1.

Contract:

Voluntary assumption of obligations between parties to it.

2. Objective test:
Designed by Justice Blackburn in the case of Smith vs Hughes. Also
known as reasonable person test. Addopted in the case R.T.S Flexible
System vs Molkerei. The application of objective test was observed in
Centrovincial Estates vs Mechent Investors.

3. Offer:

Firm undertaking to be bound in the event it’s terms are accepted by the
others.

4. Distinguish an offer from the other stages:

Supply of information
Advetistments
Display of goods

5. Types of offer:

A bilateral offer takes place when both parties make promises to each
other. If the bilateral offer is accepted, a bilateral contract will be
created.

A unilateral offer takes place when only the one party makes a promise
to others.

6. Rules of acceptance:

Acceptance must be an unqualified assent to the terms of the offer

[ final]
Acceptance must be an identical terms [ mirror image]

Acceptance must be communicated in actual facts in the offeror or his

agent

7. Counter offer:

The offeree is expected to accept the exact terms of the offer and should
not have introduced different terms . it amounted to counter offer

A counter offer would terminate the original offer and the position of
the parties would also change

A counter offer should be distinguished from request to further

information

Remember:

 Without an offer there can be no acceptance.

 A counter-offer will revoke existing offers;
 Requests for information do not revoke offers.
 To determine whether something
communicated by the offeree is either a
counter-offer or request for information. 
Always examine whether to give effect to the
communication, the terms of the offer have to
change, as that is the key distinction.
  Cross-offers cannot amount to acceptance.

8. Postal rule:
Where postage is considered a prescribed means of
communication between the parties, effective acceptance occurs at
the moment of postage

9. Issues to consider with the postal rule:

Can an offer still be accepted if the acceptance letter itself does
not arrive?

If the letter does not arrive due to the fault of the offeree, is the
acceptance still effectively communicated?

Remember:

 It must be reasonable to accept the offer

through the post.
 If all the formalities surrounding the letter and
its correct postage are met, then whether it
arrives is immaterial.
 The offeror can exclude postage as a
communication method.
 The offeror can expressly/impliedly rescind the
postal rule