(a) Offer
An offer sets out the terms upon which an individual is willing to enter into a binding contractual relationship with another
person. It is a promise to be bound on particular terms, which is capable of acceptance. The essential factor to emphasise
about an offer is that it may, through acceptance by the offeree, result in a legally enforceable contract. The person who makes
the offer is the offeror; the person who receives the offer is the offeree.
Offers, once accepted, may be legally enforced but not all statements will amount to an offer. It is important, therefore, to be
able to distinguish what the law will treat as an offer from other statements, which will not form the basis of an enforceable
contract. An offer must be capable of acceptance. It must therefore not be too vague (Scammel v Ouston (1941)). In Carlill v
Carbolic Smoke Ball Co (1893) it was held that an offer could be made to the whole world and could be accepted and made
binding through the conduct of the offeree.
In addition an offer should be distinguished, from the following:
(i) a mere statement of intention, which cannot form the basis of a contract even although the party to whom it was made
acts on it (Re Fickus (1900)).
(ii) a mere supply of information, as in Harvey v Facey (1893) where it was held that the defendant’s telegram, in which
he stated a minimum price he would accept for property, was simply a statement of information, and was not an offer
capable of being accepted by the claimant. |
