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Offer or invitation to treat

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Offer or invitation to treat

  • This topic has 15 replies, 3 voices, and was last updated 1 month ago by MikeLittle.
Viewing 16 posts - 1 through 16 (of 16 total)
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  • February 17, 2023 at 5:22 pm #679053
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    Sir for example an offeror states :
    “I would like to offer 500 units of a product abc at a price of £100 per unit.”
    Sir my doubt is whether it will be offer or invitation to treat
    I think it is invitation to treat as it is NOT ADRESSED TO A SPECIFIC PERSON.

    February 17, 2023 at 7:22 pm #679059
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    But we know that, in ‘reward’ situations, it IS possible to make an offer to the World at large

    In this example that you have given me, I’m leaning towards it being an offer rather than an invitation to treat

    OK?

    February 18, 2023 at 3:47 am #679065
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    Sir what is a reward situation

    February 18, 2023 at 9:58 am #679078
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    The case Carlill v Carbolic was (I believe) the first illustration of a reward case.

    Is it possible to make an offer to the World at large? If I lose my dog and advertise a reward in the local media for the safe return of my pooch, to whom am I making that offer? Why, the World at large!

    Anyone, anywhere in the World could read that advert and take immediate steps to search for my dog.

    And when Rustam from Tashkent appears on my doorstep with the dog and claims the reward, am I in a position to refuse and claim that the advert was merely an invitation to treat?

    NO!

    OK?

    February 18, 2023 at 10:14 am #679080
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    But sir in my first example
    What if there are multiple acceptance for the offer??
    He won’t be willing to enter into the contract with all of them

    February 18, 2023 at 10:33 am #679084
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    AH! In the lecture example (have you watched the lectures) the man in the harbour-side bar said in a loud voice “I shall give £100 to the first person to swim across this harbour” – so multiple acceptances are not relevant

    How many people can return my dog?

    OK?

    February 18, 2023 at 11:50 am #679091
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    But sir in my first example the offeror has not stated that the first person will be bound or anything like that?

    February 18, 2023 at 2:50 pm #679098
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    Your first post emphasised a particular area / wording about which your quandary lay.

    You specifically emphasised ‘I think it is invitation to treat as it is NOT ADRESSED TO A SPECIFIC PERSON.’ so my response concentrated on what appeared to be your question viz is it possible to make an offer without it being addressed to a specific person or specified group of people.

    And my answers have indicated to you that ‘Yes. it IS possible to make an offer to unspecified people – in fact, it’s possible to make an offer to the whole World’.

    Now you throw in the issue of the possibility of multiple acceptances.

    In a situation where the subject matter of the offer no longer exists, it is no longer available for a prospective acceptor to enter into the contract. So, no, I continue to disagree with you.

    Let’s go back to my missing dog. If Rustam from Tashkent brings back my dog having just run it over and killed it, is a dead dog still a dog? Or should I have advertised the reward for the SAFE return of my dog?

    There’s an issue that, to my knowledge, has not yet been tested in Court. Imagine this situation … your neighbour has a yappy dog that barks well into the night and then again at first light in the morning. You have asked your neighbour to please keep his dog under control such that it doesn’t keep you awake at night and then doesn’t wake you up in the morning, but your neighbour responds by saying that the dog is just doing what comes naturally to a dog – it barks.

    One evening, whilst your neighbour is watching television, you tempt the dog into your garden with a nice piece of juicy steak. When the kidnap is successfully accomplished, you then poison the dog and that effectively stops the barking.

    Your neighbour, distraught at losing his dog, advertises a reward for the return of the beast. Having taken effective steps to silence the nuisance, is it available to take the dead dog back next door and say that you’d found it lying dead under your hedge and can you now claim the reward?

    Answers on a postcard please 🙂

    .

    February 18, 2023 at 3:17 pm #679102
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    Sir that’s a great explanation which has given me enought understanding.
    But I still am not able to get that if offeror never mentions of any express provision for a specific person or so
    And he gets multiple acceptance
    Will he be bound by contract
    Like my first example
    Example he gets acceptance from X, Y and Z
    Will he need to bind with all of them
    Since you said it as an offer?

    February 18, 2023 at 4:31 pm #679104
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    I see where you’re coming from … but let’s say that X contacts our offeror and accepts the offer.

    Then along comes Y and says ‘About your offer …’

    Before Y can say anything else, our guy says ‘Ooops, sorry. All sold’

    I don’t believe it would be any different if he’d got the words ‘I accept’ out.

    Something along the lines of ‘About your offer, I accept’

    ‘Ah! Sorry pal They’ve all gone now. There were only 500 and they’ve been sold to Ms X’

    I honestly don’t know what I’d do now if that were me getting the bad news. In reality, I’d probably say ‘Oh! That’s a great pity’ or words to that effect. And then go and see if I could find another lot of 500 units. If the supply of this product is greater than the demand, there’s no problem (Thompson v Robinson Gunmakers)

    But if demand exceeds supply, or if the item was in some way unique or rare, then legal action would be the way to go.

    OK?

    February 18, 2023 at 5:10 pm #679106
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    Ok got it
    But sir acceptance get effective when it is delivered to the offeror
    And acceptance becomes effective and contract concludes.
    So since y’s acceptance is delivered to offeror
    I guess the contract is formed

    February 18, 2023 at 5:53 pm #679111
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    Correct. But let’s assume that you’re the seller with 500 units for sale at £100 each, and you’ve just sold them to Ms X

    As Ms X drives away, you look up and see a horde of folks marching towards you so you climb atop your 4 x 4.and call out ‘I hope you lot haven’t come to accept the offer of 500 units for sale at £100 each because I’ve just sold all 500 to that lady driving away in the Porsche Carrera’

    Krrish, it comes down to practicalities but also comes down to availability of replacements. If these 500 items are in any way rare or unique, what is he doing selling rare artefacts on eBay?

    OK?

    February 18, 2023 at 6:02 pm #679116
    krrish2005
    Participant
    • Topics: 35
    • Replies: 103
    • ☆☆

    Yes sir i got it.
    It’s offeror responsibility to use proper words
    Like in my example if he knows the article is rare he should show greater care in use of words
    As he may get bound by contract he don’t even want to get in

    February 18, 2023 at 6:36 pm #679118
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    You’ve got it! And, if it IS rare or unique s/he would probably take legal advice with reference to the wording of the advert.

    OK?

    February 19, 2023 at 11:40 am #679133
    mrjonbain
    Moderator
    • Topics: 2
    • Replies: 1600
    • ☆☆☆☆☆

    Would adding “subject to availability” to the offer deal with this problem?

    February 19, 2023 at 2:16 pm #679135
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22829
    • ☆☆☆☆☆

    That’s a good idea Jon, thanks.

    Now, if that were me, I would have worded the advert as: “Offered for sale 1 unit of product X for £100, subject to limited availability”.

    I think that would cover it adequately.

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