offer and a bid

What is the difference between an offer and a bid according to the contract act?

Hi.

Here is offer and invitation to treat, this includes bids (I'm assuming you mean auction situations as shown in Payne v Cave). If this is useful to you then try www.aqalaw02.blogspot.co.uk :smile:

Offer and Invitation to Treat

Offer: An offer is a proposal put from one party to another. It must be intended to be legally binding if it is to be a valid part of a contract. The offerer comes from the offeror and goes to the offeree. The terms of the offer must be certain.

Gibson v Manchester CC: Here the suggestion to buy a council house was not an offer as the word may indicated a lack of certainty and readiness to make a contract.

Invitation to Treat: An invitation to treat is not recognised by law as part of a legally binding contract, it is not a valid offer but rather the initial negotiations of a contract. It is an expression of willingness to negotiate between the parties, the other party can then consider the invitation to treat and either reject it or make an offer based upon it.

Fisher v Bell: Held flick knives in windows were an invitation to treat not an offer for sale as the shopkeeper will choose if he wishes to sell the goods to the customer.

Partridge v Crittenden: Held the advert for birds for sale was an invitation to treat as the customers made the offer when they enquired.

Payne v Cave: Held the auctioneer makes an invitation to treat then the defendant makes the offer which the auctioneer chooses to accept.

Reward Posters: Reward posters are offers not invitations to treat, as the offer is made of a reward based on the completion of what is stated on the poster.

Carlill v Carbolic Smoke Balls: Held the reward poster is an offer, Mrs Carlill accepts the offer when she uses the balls as stated, creating a legally binding contract.

OP

Bump! anyone?

OP

Original post by amspawforth

Hi.

Here is offer and invitation to treat, this includes bids (I'm assuming you mean auction situations as shown in Payne v Cave). If this is useful to you then try www.aqalaw02.blogspot.co.uk :smile:

Offer and Invitation to Treat

Offer: An offer is a proposal put from one party to another. It must be intended to be legally binding if it is to be a valid part of a contract. The offerer comes from the offeror and goes to the offeree. The terms of the offer must be certain.

Gibson v Manchester CC: Here the suggestion to buy a council house was not an offer as the word may indicated a lack of certainty and readiness to make a contract.

Invitation to Treat: An invitation to treat is not recognised by law as part of a legally binding contract, it is not a valid offer but rather the initial negotiations of a contract. It is an expression of willingness to negotiate between the parties, the other party can then consider the invitation to treat and either reject it or make an offer based upon it.

Fisher v Bell: Held flick knives in windows were an invitation to treat not an offer for sale as the shopkeeper will choose if he wishes to sell the goods to the customer.

Partridge v Crittenden: Held the advert for birds for sale was an invitation to treat as the customers made the offer when they enquired.

Payne v Cave: Held the auctioneer makes an invitation to treat then the defendant makes the offer which the auctioneer chooses to accept.

Reward Posters: Reward posters are offers not invitations to treat, as the offer is made of a reward based on the completion of what is stated on the poster.

Carlill v Carbolic Smoke Balls: Held the reward poster is an offer, Mrs Carlill accepts the offer when she uses the balls as stated, creating a legally binding contract.

Thanks for your reply. I am meant to simply define what an offer is and then refer to the contract act. I am then meant to define what a bid is and then refer this to the contract act.

offer and a bid

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