Undergrad Guide: Offer and Acceptance in Nigerian Contract Law

What is a Valid Offer?

Hello Class. Welcome to this special masterclass segment.

An offer is a definite promise or proposal made by one party (the offeror) to another (the offeree) with the intention that it shall become binding as soon as it is accepted.

Offer vs Invitation to Treat

It is crucial to distinguish an offer from an Invitation to Treat. An invitation to treat is merely a preliminary step in negotiations. Common examples include:

• Goods displayed on a shelf in a supermarket (Pharmaceutical Society of Great Britain v Boots Cash Chemists).
• Advertisements (unless they are "unilateral" offers like in Carlill v Carbolic Smoke Ball Co.).
• Auctions.

The Rules of Acceptance

Acceptance must be absolute and unqualified. Any attempt to change the terms is not an acceptance but a counter-offer, which destroys the original offer (Hyde v Wrench).

The Postal Rule

Generally, acceptance is only valid when communicated. However, under the Postal Rule, acceptance is complete as soon as the letter is posted, regardless of when (or if) it reaches the offeror. This rule is applied cautiously in modern times, especially with electronic communications.