CLAWLegalEnvironmentofBusinessSemestermid-semestertest.docVIP

Agreement/intension/consideration  PAGE 5 Offer Offer – firm promise to do something or refrain from doing something in exchange for a promise with intention that it shall become binding on acceptance Offer may be described as the indication by one person to another of his willingness to enter into a contract with him on certain terms. In understanding the concept of offer it is necessary to distinguish between making: An offer and merely indicating a possible course of future conduct An offer and an invitation to treat; and An offer and conduct that is merely part of the negotiations. At the time of formation of a bilateral contract, the obligations of both parties are to be performed. In other words, in a bilateral contract, the obligations of both parties are executory at the time of formation. In the case of a unilateral contract, the obligations of one party (the offeree) are executed at the time of formation while the obligations of the other party ( the offeror ) are executory. P252 An offer can lead to a binding agreement only if the offer identifies the terms of the proposed agreement with sufficient certainty. P253 1. Offer is not a mere request for information [s8] 2. Offer is not an invitation to deal/treat: advertising, auctions and tenders [s11,s14] 3. offer is not conduct that is merely part of the negotiations Case nameNo.Key wordslocationCarlill v Carbolic Smokeball[1893] 1 QB 256 [戒烟丸]Offeror’s intention Offer to the world Unilateral offer (exception)Topic3: s4-s8Harvey v Facey [1893] AC 552 [Bumper Hall Pen]1.Request for information, Topic3: s9-s10Australian Woollen Mills Pty Ltd v The Commonwealth(1954) 92 CLR 424 (High Court) [Subsidy for wool]1.Statement of policy issued by governmentP252Case nameNo.Key wordslocationPharmaceutical Society (GB) v Boots Cash Chemists [1952] 2 QB 198 [pharmacy]2.Display of items on shelves was not an offer, but merely an invitation to dealTopic3: s12-s13Termination of Offer[s15]