Contract law Introduction: Lesson 2-OFFER.pptx

Contract Law Introduction - Offer and Acceptance.

1. LESSON 2: Elements of a valid contract (i) OFFER LAW OF CONTRACTS I (SLS 1102) Course instructor: Ms. Sussie Mutahi ( [email protected])

2. Lesson (2) outline 2 1. Overview: Elements of a valid contract 2. Unilateral and Bilateral contracts 3. Offer: A definition 4. Distinguishing an offer from an invitation to treat 5. Termination of an offer

3. ELEMENTS OF A VALID CONTRACT An overview 1

4. A CONTRACT IS AN AGREEMENT GIVING RISE TO OBLIGATIONS ENFORCED OR RECOGNIZED BY LAW 4 Edwin Peel, The Law of Contract, Sweet & Maxwell, 13, 2011

5. ESSENTIALS OF A VALID CONTRACT 5 OFFER ACCEPTANCE CERTAINTY INTENTION CAPACITY CONSIDERATION

6. WHAT IS AN OFFER? 2

7. AN OFFER CONSTITUTES A PROPOSAL BY THE OFFEROR TO DO/TO ABSTAIN FROM DOING SOMETHING ON THE BASIS THAT THE PERSON RECEIVING THE OFFER (OFFEREE) WILL IN TURN DO OR ABSTAIN FROM DOING SOMETHING. 7

8. UNILATERAL & BILATERAL CONTRACTS 8 Bilateral contracts Most contracts are bilateral. The offeror promises to undertake an action and in turn, the offeree undertakes to perform their end of the undertaking. Unilateral contracts Unilateral contracts are contracts in which only one party undertakes to perform an undertaking/obligation. The other party does not make any reciprocal promise. Only one party assumes an aobligation under the contract E.g. Offer to give Ksh . 20,000,000 to anyone who finds a wanted criminal. https://www.citizen.digital/news/three-terror-convicts-who-escaped-from-kamiti-prison-arrested-n287226

9. Offer 9 PARTIES: OFFEROR + OFFEREE ( Maker of the offer ) ( Recipient of the offer ) CONSTITUENTS OF AN OFFER: Intention to be bound A specific action to be undertaken by the offeror

10. Offers to the public at large 10 Principle: An offeror can make his offer to a group of persons. An offer made by the offeror to a group of persons or even the general public (who become the offerees) will constitute a contract when acted upon by any of the members of the group . A unilateral offer becomes binding upong performance by members of the public Caselaw: Carlill v Carbolic Smoke Ball Co (1893) Kenyan example: Carrefour 10 difference refund policy https://online.flowpaper.com/7d94078f/10TIMESTHEDIFFERENCETandCs/#page=1

11. Form of offer 11 Principle: The law does not prescribe the form in which an offer is expected to take. Verbal Written Conduct An offer can therefore take any of these forms

12. DISTINGUISHING AN OFFER FROM AN INVITATION TO TREAT 3

13. AN INVITATION TO TREAT IS A PRECURSOR TO AN OFFER. IT IS AN OFFER TO RECEIVE OFFERS AND DIFFERS FROM AN OFFER ON THE BASIS THAT THERE IS NO INTENTION TO BE BOUND 13

14. Examples of invitation to treat 14 Advertisements for specified goods at specified prices Partridge v Crittenden [1968] 1 WLR 1204 Price tags on goods displayed for sale Pharmaceutical Society of GB v Boots Cash Chemists [1953] 1 QB 401 Tenders Sichuan Huashi Enterprises Corporation East Africa Limited v Landbank Real Estate Investment Trust Limited (Civil Suit 381 of 2015) [2021] KEHC 89 (KLR)

15. Termination of an offer 4

16. Upon the lapse of the time specified in the offer 16 Failure of a precondition Where the offer is rejected by the offeree Upon the death of the offeree Upon the death of the offeror Termination of an offer

17. Where the offer is withdrawn. 1. An offer may be withdrawn at anytime until it is accepted Payne v Cave (1789) 2. The withdrawal must be communicated Byrne & Co v Leon Van Tienhoven (1880) 3. Revocation must not necessarily be communicated by the offeror as long as it is communicated by a reliable source Dickinson v Dodds (1876) 4. A unilateral contract cannot be withdrawn once the offeree has accepted performance Errington v Errington (1952) 17 Termination of an offer

18. Thanks! Any questions? 18

19. Reading List 19 Partridge v Crittenden [1968] 1 WLR 1204 Pharmaceutical Society of GB v Boots Cash Chemists [1953] 1 QB 401 Dickinson v Dodds (1876)

20. Credits Presentation template by SlidesCarnival Photographs by Unsplash 20