Offer or proposal (ss. 2(a), 3-6): essentials, general and specific offers, invitation to treat, cross and counter offers, communication, revocation and lapse
LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit I: Offer / proposal: · LLB · 60 min
This lecture covers topics 2 to 6 of Unit I: the definition of a proposal in s. 2(a) and the rules for a valid offer, express and implied offers, general and specific offers (Carlill), the line between an offer and an invitation to treat (Harvey v. Facey, Boots, auctions, tenders, advertisements), cross offers and counter offers (Hyde v. Wrench), standing offers, communication of a proposal under ss. 3-4 (Lalman Shukla), the intention to create legal relations (Balfour, Simpkins v. Pays), and revocation and lapse of an offer under ss. 5-6. It ends with the 2023-24 problem on a letter of rejection followed by a telephoned acceptance.
Objectives
- Define a proposal under s. 2(a) and list the rules of a valid offer with the leading case for each
- Distinguish an offer from an invitation to treat in shops, price quotations, auctions, tenders and advertisements
- Distinguish general from specific offers and cross offers from counter offers
- Explain when the communication of a proposal is complete (ss. 3-4) and why knowledge of the offer matters
- Apply ss. 5-6 to decide whether an offer has been revoked or has lapsed before acceptance
Slides
- What s. 2(a) says: the proposal
- Rules of a valid offer (2017-18 Q(B)1, 2022-23 Q1(e))
- General and specific offers: Carlill v. Carbolic Smoke Ball Co.
- Offer v invitation to treat (2022-23 Q1(d))
- Cross offers and counter offers (2017-18 Q(A)1, (A)7; 2019-20 Q(A)12; 2022-23 Q1(e))
- Standing offers, tenders and auctions
- Communication of a proposal: ss. 3 and 4; Lalman Shukla v. Gauri Dutt
- Intention to create legal relations: Balfour and Simpkins v. Pays
- Revocation of a proposal: ss. 5 and 6 (2017-18 Q(A)5, (A)6)
- Problem: rejection by letter, then acceptance by telephone (2023-24 Q4(b))
- How the examiner asks it
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