Contract Law - Offer

There are four elements of a contract:
Offer
Acceptance
Consideration
Intention to create legal relations (ICLR)

An offer is a definite promise to be bound if certain terms are accepted. This can be distinguished from willingness to enter into negotiations known, in legal terms, as an invitation to treat.

An offer can be direct or it can be to the world at large
Carlill v Carbolic Smokeball Co [1893].

An invitation to treat is not an offer; Timothy v Simpson (1834). Invitations to treat are commonly found in advertisements (Partridge v Crittenden [1968]) and goods that are on display in a shop (Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1952]; Fisher v Bell [1952]).

Invitations to treat can be identified by whether the parties are still negotiating (Harvey v Facey [1893]) as opposed to where there is clear offer and acceptance (Bigg v Boyd Gibbins Ltd [1971]).

While language is important, just because the word 'offer' is used this is not conclusive in and of itself (Datec Electronic Holdings Ltd v United Parcels Service Ltd [2007]).

Auctions are a unique situation. Bids are seen as offers that are accepted when the auctioneer bangs his gavel (Payne v Cave (1789)).

If an auction is without reserve then this amounts to a collateral contract with the highest bidder (Barry v Heathcote Ball & Co (Commercial Auctions) Ltd [2001]).

Advertisements that goods are to be sold on a certain date are not binding (Harris v Nickerson (1873)).

[chloeh]

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These videos are great, so much easier to digest than my lecturers who waffle on so much
Thank you for making these

[amycable]

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[rosieupton]

Starting contract law and was finding a bit overwhelming. Thanks for this video, it has made me feel more confident already. Looking forward to the next ones.

[musicisthrough]

Feel blessed for having your contract law series just in time! Thank you Marcus!

[Valentine-osbg]

Thank you Marcus, just began contract law in 2nd year OU law degree, this is perfect material for revision

[FPLSpagBol]

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[EG-ldot]

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[legalafrorhetorics]

Glad I found you you make these concepts so easy to understand x

[kristinevictorio]

Thank you so much for making this video!

[gustavo]

Thanks for the videos I would add something about how they are formed verbally and written. Thanks :D

[Aiikaz]

Hi Marcus, just a quick question to settle a debate I am having! Would the phrase, "The best price I could do would be ____" constitute an offer or would it amount as an invitation to treat? I think it amounts as an invitation to treat as it is a query relating to price of goods, but I can't find any case law backing this up apart from a stretch with the case of Gibson v Manchester [1979] where the phrasing of the council/seller ("may be prepared to sell") was seen as an invitation to treat - however I'm not sure if this applies either as it would seem the judgement was largely based upon the lack of a price set whereas in the scenario above a price is mentioned.

[petersmith]

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[siena]

Hi, thank you for this informative video! I wanted to ask if you had any advice for answering problem questions where there is a tender involved. If for instance, the question asks whether there is a contract between A and B but this is in the context of tender where A asked for tenders from different people and B is one of them. Do we begin by saying this is an invitation to treat and the offer is actually coming from B? I hope this made sense.

[fqulzam]

Hello Marcus. I was wondering if you could explain the Currie v Misa (1874) case please.