Offerer & Acceptance (Law)

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  • Topic: Contract, Invitation to treat, Offer and acceptance
  • Pages : 3 (998 words )
  • Download(s) : 690
  • Published : February 19, 2012
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Offer and acceptance is one the main 7 essentials to create a legally binding contract since a contract is based on agreement. It is also an essential for a court to arbitrate problems. An offer is a manifestation (orally, in writing, or by conduct) of willingness to enter into bargain, which justifies another person’s understanding of assent to that bargain is invited and will conclude the transaction. An Offeror is the party who makes the offer. An offeree is the party who receives the offer and is asked to accept it and thus form a contract. An offer can be either bilateral (made to a specific person(s)) or unilateral form (made to the whole world). (Frey & Frey, 2001) An invitation to treat or invitation to chaffer is where a person will wish simply to open negotiations, rather than to make an offer which will lead immediately to a contract on acceptance (Stone, 2009). The announcement that Manjula made during a lecturer seemed to be more unofficial. He also mentions that he is only prepared to sell the car so the language itself mentions that it is an invitation to treat i.e. If someone wishes to sell their car they may enquire if someone is interested in buying it which is clearly not an offer, even if a price is indicated, it may simply be an attempt to discover their interest rather than committing to particular terms. This was the view taken in Gibson V Manchester City Council (Stone, 2009). Generally an advertisement is taken to be an invitation to treat and not as an offer as recognized in - Partridge v Crittenden. However, there is an exception to this as established in the case of Carlill v Carbolic Smoke Ball Co. where at certain instances advertisements can also be offers i.e. as long as they are specific (e.g. in Loftus v Roberts the court stated that when a contract is made all the key terms must be identifiable or it will be invalid) and if the offeror unquestionably intends to make a contract then it can be termed as an offer. The notice that...
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