Legal Environment

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  Legal Environment
  Contract 3
  Offers Part 2
  

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  2
  Learning Objectives
  Quick Review
  Miscellaneous Points on Offers
  Who is the Offeree?
  Knowledge of the Offer
  Rejection of an Offer
  Cancelling an Offer
  Lapsing of an Offer
  

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  Quick Review
  An offer is made by an offeror to an offeree
  The offeror agrees to do something
  The contract is made when the offeree accepts the offer
  

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  Who is the offeree?
  An offer can be made to
  A particular person
  A group of people
  The whole world
  

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  Who is the offeree? (cont.)
  If the offer is made to a particular person (or group) then only that person (or group) may accept the offer
  Eg: If I offer to sell my car to Jim then only Jim may accept that offer. John cannot accept.
  

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  Who is the offeree? (cont.)
  If the offer is made to the whole world then anyone can accept
  We saw an example of this in Carlill v. Carbolic Smoke Ball Company
  Mrs Carlill accepted the offer by her actions
  She bought and used the medicine
  

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  Knowledge of the offer
  You have to know about the offer before you can accept it
  If you find my lost dog and return it without knowing that I had offered to pay £100 to the person who found it, then you cannot later claim the reward when a friend tells you about it
  

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  Rejection of Offers
  If the offeree rejects the offer then the offer is dead
  The offeree cannot later try to accept the original offer
  A counter-offer (ie if the offeree tries to change the terms of the offer) also kills the original offer
  More about this when we look at acceptance
  

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  Cancellation of Offers
  The technical term for cancellation of an offer is revocation
  An offeror can revoke the offer at any time before it is accepted by the offeree
  Once it is revoked the offer can no longer be accepted by the offeree
  The offeror must make sure that the offeree knows that the offer has been revoked
  

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  Cancellation of Offers (cont.)
  The offeror can inform the offeree of the revocation using a reliable third party
  Or the offeree can find out from a reliable third party
  A promise to keep an offer open until a certain time needs to have another contract which has that promise
  And the offeree must pay something for that
  

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  Cancellation of Offers (cont.)
  A unilateral contract is one where one person (the offeror) promises something in return for some action by someone else (the offeree)
  Once the offeree has started to do perform the action, the offeror cannot revoke the contract
  Eg Carlill v. Carbolic Smoke Ball Company
  It would be unfair if the offeror could revoke the contract just before the offeree has completed the required action
  

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  Lapse of Offers
  It is not possible to accept an offer once the offer has ended.
  The offer is said to have lapsed
  Offers lapse
  At the end of a specified period
  After a reasonable time
  

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  At the end of a specified period
  The offeror can set a time limit for acceptance in the offer
  The parties can also agree a time limit
  For example, I could offer to sell you my car for £10,000 but you must accept before 2pm on Friday
  After 2pm on Friday the offer will lapse and you will not be able to accept it
  

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  After a reasonable time
  If no time limit is set in the offer, then the offer will lapse after a reasonable time
  What is reasonable depends on the circumstances of each contract
  If you are the offeree it may be wise not to wait to long to accept
  Or at least check with the offeror if the offer is still open
  

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  Summary
  An offer can be made to
  A particular person
  A group of people
  The whole world
  The offeree must know about the offer to be able to accept it
  Rejecting an offer (or making a counter-offer) ends the offer
  

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  Summary (cont.)
  Cancelling an offer is known as revocation
  The offeror can revoke an offer at any time before acceptance so long as the offeree is told about it
  Unilateral contracts cannot be revoked if the offeree has started to perform the required action
  

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  Summary (cont.)
  Contracts lapse (ie end)
  At the end of a specified period
  After a reasonable time
  

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  Reading
  Chapter 5
  Page 114 section 5.2.2
  Page 115 sections 5.2.3 and 5.2.4
  Pages 116-7 section 5.2.5
  Page 117 section 5.2.6 (first two points)