Law of Contract: Law of Contract Tony Walmsley and Emma Teare Requirements for a contract: Requirements for a contract Offer + Acceptance = Agreement Consideration Intention to Create Legal Relations Offer or Invitation to Treat?: Offer or Invitation to Treat? An offer once accepted creates an agreement An offer can be contrasted with an invitation to treat An invitation to treat is an invitation to enter negotiations The “acceptance” of an invitation to treat does NOT create an agreement It is not always easy to distinguish between an offer and an invitation to treat Offer or Invitation to Treat?: Offer or Invitation to Treat? In certain types of standard transactions (e.g. display of goods, advertisements) there are some general rules that apply as to whether or not an offer has been made (can be rebutted) Advertisements: Advertisements Generally these are Invitations to Treat NOT offers If an advert in the paper was an offer the person who placed the advertisement would be required to contract with anyone/everyone who wanted to purchase the goods at the price stated Examples of Invitations to Treat: Examples of Invitations to Treat Pharmaceutical Society of Great Britain v Boots  1 QB 401 Partridge v Crittenden  1 WLR 1204 Fisher v Bell  1 QB 394 Some adverts ARE offers: Some adverts ARE offers Often this is the case in UNILATERAL contracts The leading case is… Carlill v Carbolic Smoke Ball Co  1 QB 256 Court of Appeal: Carlill v Carbolic Smoke Ball Co  1 QB 256 Court of Appeal Rewards are often offers: Rewards are often offers Gibbons v Proctor (1891) 64 LT 594 Taylor v Allon  1 QB 304 R v Clarke (1927) 40 CLR 227 Williams v Cawardine (1833) 5 C & P 566 Example question: : Example question: ‘Chris offered to sell: a) his Hornby train set to Richard…..’ Is this necessarily an offer in the legal sense?