The essential element of the formation of a
binding contract is
offer,
acceptance,
consideration, legality, capacity and the intention to create legal relations. An offer is an expression of willingness which will become legally binding once it is accepted, and acceptance is the agreement to all the terms in the offer. Generally a shop window display is an offer to
treat where the customer makes the offer and the seller is free to accept or reject the offer as demonstrated in Fisher v Bell (1961). In Pharmaceutical Society of Great Britain v Boots Chemists (1953), it was held that the display of goods on the shelf was only an invitation to treat and that in law, the customer offered to buy the goods at the cash desk. A public advertisement in Partridge v Crittenden (1968), a person was charged with offering a wild bird for sale contrary to Protection of Birds Act 1954, he could not be guilty of offering the bird for sale as the advert was an invitation to treat.
An offer can be made to an individual which does not concern anyone else this is called bilateral offer. A
General offer can be made to everyone this is called a unilateral offer; if the normal person believes that the offer is genuine it will amount to a legally binding contract once it has been accepted Carlill v Carbolic Smoke Ball Co. (1893). In the Carlill case the company had not only promised ¤100 but had mentioned that it had deposited ¢1000 in its bank this showed that they had an intention to create legal relations, similarly anyone can accept this offer so long as they follow the requirements stated on the offer in the case of Go Now Company & travel Agents, Mr Kevin Kay will have to be the first customer to enter the office o 8th November with evidence that they have been on holiday with go now holidays abroad in the last two years as this has some value to the company and pay one pound for the holiday. The consideration means something for thing “quid pro qui” in Chapel v Nestle (1959) the consideration was something that is not worth anything to one but was worth something to the other, similarly the consideration for Kevin’s case will be the two previous tickets from the past two years.
The general rule of acceptance is that it should be communicated the same way as the offer is received, unless otherwise stated. Though “Silence does not amount to acceptance” Felthouse v Bindley (1862) as acceptance must be communicated. In Entores Ltd. v Miles Far East Corporation (1955) illustrates the general rule of acceptance where the acceptance must be received by the offeror for the contract to be bound.
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