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1 Distinguish between an offer and an invitation to treat


It is important for this company now under my management to distinguished between offers and invitation to treat as accepting an offer
creates a binding contract while accepting an invitation to treat is considered as actually making an offer.
In the context of contract law, an offer and an invitation to treat are two different concepts. An offer is a promise in exchange for
performance by another party. For example A lost his dog B promises to give B 500 reward if he brings his dog back. Therefore in this
example A will give B the reward of 500 if B brings the dog back. Generally rewards are offers.
Further examples are as follows:
Gibson v. Proctor (1891) 64 LT 594
Taylor v. Allon [1966] 1 QB 304
R v. Clarke (1921) 40 CLR 227
Williams v. Cowardine (1833) 5 C&P 566
Duxbury (2008) also confirms the fact that an offer is a statement of willingness to enter into a contract on specific terms made with the
intention that if accepted will become a binding contract. The offer is therefore made on the basis that if this was accepted by the
offeree will con contractually bound and no further negotiation is envisaged (Duxbury 2008).
An offer can be expressed orally, or in writing or it may be implied by conduct. For example when a bus travels along the 45 bus route to
Westminister it is making an offer of carriage to any passengers which is accepted when the passenger by conduct, places him or
herself in the bus (Duxbury 2008). (Example of offer by Conduct).
An offer can be addressed to one person in particular, or to a group of persons or to the world at large. For example in the case of
Carlill v Carbolic Smoke Ball Company. In this case the company, proprietors of medical preparation, the Carbolic Smoke Ball issued an
advertisement in which they promised to pay a reward of 100 to any person who used one of their smoke balls in the prescribed
manner (inhalation three times per day for two weeks, contracted influenza. The company also stated in their advertisement that 1000
had been deposited in the Alliance Bank, Regent Street, showing their sincerity in the matter.Mrs Carlill contracted influenza having
used the Smoke ball (having performed the condition).
Before the court of appeal: Lindley L.J. said ,the words of this advertisement is to anyone who performs the condition (which Mrs
Carlill did by using the smoke ball. This case was concluded that this was of the unilateral type (offer to the world).
However in some cases advertisement can be considered as offers for example in the case of: Carlill V Smoke Ball Company which is
concluded to be a unilateral contract an offer made to the world, as a promise was made to the world at large and anyone seeing the
advertisement and fulfil the conditions would be entitled to a reward.
An invitation to treat is classified as generally advertisement where one party makes and offer and it is not intended to be binding
(Poole 2012). Mckendrick (2011) also states that an invitation to treat is an action inviting other parties to make an offer to form a
contract. Advertisements are usually invitations to treat, which allows sellers to refuse to sell products at mistakenly marked. In agreeing
with (Poole 2012), Duxbury (2008) states that an invitation to treat is inviting people to make come forward and make an offer, in this
process the parties are still in negotiations , unlike offers, there is no final intention to bound to buy for example the washing wash
machine that was advertised by Argos. Thus, leaving the offeree with a choice of acceptance or rejection.
An advertisement in a newspaper or magazine is not an offer but an

Invitation to Treat.

Examples of key cases involve with an invitation to treat:


Partridge v. Crittenden [1968] 1 WLR 1204, where the appellant places an advertisement in the publication, Cage and Aviary Birds,
stating, Bramblefinch cocks, bramlefinch hens, 25s each. This advertises was placed inside the classified advertisement column, and
there was no direct words which states, offer or sales
Fisher v. Bell [1961] 1 QB 394: a knife with a price label on it in a shop window was not an offer but an invitation to treat.
Pharmaceutical Society of Great Britain v. Boots [1953] 1 QB 401
2.2 Explain the issues regarding the postal rule
The postal rule only applies to letters of acceptance and not to offers, revocation of offers or counter-offers. The postal rule only applies
to the post and it must be communicated between the parties involved in the contract, stating that this is the only method of acceptance.
Examples of leading cases:
Adams v. Lindsell [1818]: the postal rules state that a letter of acceptance takes effect at the moment of posting.

2.3 Explain consideration, the rules of condition and the test of enforceability
To enforce a contract both parties must adhere to the rules of contract which will be binding on both individuals with consideration of
their (Rights of the third parties) Act 1999.
3.1 Analyse the difference between a condition and a warranty, using cases to exemplify the analysis.
The condition is the term of a contract that if not performed will go the heart of the contract. The breach of the condition will gives the
innocent party the right to end the contract if he or she chooses, in addition to the rights to claim damages for an damages.
A condition is regarded as a fundamental or important terminology in contract law, as this go to the root of the contract. However if there
is a breach of a condition, this will entitled the injured party to repudiate the contract as well as the right to claim damaged for the loss
he or she suffered.
On the other the warranty is a minor terms (term of lesser importance) of the contract if not perform will cause loss, but will not go the
heart of the contract. The breach of warranty will not necessarily end the contract but will give rise or entitled the injured party to claim
for damages occurred as a result of breach of warranty. This is based on Sale of Goods Act 1893.
Key examples as follow:
In the case of Arcos v Ronaasen, in which the timber staves were described as being half an inch in thickness were purchased for
making into a cement storage barrels. However the timber that was actually supplied was one sixteenth of an inch thicker than was
described but did not make any difference to the usefulness of the wood for making the barrels. This was classified as a breach of
condition in accordance to section 13 of the Sale of Goods Act 1893, therefore the buyer was entitled to reject the entire consignment.
However in accordance to, The Sale and Supply of Goods Act 1994, section 15A, and Sale of Goods Act 1979, sections, 13, 14, 15,
states that it would be unreasonable for the buyer to reject the goods, if the buyer does not deal as consumer. Based on this new
additional to the law (modernisation), which states the breach should not be treated as a breach of condition, but as a breach of
warranty. In the case however where the buyer does not deal as a consumer they have the right to reject the goods (for example in the
case above with the timber).
Furthers examples of cases on condition and warranty as follows:
Poussard v Spicers and Pond: This is the case where the claimant enters into a contract with the defendant so as to take the female
lead in a new operetta for three months season at the defendant theatre. The claimant fell sick and miss the first four nights of
rehearsals and performances as a result the defendant had to engage a substitute. The claimant turned up on the fifth night of the
performances and the defendant refuses her services and purported to terminate the contract. The claimant therefore sued the
defendants staying she had been wrongfully dismissed. The court concluded that her promise to perform from the opening night was a
condition.
Bettini v Gye.