Offer

A contract is based on agreement. Agreement = offer + acceptance.

An offer is a definite and unequivocal statement of willingness to be bound in contract without further negotiations.

An offer must be distinguished from an invitation to treat.

Invitation to Treat

This is an invitation to another party to make an offer himself. An invitation to treat cannot be "accepted", because it is not an offer.

Examples of invitations to treat are as follows.

1. The display of goods in shop windows: Fisher ? Bell 1960.

2. The display of goods on supermarket shelves: Pharmaceutical Society ? Boots Cash Chemists 1953.

3. Most advertisements: Partridge ? Crittenden.

Communication of Offer to Offeree

An offer can only be accepted and hence a binding contract created if it has been communicated to the offeree.

Communication may be either express (i.e. oral or written) or implied (e.g. through conduct).

An offer can be made to a specific person, to a group of people or to the world at large: Carlill ? Carbolic Smoke Ball Company 1893.

Termination of an Offer

Once terminated an offer cannot be accepted.

An offer may terminate as follows.

1. Lapse. Expiry of a time limit, failure to meet a condition and death of one of the parties, or by counteroffer change in the terms of the original offer.

2. Rejection. Rejection of the offer by the offeree. A request for further information is not an implied rejection.

3. Revocation.