BUS-294 Lecture Notes - Lecture 21: Flying Club, House Of Lords, Switchblade
20 Jun 2020
School
Course
Professor
Business 294
Business Law
Fall 2018
The Essentials Of An Valid Offer
● An offer must be clear and certain
○ Guthing v Lynn (1831) a claimant had bought a horse from the defendant who
had offered to pay an additional £5 if the horse had been lucky. However the court
ruled this was too vague.
○ May & Butcher v R (1934) An agreement to buy surplus tents where quantity and
price was never specified so House of Lords decided there was no contract.
○ Hillias v Arcos (1932) The parties had previously contracted with one another
regarding the sale of timber. The following year the buyers wished to exercise an
option to buy more timber but the price for the timber was not specified in the
original contract. The House Of Lords held the offer was clear given the price for
the previous sale was specified. There is technically a provision in the sale of
goods act that if a price is not specified then the party must pay a fair price.
● We need to distinguish between offers and invitations to treat (ITT)
○ An invitation to treat is not an offer that can be accepted. It is an indication that
the person making the ITT would like the other person to make an offer.
● A classic example of invitation to treat are goods for sale in shops
○ Fisher v Bell (1961) A flick knife was on show in a shop, however the court
determined that the buyer is the individual making an offer and the sale is only
completed once the seller accepts the offer. The item being on display even with a
price is merely an invitation to treat.
● Advertisements are also an invitation to treat
○ Partridge v Crittenden when an individual was prosecuted for advertising wild
birds for sale that were illegal to trade. Court rule he could only be prosecuted
once accepting an offer.
● Invitations to tender are another form of invitation to treat.
○ Blackpool & Fylde Flying Club v Blackpool BC (1990) A company submitted a
tender offer to Blackpool council but the council did not process it before their
deadline so the flying club sued in breach of contact. The court held that the
tender should have been considered.
● Catalogues & Auctions
○ You make an offer in an auction and it is accepted by the fall of the hammer
● Share Prospectus
○ Also an invitation to treat, offer accepted when you send them a cheque
Carbolic Smoke Ball Company
Document Summary
An offer must be clear and certain. Guthing v lynn (1831) a claimant had bought a horse from the defendant who had offered to pay an additional 5 if the horse had been lucky. However the court ruled this was too vague. May & butcher v r (1934) an agreement to buy surplus tents where quantity and price was never specified so house of lords decided there was no contract. Hillias v arcos (1932) the parties had previously contracted with one another regarding the sale of timber. The following year the buyers wished to exercise an option to buy more timber but the price for the timber was not specified in the original contract. The house of lords held the offer was clear given the price for the previous sale was specified. There is technically a provision in the sale of goods act that if a price is not specified then the party must pay a fair price.
