2. OFFER AND ACCEPTANCE A simple contract (that is, a contract made not under seal) requires an offer made by one party and accepted by the other, valuable consideration given by either side, or a common intention that the agreement should be legally binding
4. OFFER An offer is made when one party makes it clear, by words or actions, that he is prepared to be bound as soon as the offer is accepted by the person to whom it is made. An offer is thus quite different from an invitation to treat, though it is not always easy to distinguish the two.
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11. An advertisement is usually an invitation to treat but can be an offer, depending on its wording and on the circumstances.
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22. D offered to take a lease of P's premises, a definite answer to be given (by P) within six weeks. After three weeks D withdrew his offer, and just within the six weeks P purported to accept it. The judge said the acceptance was too late; if one party has six weeks to accept an offer, the other has six weeks to put an end to it. One party cannot be bound without the other.
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30. D made an offer in June to buy shares in PP's company, but heard nothing. PP made an allocation of shares in November, and purported to accept D's offer, but D refused to go ahead. The court said that although the offer had not been formally withdrawn, it would expire after "a reasonable time", and given the fluctuating nature of the subject matter the
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35. PP sought to buy various properties from DD, and draft contracts were prepared. DD undertook that if PP produced the draft contract and a bankers' draft by a certain time they would enter into a full contract. PP obtained the bankers' draft and attended at DD's offices before the deadline, but DD refused to go ahead. PP's claim for damages was dismissed by Brightman J and the Court of Appeal because the collateral contract (relating to an interest in land) did not conform with the Law of Property Act 1925 s.40, but Goff LJ said obiter that while the offeror of a unilateral contract is entitled to require full performance of his condition and short of that is not bound, there must be an implied obligation on his part not to prevent the condition becoming satisfied, and that obligation arises as soon as the offeree starts to perform. Until then the offeror can revoke the whole thing, but once the offeree has embarked on performance it is too late for the offeror to revoke his offer.