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offer and acceptance (auctions ((without reserve) : the auctioneer makes a…
offer and acceptance
auctions
Payne v Cave [1789]: court held that Mr Cave was entitled to withdraw his offer at any time before auctioneer accepted it
the auctioneer's request for bids was an invitation to treat, each bid constituted an offer which could be withdrawn at any time until it's accepted.
(without reserve) : the auctioneer makes a unilateral offer to sell goods and that offer is then accepted by the person who makes the highest bid at the auction
Barry v Davies [2000] the holding of an auction sale without a reserve is an offer by the auctioneer to sell to the highest bidder
(with reserve): an auction with a reserve price the auctioneer is making an invitation to treat not an offer
the offer is made by the person who makes a bid for the lot: the auctioneer accepts bid on the fall of hammer
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tenders generally, an invitation to tender will constitute an invitation to treat and not an offer
Spencer v Harding [1870] : if it asks for tenders for the supply of goods of a specified type, it is not an offer because there is no promise to order anything
some cases where courts have concluded the request for tenders did contain an offer : Harvela Investment Ltd v Royal Trust Co. of Canada [1985]
defendants telexed two parties inviting them to submit tenders for the purchase of some shares and stated 'we bind ourselves to accept the highest offer
held: the telex was a unilateral offer to accept the highest bid
counter-offers do not constitute an acceptance
an offer made in reply to an offer and its effect is to destroy the original offer
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if offeree requests further information before accepting, this will not constitute a counter offer
Stevenson v McLean [1880] : did not make counter offer, mere enquiry - binding contract
OFFER definition: "an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the person to whom it is addressed" - Treitel
- offer must be firm- i.e. not a negotiating point
- offer must be communicated to be effective
- offer must be distinguished from:
invitation to treat
supplying information
declaring an intention
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acceptance can be verbal, in writing or inferred from conduct
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