1Lecture1OfferandacceptanceIWhatisanoffer?Keyprinciples:Anofferisastatementwhichobjectivelyindicatesthattheofferorispreparedtocontractonspecifiedterms.HarveyvFacey[1893]A.C.552p7.Fact:P:“WillyousellusBumperHallPen?Telegraphlowestcashprice”D:“Lowestprice–900pounds”P:“Weagreetobuyforthesumof900poundsaskedbyyou”Drefusedtosell.Held:Disnotbound.P’sfirsttelegramaskedtwoquestionsandDansweredonlythesecond.Dhadmadenopromise,expressorimpliedtosell.Astatementoftheminimumpriceatwhichapartymaybewillingtosellwillnotamounttoanoffer.GibsonvManchesterCityCouncil[1979]1WLR294p7.Fact:Councilhadapolicyofsellingcouncilhousestotenant.“Thecouncilmaybepreparedtosellthehousetoyou”andinvitedGibsontofillinaform.Gibsonfilledinbutcouncilrefusedtosell.Held:Nocontract.Thewords“maybepreparedtosell”arefataltothis.TheCouncildidnotmakeanofferbutonlyinvitedoffersandthetenantmadeafirmofferwhichwasrejectedbytheCouncil.Thetenant’sapplicationwasanofferratherthananacceptance.RecognizedinstancesofinvitationstotreatAdvertisementsKeyprinciples:Advertisementsarenormallyinvitationstotreatbecauseitisclearthattheadvertiserdoesnotintendtobebound.PartridgevCrittenden[1968]1W.L.R.1204Fact:Concernsanewspaperadvertisementthatcertainwildbirdsareavailableforsalefor25seach.Nodetailsastoquantity.Held:Theaddidnotamounttoanoffertosell.Exception:iftheadvertisementisunilateralCarlillvCarbolicSmokeBallCo.[1893]1QB256p35.Fact:Inanewspaperad,Dstatedthatitwouldpay£100toanypersonwhobecameillwithfluafterusingthesmokeballasdirectedandthattoshowitssincerityithaddeposited£1000inabankaccount.Pusedthesmokeball,butneverthelesscaughtflu.Held:theadwasanoffertotheworldwhichwasacceptedbyPwhensheusedthesmokeballasdirected.Shewasentitledtothe£100.ShopdisplaysKeyprinciples:thedisplayofgoodsforsaleonasupermarketshelfisaninvitationtotreat,andtheothertobuyismadebythecustomerpresentingthegoodstothecashier.FishervBell[1961]1QB394Facts:wherethedefendantwaschargedwiththeoffenceofofferingforasaleaflickknife.Held:Asageneralrule,displayofflickknifeinashopwindowisaninvitationtotreatandnotanoffer.PharmaceuticalSocietyofGreatBritainvBootsCashChemists[1953]1QB401p17.Facts:theDdisplayedmedicinesontheirshelveswhichunderstatutemustbesoldunderthesupervisionofaregisteredpharmacist.Inthisshop,thepharmacistcouldrefusetoallowthepurchaseatthecashdesk.Held:Puttingupgoodsontheshelvesofaself-serviceshopwasaninvitationtotreat.Therewasnosaleuntiltheshopkeeperacceptedthecustomer’soffertobuy.Themainpractical2consequenceofthisareunderthelawofcontract,shopsarenotboundtosellgoodsatthepriceindicatedandacustomercannotdemandtobuyaparticularitemondisplay.TendersKeyprinciples:acircularinvitingthesubmissionoftendersisnormallyaninvitationtotreatandthesubmissionofthetenderistheoffer.SpencervHarding(1870)LR5CP561p9.Facts:Thedefendantshaveacircularwherebytoofferforsalesomestocksbytenderandtobesoldatadiscountinonelot.Theplaintiffarguedthatthedefendanthastoselltothehighesttender.Held:Forthedefendant.Anofferforsaleinthetenderisjustaninvitationtotreat.Thereisnothingtosuggestthatthedefendantwillacceptthehighestbid.CityPolytechnicofHongKongvBlueCross(AsiaPacific)InsuranceLtd[1995]2HKLR103Facts:CityPolytechnic,throughaninsurancebroker,invitedtendersfromseveralinsurancecompaniestocoveritsemployees’medicalandlifeinsurance.Held:Itwasconfirmedthataninvitationtotenderisnomorethananintentiontoreceivebids.SituationswherethereisacontractualobligationtoacceptthemostcompetitivebidKeyprinciples:aninvitationtosubmittendersmayamounttoanofferwhereitisclearthatthesellerintendstoselltothehighestbidder.(Theinvitationtotendermayamounttoanofferoftheunilateraltypeifthatisthatwasintended)HarvelaInvestmentsvRoyalTrustofCanada[1986]AC207p13.Facts:D1invitedPandD2tomakesealedcompetitivebidsforaparcelofshares,stating“webindourselvestoaccept(thehighest)offer.Pbid$2175000andD2bid$2100000or$101000“inexcessofanyotheroffer.D1believedthattheywereboundtoacceptthebidofD2,asbeingthehighestbid.Held:theinvitationtotenderamountedtoanoffertoselltothehighestbidder,however,the“referential”bidofthetypeadoptedbyD2wasnotpermissibleinatransactionofthiskindandthereforeD1wasboundtoaccepttheP’sbid.(thethirdparty’sbidwasareferentialbidandwasnotavalidoffer.)AnobligationtoconsidertendersKeyprinciples:aninvitationtosubmittendersisanoffertoopenandconsiderallconfirmingtenderstogether.BlackpoolandFyldeAeroClubvBlackpoolBoroughCouncil[1990]1WLR1195p11.Facts:Dinvitedtendersforaconcessiontooperatepleasureflightsfromthelocalairport.Theletterstatedthat’Notenderwhichisreceivedafterthelastdateandtimespecified’wouldbeconsidered.P’stenderwaspostedbyhandintheD’sletterboxbeforethedeadlineexpired,butD’sstaffdidnotemptytheboxandtheP’stenderwasnotconsidered.Held:alltenderssubmittedwhichcompliedwiththetenderingprocedurewouldbeopenedandconsideredtogetherwiththeotherconformingtenders.Theinvitationtotenderwasaunilateralofferwasacceptedbythesubmissionofatender.ThecourtheldthatthedefendantswerecontractuallyboundtoconsidertheP’stender.Auctions3Keyprinciples:anadforanauctionisnormallyaninvitationtotreat,andthe