Critically Examine the Law Relating to Acceptance of an Offer. to What Extent Does the Law in This Area Need Clarifying?

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A contractual agreement constitutes of acceptance and an offer. Hyde v Wrench defined what acceptance must consist of “A valid acceptance must be an unqualified acceptance of all the terms of the offer ” Treitel stated that “an offer is an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the person to whom it is addressed ”. There is two different types of offers unilateral and bilateral. Unilateral offer is when one party promises to pay the other or to do some act if that other party will do or refrain from doing something without making a promise to that effect ( Carlill v. Carbolic smoke ball). The courts said it was an offer although they tried to say the advert was an example of pure mere puff and that they couldn’t have made an offer to the world at large however the court of appeal stated that the advertisement was an offer to the world at large and that it waived the need for communication of acceptance. A bilateral offer is when you have to expressly agree to the offer so both parties must express willingness to enter legal relations. Invitation to treat is a advertisement inviting people t o receive offers, it can found in news papers shop windows and self service desks. Pharmaceutical society of Great Britain v boots LTD established that the offer is made when the customer takes the product to the cashier and the offer is accepted. During an auction a bid constitutes as an offer and is accepted at the fall of a hammer this was shown in Payne and Cave, as it illustrates how acceptance is communicated during an auction. Communication of acceptance can be addressed in so many ways; the rule was illustrated by lord Denning in Entores v Far East Cooperation “if an oral acceptance is drowned out by an overflying aircraft, such that the offeror cannot

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