Contract problem question.

Hey guys doing my first piece of contract coursework. Just came here for some clarity to help me distinguish whether or not this is an offer or an invitation to treat. Here's the opening paragraph.

On Monday 1st December, Martin advertised a rare train model for sale in the local newspaper. Martin wanted a quick sale: his advert states he wanted "offers around £8,000", that the "best offer notified will secure the train" and that "the offer remained open until the end of the week"

Would you say that's an invitation to treat or an offer? I can see reasons for and against but would appreciate a second opinion.

Thanks :smile:

~LJDLM

Invitation to treat

This is what I thought it was but my friend put doubt in my head, as there's a specified time limit, which apparently implies that it's an offer. :confused:

Reply 3

jjarvis

Original post by LJDLM

This is what I thought it was but my friend put doubt in my head, as there's a specified time limit, which apparently implies that it's an offer. :confused:

Adverts are usually invitations to treat (see Partridge v Crittenden), but they can sometimes include an offer. This was the case in Carlill v Carbolic Smoke Ball.

Consider again the text of the problem: His advert states he wanted "offers around £8,000", that the "best offer notified will secure the train" and that "the offer remained open until the end of the week".

Has the advertiser made any undertaking? Does he intend, under certain circumstances, to be bound?

Reply 4

LJDLM

Original post by jjarvis

He hasn't made any undertakings. That's the opening paragraph to the problem. The rest simply involves potential customers making offers to him and revocations etc. Would the full question help?

Thanks.

Reply 5

jjarvis

Original post by LJDLM

He has said that the "best offer notified will secure the train". Compare this wording with Harvela. Are you sure he hasn't undertaken to do anything?

Reply 6

LJDLM

Original post by jjarvis

He has said that the "best offer notified will secure the train". Compare this wording with Harvela. Are you sure he hasn't undertaken to do anything?

I've sent you the problem in your private messages. I can't say I know if he's undertaken to do anything as I'm still coming to terms with all the terminology.

Thanks.

Reply 7

jjarvis

Original post by LJDLM

I've sent you the problem in your private messages. I can't say I know if he's undertaken to do anything as I'm still coming to terms with all the terminology.

Thanks.

I've responded to your PM. When I said "undertaken", I simply meant that he had made a promise to accept the best offer.

Reply 8

Huskaris

I would argue it is a unilateral offer... See Carlill v Carbollic Smoke ball. jjarvis pretty much has it covered.
I would argue that by saying that the highest bid will get the item, and setting a time limit of the offer I would say further promotes this. But I'm merely doing business law as an elective in an Investment and Financial Risk Management degree, not a BA in Law at Cambridge.

Reply 9

jjarvis

Original post by Huskaris

You're probably right here. If there weren't a time limit, there would probably be an implied reasonable time requirement.

Reply 10

MissAdj

Hi

I have the same question for my contract law essay.
I was of the opinion that it is an offer because of the wording ' best offer notified will secure the train' and therefore i thought he was willing to be bound by the highest price offered to him by the end of the week.

However, everyone i have spoken to think that it is an ITT as he is inviting people to make offers as he states ' offers around 8000'

What do you think? Is the wordingstrong enough for it to be construed to be an offer capable of acceptance?;-)

Reply 11

Huskaris

Original post by MissAdj

Basically.
Yes
But
So.

Say (for example) It could be seen as an ITT, then explain why it could be an Offer (list things that make an offer etc) then say why on the balance you think it is one or the other.

Obviously the whole point is that it is a difficult one to decide, so you have to discuss the aspects of both that it has.

Reply 12

jjarvis

Original post by Huskaris

I'd probably approach the question more directly--explain that adverts are usually ITT, but can be offers where there is a clear intent to be bound and an undertaking to accept a certain offer, and that this is the case here.