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Lecture-4

Law of Contracts-I

Kinds of Offer General Offer and Particular (Specific) Offer Weeks v Tybald (1605) 75 ER 982. Carlill v Carbolic Smoke Ball Co (1893) 1QB 256. Acceptance by performing conditions or receiving consideration (S. 8): Harbhajan Lal v Harcharan Lal AIR 1925 All 539.
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Law of Contracts-I

Implied and Express Promise (S. 9) Upton Rural District Council v Powell (1942) 1 All ER 220.

Cross Offers
Tinn v Hoffmann (1873) 29 LT 271.

Standing/Open/Continuing Offer
o Tender for the supply of goods and services
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Law of Contracts-I

Offer and Invitation to Treat


An offer is an expression of a willingness (to contract) on certain terms made with the intention that a binding agreement will exist once the offer is accepted. If an individual is not willing to implement terms, but merely seeking to initiate negotiations, this is not an offer but an invitation to treat.

Harvey v Facey (1893) AC 552. Mc Pherson v Appana AIR 1951 184: 1951 SCR 161. Adikanda Biswal v Bhubaneshwar Development Authority AIR 2006 Ori 36. Badri Prasad v State of MP AIR 1970 SC 706.
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Some everyday situations which we might think are offers are, in fact, invitations to treat: Goods displayed in a shop window or on a shelf :
o When a book is placed in a shop window priced at xxx, the bookshop owner has made an invitation to treat. o When I pick up that book and take it to the till, I make the offer to buy the book for xxx. o When the person at the till takes my money, the shop accepts my offer, and a contract comes into being.

Law of Contracts-I

o Adverts basically work in the same way as the scenario above. Advertising something is like putting it in a shop window: o Invitation to tender for work: o Auctions:
o The original advertising of the auction is just an invitation to treat. o When I make a bid, I am making an offer. o When the hammer falls, the winning offer has been accepted. The seller now has a legally binding contract with the winning bidder (so long as there is no reserve price that hasnt been reached)
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Catalogues and Display of Goods cases: Grainger & Son v Gough (1896) AC 325,334. Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd (1952) 2 QB 795. Harris v Nickerson (1873) LR 8 QB.

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Law of Contracts-I
Expression of Interest (EOI) A call to potential providers of goods and/or services to register interest in supplying them. Commonly a document describing requirements or specifications and seeking information from potential providers that demonstrate their ability to meet those requirements. Expression of Interest (EOI) provides a starting point in the overall procurement process. Government agencies may publish an Expression of Interest to attract potential bidders and to short-list potential bidders. The EOI is an optional early phase in the tendering process. Prospective tenderers express interest as described in the advertisement, resulting in the tender documents being sent to the prospective tenderer.
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Law of Contracts-I
Purpose of Expression of Interest: o Invite prospective consultants or contractors to make submissions; o Enable contractors and vendors to state their ability to meet specific project requirements, either individually or by combining their abilities; o Enable contractors and vendors to be assessed for inclusion or otherwise in a short list for invitation to submit a consultancy proposal or a tender.

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