402

CL - LECTURE 3 05/10/21

OFFER

‘An offer is a statement to the effect that the person making it (the offeror) is willing to
contract on the terms stated, as soon as these are accepted by the person to whom the offer
is addressed (the offeree).’
Treitel, The Law of Contract

- The existence of an offer is subject to an objective test, so even if the offer is made
inadvertently, it will be capable of acceptance providing that a reasonable person
would be induced to believe that the offeror intended to make the offer.

- An offer can be made in writing, by word of mouth or by conduct.

- The offer can be made to an individual, a group of persons or to anyone who cares
to accept it.

INVITATIONS TO TREAT
1. DISPLAY OF GOODS FOR SALE:

2. A MERE SUPPLY OF INFORMATION

3. AUCTIONS:
- Advert for forthcoming auction amounts to a statement of intention and not an
offer.

4. TENDERS
A request or advertisement for tenders (inviting parties to make offers to supply goods or
services) is generally regarded as an invitation to treat, as there is no obligation to accept
any of the tenders put forward.
402

Tenders may be of 2 types:

- A definite offer - once accepted this leads to a legally binding contract.
- A standing offer, eg. to supply goods or services as and when required in which case
a new contract is formed each time an order is placed.
Sealed Tender - the offer to buy is placed in a sealed envelope
Referential bid - A referential bid is a bid or tender for the purchase or supply of goods or
services whose value is stated by reference to the bids or tenders received from competitors
(if any).

CA: therefore, as Blackpool and Fylde tender has not been considered, entitled to
compensation of loss of opportunity

Termination of the Offer

An offer comes to an end when:
- It is accepted - that results in a legally binding contract
- It is rejected or a counteroffer is made by the offeree (changes terms) therefore the
original offer is no longer on the table (see Hyde v Wrench (1840))
- The offer lapses through:

1. Time - where no time limit is specified, after a reasonable time - Ramsgate Victoria
Hotel Co v Montefiore (1866) L.R.1 Ex.109
2. Death of the offeror or the offeree before acceptance
3. Failure of a condition - expresses or implied.

Held: ‘There was a binding contract, because revocation could only take effect on
communication/ receipt of the defendant’s(D) letter but the acceptance by telegram took
affect as soon as it was sent 9 days before the revocation was received. By the time D’s letter
of revocation was received, a contract had already been made.’

4. It is REVOKED:
- An offer can be revoked (withdrawn) by the offeror at any time before acceptance -
Payne v Cave (1789) 3 Term Rep 148
- Another way to revoke offer is through a reliable third party.
402

Held: ‘The defendants offer had already been revoked by the communication from the fourth
person, so there was no contract. On hearing the news from the fourth person, the claimant
knew the D would no longer minded to sell the property to him, as plainly and clearly as if
the D had told him in so many ways. Regardless of this division D still had the right to
withdraw the offer at any time.’

If you make a unilateral offer – how can you withdraw it?

Shuey v USA (1875):
Persuasive Authority
- Publishing revocation in the same newspaper in which offer originally appeared,
although revocation may not be read
When is revocation possible?
- An offer for a unilateral