Preview

Discuss About Offer and Acceptance in Contract Law:

Better Essays
Open Document
Open Document
1016 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Discuss About Offer and Acceptance in Contract Law:
Currently, majority of people do not know much about contract law. Actually, we are signing contracts everyday. For example: Buying candies in a shop. There are two types of contract (written and verbal agreement). A contract is made by orally, by conduct and in writing. It also consists of an agreement, consideration and legally binding. There are eight elements of contract law, namely offer, acceptance, consideration, capacity, legal relations, legality and agreement. In this essay, I am going discuss the offer and acceptance particularly.

Offer
In addition, an offer is when an offeror(the person who makes the offers) proposes a set of terms to an offeree(the person who accepts the offer). However, people might be in doubt about the difference between “offer” and “invitation to treat”. Invitation to treat is an invitation to make an offer. It is not an offer. This case “Fisher v Bell” shows us how to recognize an invitation to treat and an offer. It was about the defendant Bell was accused of offering a sale for a dangerous weapon. He had displayed a flick knife in his shop window and sold it for 4shillings. However, the judge said he was not guilty as he did not sell it to anyone and the display was only an invitation to treat. A display of products in shops is only inviting consumers to make an offer. Here is another good example. The case “Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd (1953)” was about Boots (the defendant) was sued of selling drugs without a pharmacist present in the supermarket. However, a pharmacist was near the till. Therefore, it depends on where the contract was made. If the contract was made near the till, the defendants would not have been guilty. On the other hand, if the contract was made where the drugs was displayed, the defendant would have been guilty. Consequently, the defendant was not guilty as the display of goods on supermarket shelves is only an invitation to treat. A customer makes an offer to buy

You May Also Find These Documents Helpful

  • Powerful Essays

    Bus311 Business Law I

    • 2524 Words
    • 11 Pages

    In this paper, I will reflect on the operation of contracts. Business law shows how contracts may be classified in several ways depending on the manner in which they are created, expressed, or performed. I have learned a lot from this course and I will use that to help write this paper. In the following paper I will discuss the oral or written contracts; I will discuss express or implied contracts, and will discuss formal or simple contracts. I will also discuss the impact of the contracts in a business and show the true propose of contracts. I will show what is needed in a contract to be legally enforceable. I will discuss how a contract must contain the following six elements: an offer and acceptances, a mutual agreement, a consideration, a competent parties, and legality of purpose, and proper form. All of this will be discussed in depth in the following paper.…

    • 2524 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Unit 5 P1

    • 3273 Words
    • 15 Pages

    Learners will consider rules for the formation of contracts and develop an understanding of the legal effect of each stage in negotiating a contract, up to and including the final agreement. The law on misrepresentation and the terms in contracts are explored. It is central to the unit that learners understand the meaning of express and implied terms in a contract. They will examine a contract or contracts to consider the use of key terms. For example, terms with respect to payment can be analysed and put…

    • 3273 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    This unit introduces you to the operation of the law of contract as it applies to businesses. You will also apply to consumer situations and consider the meaning and effect of standard form contracts.…

    • 1765 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Law 421 Contracts

    • 1070 Words
    • 5 Pages

    Contracts are an important part of everyday life. They are an essential part of business. As a student of a business law class, I will discuss in this paper several aspects of contracts. This paper will give a definition of a contract and the essential elements necessary to form a valid contract. It will briefly discuss breach of contract and the difference between a material breach and a nonmaterial breach of contract. Examples of legal and equitable remedies available for breach of contracts will be highlighted. Also, legal excuses for nonperformance or other grounds for discharge of contracts will be addressed. Finally, three types of common contracts personally and professionally encountered will be mentioned.…

    • 1070 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Contracts are essential in the business world and apply to both large and small businesses (Lau, 2011). Essentially, contracts are a legally enforceable promise to do something in exchange for something of value (Beesley, 2016). Elements of a contract formation include offer, acceptance and consideration (Colorado State University – Global Campus, 2016). Without proper formation, contracts can be invalid (Lau, 2011). The six elements of contract formation are offer, acceptance, consideration, mutuality of obligation, competency and capacity, and sometimes a written instrument (US Legal, n.d.). Contracts can be both bilateral, meaning an agreement between two parties, or unilateral, where action is taken by one party or group (Lau, 2011). This…

    • 833 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    2. Explain the concepts of agreements, consideration, capacity, and legality in formation of contracts. A) An agreement consists of an offer and acceptance. An offer to sell equipment for $300 is a communication of an offer. If one agrees to pay the price for the equipment there is an acceptance. B) Consideration involves the exchange of value. One party gives up something of value in exchange for the other party’s value. If there has been an exchange of promises,…

    • 480 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    An offer is a definite promise or proposal made by the offeror to the offeree with the intention to be bound by such promise or proposal without further negotiation. An invitation to treat is not an offer, but a statement or expression made by a person to invite offers for consideration. With reference to Gibson v Manchester City Council [1979], the Council was running policies of selling council houses to the occupants, saying that they may be prepared to sell the house and require the occupants to…

    • 989 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Contracts in Business

    • 2898 Words
    • 12 Pages

    On the 10th of September an offer was distinguished between Huddersford Electronics Ltd (HE ltd) and Gem Computer Stores (GCS). The offer was an invitation to treat as there is an entitlement that an offer could accepted and therefore, a contract could be formed. An offer is formed as HE ltd posted an offer to sell 10 laptops to GCS, keeping the offer open until the 24th September. A statement is made by HE ltd who is giving information to GCS expressing an intention to sell something in the future. For example, in Harvey v Facey, there was an offer agreeing to buy the pen for £900. This was because information was requested and sent. However, there was no acceptance. Similarly, GCS has just received information, but have yet not agreed to accept the offer. Furthermore, in this case an offer is distinguished from a mere puff as a statement is made by its nature which is yet not intended to have legal relations. Moreover, the case of Partridge v Crittenden illustrates that there was an invitation to treat to induce an offer which hereby made party b make an offer. In relation, HE Ltd have advertised and induced an offer to GCS to make an offer.…

    • 2898 Words
    • 12 Pages
    Better Essays
  • Good Essays

    Law Types of Contract

    • 846 Words
    • 4 Pages

    An offer is an expression of willingness to contract on a specific set of terms, made by the seller with the intention that, if the offer is accepted, he or she will be bound by a contract. Both offer and invitation to treat are totally different. Invitation to treat is an invitation for other people to submit offers. Some everyday situations that we might think are offers are in fact invitations to treat. For example, when a book is placed in a shop window priced at RM10, the bookshop owner has made an invitation to treat. When we pick up that book and take it to the cashier, we make the offer to buy the book for RM10. When the person at the cashier takes our money, the shop accepts our offer, and a contract comes into being.…

    • 846 Words
    • 4 Pages
    Good Essays
  • Good Essays

    John is an offeror as he is putting his property out at 2 million and this offer may also be made to the world at large not just individuals or specific groups of people(Carhill v Carbolic Smoke Ball Co 1893). After having assessing through the situation of Adam and Bill, i would like to touch on assessing Adam's situation first. In this scenario, John was the offeror as he offered 2 million for the house and Adam is the offeree but as Adam was the first viewer of the house and he offered to pay 1.8 million, Adam then became the offeror and John became the offeree. Reason being there was a counteroffer of 1.8 million instead of the original 2 million done by Adam which made him the offeror. Following, John whom is the offeree did not response either positively or negatively towards Adam's offer but only kept quiet, so i would deem that there was no communication between them which also means there was no acceptance for this sale of property. Additionally, between these two parties the offeror and offeree, they had not applied the theory of silence to be constructed as acceptance for the dealing of the house. In this case John did not reciprocate towards Adam when he offered the price of 1.8 million, acceptance must be communicated ( Entores Ltd v Miles Far East Corp). Since there was no communication between offeror Adam and offeree John to agree that offeree's silence would be formulated as acceptance, this then would highlight that silence does not constitute as acceptance according to the case (Felthouse v Bindly 1862). Unless, there was communication done between Adam and John that silence would constitute as acceptance, following with both parties agreeing verbally or in written form on the price of the property, Adam has no factual grounds to take legal actions against John.…

    • 731 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Contract Law - Offer

    • 962 Words
    • 4 Pages

    8. Explain whether each of the following is a bilateral offer, unilateral offer or not an offer at all:…

    • 962 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    business law case study

    • 1665 Words
    • 5 Pages

    a) Four essential elements of a contract should be Offer, Acceptance, Intention to create legal relations and Consideration. Firstly, offer, according to Adams(2012), is a full and clear statement of the terms”(p79) send to a party(the offeree) by another party(the offeror). Otherwise there could be a misunderstanding of an invitation to treat or negotiation which are similar statements. If an offer intends to be legally binding, acceptance, by which the offerees can show their agreement of all the terms of the offer, is needed. Acceptance needs to be valid and informing the offeror, while the terms should as same as the previous ones. Another element, i.e. consideration, aims to make sure the promise made is of value. As defined by Jones (2011), the consideration needs to give benefits to the one, who is suffering a loss at the same time. Last but not least, while making an agreement to be legally enforceable, intention to create legal relations is important. While judging whether it is a binding contract or not, the situation to make this contract needs to be considered, in other words, according to Adams(2012), contract made in a domestic or social environment will not be legally bound. Otherwise, if parties are willing to do a commercial agreement, it will be regard as legally bound(Jones, 2011).…

    • 1665 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Hong Kong Law Exam Date: 24 May 2010 (Tuesday) Time: 14:30~17:15 Total answer three questions @ 300marks 1 question @ 100 marks 5 choose 3 questions Business Law Lecture 2 and 3 - Essential elements of a contract ← Essential elements of a contract □ Offers □ Acceptance □ Consideration □ Intention to be legally bound ← Consideration P.29~31…

    • 353 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Another area in making an offer is an invitation to treat. This is not an offer, but an indication of a person’s willingness to negotiate a contract. Or in other words, it invites someone else to make an offer for what they are displaying. An example of a case where an invitation to treat was present was in Fisher V Bell, it was established that, where goods are displayed in a shop together with a price label, such display is treated as an invitation to treat by the seller, and not an offer. The offer is instead made when the customer presents the item to the cashier together with payment. Acceptance occurs at the point the cashier takes payment.…

    • 1991 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Offer and Acceptance

    • 443 Words
    • 2 Pages

    The main situation where an invitation is mistaken for an offer is in advertising. Advertising is not an offer, but rather an attempt to induce offers. Advertising is therefore classed under contract law as an invitation to treat. Only when the customer offers to pay for the goods at the advertised price has an offer been made.…

    • 443 Words
    • 2 Pages
    Good Essays