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contracts agreement
Agreement
Offer
The offer must be communicated by the offeror or an authorised agent of offeror to offeree: Henthorn v
Fraser
However, it is not necessary for an offer to be made to a specific person or a class or group of people. An offer can be made to "all the world", in which case the offeree is regarded as a member of the general public: Carlill v Carbolic Smoke Ball
When an offer is made, the term of the proposed contract must be communicated to the offeree: Thornton v Shoe Lane Parking
However, an offer can be made in general terms, leaving the precise terms of the contract to be settled later: Master v Cameron
The fact that the word 'offer' is used is not itself conclusive: B Seppelt & Sons Ltd v Commissioner for
Main Roads
An offer must be distinguished from "an invitation to treat", which can be described as any part of the negotiation process that invites further bargaining, rather than acceptance: Pharmaceutical Society v
Boots Cash Chemist
Acceptance
Communication of acceptance is generally required: Felhouse v Bindley, EXCEPTIONS are:
• Where an offeree with a reasonable opportunity to reject the offer of goods or services takes the benefit of them under circumstances which indicate that they were to be paid for in accordance with the offer: Empirnall Holdings v Machon Paull Partners
• Offer may dispense with the need of communication or acceptance takes the form of performance.
Carlill v Carbolic Smoke Ball Co.
• Postal acceptance rule: Bressan v Squires
• The rule only applies when the parties contemplated that acceptance would be communicated by the post: Henthorn v Fraser
Acceptance must correspondent with the offer, any departure from the offer will amount to a 'counter-offer':
Butler Machine Tool Co Ltd v Ex-Cell-O Corporation (Eng) Ltd
Acceptance must be in reliance on the offer. This means that all the time of acceptance, the offeree must know of the existence of the offer and the acceptance must be based on the

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