2009年11月22日星期日

Offer and accept


Offer
Each contract requires an offer and Acceptance of that offer。
To constitute a contract, there must be an offer by one person to another and an acceptance of that offer by the person to whom it is made. A mere statement of a person's intention, or a declaration of his willingness to enter into negotiations is not an offer and cannot be accepted so as to form a valid contract
An
offer must be a clear, unequivocal and direct approach to another party to contract.

Acceptance
Acceptance validates the contract; it gives it life. It is at that moment that a contract exists; that there is consensus ad idem(assuming a valid offer and consideration). It also must be clear, unequivocal, unconditional and made by the person to whom the offer is intended.
It is not enough to say that you find the offer to be "agreeable"; you must "accept" the offer although your acceptance can be implied by your conduct. It must also be brought to the direct attention of the offeror before a valid contract exists.

Goods displayed in a shop window or on a shelf.
When a book is placed in a shop window priced at RM9, the bookshop owner has made an invitation to treat(ITT)
When I pick up that book and take it to the till, I make the offer to buy the book for 9RM
When the person at the till takes my money, the shop accepts my offer, and a contract comes into being.
Adverts basically work in the same way as the scenario above. Advertising something is like putting it in a shop window.

More details:
http://tutor2u.net/law/notes/contract-conditions-warranties.html
http://www.e-lawresources.co.uk/Offer-and-acceptance.php

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