement between the parties.
The parties must be at consensus ad idem for the agreement to be valid.
An offer is an expression made by the offeror to the offeree communicating the offeror’s willingness to perform a promise.
Case: Carlill v Carbolic Smoke Ball Co (1892)
States that a unilateral contract brought into existence by the act of one party in response to a conditional promise by another.
The contract is made with that limited portion of the public who come forward and perform the condition on the faith of the advertisement.
With the limited evidence at hand, we may need to investigate further as to the contents of the document before we may conclude whether or not his statement or advertisement did amount to an offer; unilateral contract.
Whether or not ____’s statement amount to an offer depends on the test in ______. An offer must be distinguished from an ________.
Invitation to Treat
Case:Patridge v Crittenden (1968)
States that acceptance of an invitation to treat does not lead to a contract. Advertisements are generally viewed as an invitation to treat.
Display of Goods
Case:Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1952)
States that a display of goods is considered to be an invitation to treat and not an offer. The offer is made when a customer selects the item he wants and brings it to the cashier to pay for it.
Auctions and Tenders
Auctions are generally viewed as invitation to treats and bids are viewed as offers.
Case:Harvela Investments Ltd v Royal Trust Co of Canada (CI) Ltd (1986) States that where an invitor expressly binds himself to accept the highest or lowest tenderer, the auction may amount to an offer. Provision of Information
Case:Harvey v Facey (1893)
States that a communication may not be an offer but a mere response to a request for information.
Whether or not the statement/query posed by ____ amount to an offer depends to the exact words that was used. It may appear that the statement made was a mere query to _____ and therefore does not amount to an offer.
*However, if ____ can prove that this was not a query, then _____’s statement may amount to an offer.
If ____’s statement did amount to an offer and is being accepted unconditionally, there is acceptance and there will be a binding agreement between the parties.
Case:Stuttgart Auto Pte Ltd v Ng Shwu Yong(2005)
Compaq Computer Asia Pte Ltd v Computer Interface (S) Pte Ltd (2004)
States that conditional acceptance is treated as no acceptance.
In order for an offer to be accepted, the following must be established…
Knowledge of Offer
Case:R v Clarke (1927)
Fitch v Snedaker (1868)
States that there is no contract if the person did not have knowledge of the offer even if he performs obligations which amounts to acceptance.
Case:Williams v Carwardine (1833)
However, once the offeree is aware of the offer, it does not matter that he was prompted to act for reasons other than the desire to accept the offer.
Case:Tinn v Hoffmann & Co (1873)
States that cross offers implies a lack of consensus ad idem between the parties at the time of making the offers, therefore no contract is formed.
Communication of Acceptance
Case:Entores Ltd v Miles Far East Corporation (1955)
States that for an acceptance to be effective, it must be communicated to the offeror. Physically received in writing or heard by the offeror if it was made orally.
EXCEPTIONS TO COMMUNICATION REQUIREMENT
1. Waiver of Communication - Unilateral Contracts
Case:Carlill v Carbolic Smoke Ball Co (1892)
Performance of the act by the offeree may be construed as acceptance without require formal communication to the offeror.
Case:Felthouse v Bindley (1862)