Case Study: Crazy Festive Costumes Ltd

An offeror will have made an offer where it appears to a reasonable person in the position of the offeree that an offer was intended.

An advertisement involving a transaction in goods is an offer when it invites particular action, and when it is clear, definite, and explicit and leaves nothing open for negotiation.

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can

The offer and acceptance model is flawed- only an agreement is necessary. In order to fully comprehend this statement, we must first establish what constitutes and offer and what constitutes acceptance. “An offer is a statement by one party of willingness to enter into a contract on stated terms, provided that these terms are, in turn, accepted by the party to whom the offer is addressed”. Acceptance is “…an unqualified expression of ascent to the terms proposed by the offeror”. The “Offer and acceptance model” is based on the court’s adopt the “mirror image” rule of contractual formation. Applying the definitions stated above, we can take this to mean that there must be a clear and unequivocal offer which must be matched by an equally

The first issue to be addressed is whether Abigail’s advertisement for the collection was an offer or an invitation to treat; establishing this will aid our understanding of what Abigail’s position is in terms of her contractual obligation. Advertisements are mostly invitations to treat rather than an offer. The language of Abigail’s advertisement is imperative in trying to determine whether this is an invitation to treat or an offer. In the case, Gibson v Manchester City Council (1979), the council used the wording ‘might’ therefore the court held this advertisement to be an invitation to treat rather than an offer. Paradoxically, in Storer v Manchester City Council (1974) the title of the document read ‘agreement to sale’ therefore this constituted an offer. On balance, Abigail’s advertisement is more akin to that of Gibson v Manchester City Council insofar as she uses phrases such as ‘or near offer’ and ‘or, telephone me, if you prefer’.

1. They ask for offers which the proposer has a right to accept or reject as he pleases.

Offer: “Offer has a special meaning in contract law. An offer exists where one person indicates to another a willingness to enter into a binding agreement on certain terms.” (Sweeney, Reilly, & Coleman, 2013). An offer is considered as a proposal from the offeror that contains some certain terms, which can be accepted or rejected by the offeree. An offer must be escorted by an aim to be legally bound. In the given case, an offer was emailed to John, the owner of Office Supply from CompyHelp’s salesperson Sophie. Offer is not a request for information. It was an offer not an invitation or an advertisement (Partridge V Crittenden [1968] 1 WLR 1204).

An invitation to treat is the initial stage in a transaction in which one party invites the other to make an offer.

In this problem Finnin, McPherson and Wright (FMW) expressed to negotiate on buying the Honda-Toyota dealership on Lindsay. Based on the proposed agreement, FMW should pay a certain amount of $1.1million of the stock of Lindsay. And so, this case should be based under the common law. Common law governs the contracts for services, intangible assets and other contracts not governed by the Uniform Commercial Code (Mallor, Barnes, Bowers, Langvardt, 2013). Formation of the contract under the common law includes an offer, acceptance and consideration. And in order for an offer to be binding the offeree (the person to whom the offer is made) must accept the offer. An offer gives the power of acceptance to another party and includes the agreements essential elements, which must be definite and certain.

The purpose of a contract is to enforce the agreement that the parties have prepared and to define their privileges and tasks in accordance with that contract. The legislative should implement a legal contract as it is created, unless there are factors that impede its enforcement. It is the purpose for the declaration to advance the improvement of agreements between proficient gatherings for lawful bases .As a universal statute, contracts by able parties, justifiably prepared, are compelling and enforceable. Persons to an agreement are constrained by the procurements to which they have settled. Various proponents form the configuration of a lawful contract which consists of offer, negotiation, advertisements, checking mistakes, acceptance of offer, competent parties, mental and social capacity, subject matter, content, consideration, legalities, and statute of frauds. In this paper however, we will discuss the concepts of offer, acceptance, legal consideration, capacity, and legality of purpose.

Invitation to treat is an invitation to another person to make an offer. An ‘offer’ can be converted into a contract by acceptance, provided the other requirements of vailed contract are present but an ‘invitation’ to treat cannot be ‘accepted’

It is important to differentiate between offer and invitation to treat based on the intention of parties. For instance, the intention of whether the maker of the statement intend to bound by the acceptance of his terms of the proposal without further negotiation, if yes then it can be said he has made the proposal. In the other side, we need to see whether he intend his statement to be the part to continue the negotiation process, if yes then he has made the invitation to threat. One of the circumstance of ITT is an advertisement which attracts the other party to make an offer based on the information inserted in newspaper or magazine. In the case of Partridge v. Crittenden [1986] 2 A11 ER 421, D inserted an advertisement in a magazine for caged bird enthusiasts stating that he had finches for sale at $25each.D was prosecuted and convicted as he makes its illegal to offer finches for sale .D appealed. On appeal, the court held that he had been convicted wrongly as that the advertisement is not an offer but merely is an

The ‘Expression’ or the offer can be advertised in many forms for example newspaper, fax, e-mail and letter. The main stipulation that must be adhered to in any forms of expression is that it must communicate the terms on which the person who made the offer is willing to contract.

Invitation to Treat: Described by Macantile (2012) as “expression of willingness to negotiate”, an offeror is not bound to an agreement from an invitation to treat. For example, “the display of goods; the advertisement of a price; and an invitation for tenders” identify some types of invitation to treat. This recognises an opportunity to negotiate, where the “inviter can change his or her mind,” before finally accepting, describes Macantile (2012).