In Gibson vs. Manchester city council the House of Lords emphasized the importance of identifying an offer and acceptance when deciding whether the parties reached an agreement.
An offer is a firm undertaking to be bound in the every its terms are accepted by the other. It must be final, certain and unambiguous. There must be no further negotiations or discussion required.
The nature of an offer was discussed in Gibson vs. Manchester City Council. The council decided to sell the council houses to the tenants. The council then decided not to sell the houses .The council sent Gibson a document which asked him to make a formal invitation to buy and stated that the Council “may be prepared to sell’ the house to him. Gibson signed the document and returned it. The House of Lords held that a contract had not been concluded because the council had not made an offer capable of being accepted. Lord Diplock stated: The words “may be prepared to sell” are fatal…so is the