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Formation - Coggle Diagram
Formation
Ending an Offer
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Refusal- The offer refuses the offer, the offer ends.
Counter Offer- Replying to an offer by changing elements of the original offer. The original offer ends. (Hyde v Wrench)
Request for Information- This is not a counter offer and does not terminate the offer, it is just asking for more information. (Stevenson v Mclean)
Lapse of Time- The offer can end if it was only open for a limited time or if a "reasonable" amount of time has passed. (Ramsgate Hotel v Montefiroe)
Death- Offers that are personal in nature end upon death of the offeror. If it is an offer of general nature, the offeror's estate can honour it. (Bradbury v Morgan)
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Evaluation
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2. Duration of an offer
If the length of time is stated, it can be changed by the offeror which can be seen as unfair- shown in Routledge v Grant.
If the length of time isn't stated, the offer is open for a "reasonable time" but there is no clear indication for what reasonable is and is different in ever scenario- In Ramsgate Hotel v Montefiore the offer was held void as it was open for too long.
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4. Acceptance
An Offer has to be communicated and so does the acceptance, so silence isn't sufficient: Felthouse v Bindley. This is a positive as it protects people from entering into contracts they don't mean to.
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Consideration
Must show that C has bought the D's promise by doing, giving or promising something in return.
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Must be sufficient, but need to be adequate. Sufficient= real, tangible and holds some value. (Nestle v Chappel)
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Offer
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Bilateral offer- between two people, only they can accept. (Storer v Manchester City council)
Unilateral offer- to the world, anyone can accept (Carlill v Carbolic Smoke ball)
Acceptance
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Postal Rule- once a letter of acceptance has been posted, then acceptance has been communicated. (Adams v Lindsell)
Postal rule will apply if the offer was made by post or the offeror say's that it is okay to use it. It must also be correctly addressed and stamped.
Postal rule will not apply if the offeror stated it won't apply or if the offeree is aware of delays.
Modern methods of communication - acceptance is effective as soon as it is received. (Entores v Miles Far East corp)
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