Offer And An Invitation To Treat
According to Wikipedia Encyclopedia (2006), an offer is an expression of willingness to enter into a contract on certain terms. It is made with the intention that it shall be binding as soon as it is accepted by the person or persons it is addressed to, that is the offeree. It can also be defined as an indication to enter into a contract with one or more persons on certain terms. At the time the offer is made the terms of the contract are fixed or are capable of being fixed. When an offer is made, it is done with every intention of it becoming binding on the offerer as soon as it is accepted by the offeree.
The indication of the willingness of parties to enter into a contract may be an expressed offer in writing and contained in letters, newspaper, faxed document, email or is inferred or implied from someone’s behavior or conduct, as long as it communicates the basis on which the offerer is prepared to contract. Whether the offer is expressed or implied it must satisfy certain criteria in order for it to be considered valid. If the offer is not valid it will leave both contracting parties with something which will not be enforced by the courts of law.
An offer is a definite promise to be board on certain specific terms. It must be clear, complete and final. It should not be vague if it is; it will not be enforced since the contract lacks precesion on the terms on which the parties agreed. An offer cannot be vague in Guthing V. Lynn (1831) case where the offerer promised to pay a further sum for a horse if it was “lucky”, this is impossible to ascertain the precise terms on which the parties had agreed. If an apparently vague offer is capable of being made certain by reference to previous dealings between the parties or within the trade or by implying terms, then it will be regarded as certain. This is evident in Hillas and Acros Ltd (1982) case where a contract for the sale of timber described to be a fair specification. The offer was vague, however both...
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