Contract Law
Introduction
A contract is formed when one of the parties has to accept an offer made by the other. Here, David places an advertisement in the local newspaper of a reward, £1000 for the safe return of each of his six cats. This shows he is making an offer to all the readers of the Daily Bungle. An offer is defined as follows:
“An offer is a statement of the terms upon which the offeror is prepared to be bound if acceptance is communicated while the offer remains alive1.”
The critical aspect of the definition of an offer is the will or intent of the offeror to be bound in contract by the terms of the offer. A statement that lacks such will is not an offer, but an invitation to treat. In Gibson v Manchester City Council, the statement “the corporation may be prepared to sell the house to you…” was found to be a mere invitation to treat whereas the statement “we are willing to sell” in Storer v Manchester City Council was said to be an offer. The general rule for advertisements is that they are considered as an invitation to treat, as mentioned in the case of Partridge v Crittenden [1968] 2 AII ER 421, HC QBD. The case is that “the appellant placed an advertisement in a magazine: “Bramblefinch cocks and hens, 25s. [25 shillings = £1.25] each”. He was charged with offering for sale of a wild bird, contrary to statute, but the High Court said he must be acquitted. The advertisement was an invitation to treat, not an offer to sell; with limited stick the advertiser could not reasonably intend to be bound to sell to all those who might accept. (If the advertiser indicated that was willing to sell only to the first person accepting, then there should be no problem.)”2 The readers of the Daily Bungle have a choice whether or not to be bound by the terms of the contract, which is the search for his cats. That being said, the advertisement placed by David is an invitation to treat.
For an agreement to form into a contract, acceptance has to be communicated. Acceptance
A contract is formed when one of the parties has to accept an offer made by the other. Here, David places an advertisement in the local newspaper of a reward, £1000 for the safe return of each of his six cats. This shows he is making an offer to all the readers of the Daily Bungle. An offer is defined as follows:
“An offer is a statement of the terms upon which the offeror is prepared to be bound if acceptance is communicated while the offer remains alive1.”
The critical aspect of the definition of an offer is the will or intent of the offeror to be bound in contract by the terms of the offer. A statement that lacks such will is not an offer, but an invitation to treat. In Gibson v Manchester City Council, the statement “the corporation may be prepared to sell the house to you…” was found to be a mere invitation to treat whereas the statement “we are willing to sell” in Storer v Manchester City Council was said to be an offer. The general rule for advertisements is that they are considered as an invitation to treat, as mentioned in the case of Partridge v Crittenden [1968] 2 AII ER 421, HC QBD. The case is that “the appellant placed an advertisement in a magazine: “Bramblefinch cocks and hens, 25s. [25 shillings = £1.25] each”. He was charged with offering for sale of a wild bird, contrary to statute, but the High Court said he must be acquitted. The advertisement was an invitation to treat, not an offer to sell; with limited stick the advertiser could not reasonably intend to be bound to sell to all those who might accept. (If the advertiser indicated that was willing to sell only to the first person accepting, then there should be no problem.)”2 The readers of the Daily Bungle have a choice whether or not to be bound by the terms of the contract, which is the search for his cats. That being said, the advertisement placed by David is an invitation to treat.
For an agreement to form into a contract, acceptance has to be communicated. Acceptance