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FLK 1 - Contract > 1. Agreement > Flashcards

1. Agreement Flashcards

1
Q

What is an offer in contract law?

A

An expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

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2
Q

What does the term ‘expression’ mean in the context of an offer?

A

It may take many different forms, such as a letter, newspaper advertisement, email, text message, and even conduct, as long as it communicates the basis on which the offeror is prepared to contract.

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3
Q

What does the term ‘intention’ mean in the context of an offer?

A

It does not necessarily mean the offeror’s actual intention. The courts adopt what is primarily an ‘objective’ approach to deciding whether there was agreement between the parties. The courts look at what was said and done between the parties, from the point of view of a ‘reasonable person’, and try to decide what a reasonable person would have thought was going on.

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4
Q

Who can accept an offer?

A

A person can only accept an offer that was addressed to them.

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5
Q

What is an invitation to treat?

A

Preliminary statements inviting negotiation which a party cannot agree to create a binding contract.

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6
Q

Is ‘good on display’ an offer or an invitation to treat?

A

It is an invitation to treat - an invitation to select goods and browse in a store.

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7
Q

What is an invitation to treat in a shopping scenario?

A

It is an invitation to select goods and browse in a store but no obligation to buy anything.

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8
Q

What is the difference between an invitation to treat and an offer in advertisements?

A

Goods or services advertised are an invitation to treat, while adverts of a reward are offers - promise to pay a reward if a condition is met.

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9
Q

What is a unilateral contract?

A

It is a contract where only one party makes the promise - promise to pay a reward but no specific act binding anyone (if you do X I promise to do Y).

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10
Q

When is an offer accepted in an auction?

A

An offer is accepted when the gavel goes down and the final bid (offer) is accepted (‘sold!’).

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11
Q

What is the difference between an auction and an invitation to treat?

A

An auction is an invitation to treat.

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12
Q

What is a unilateral contract in an auction scenario?

A

An auction can be a unilateral contract if the auctioneer stated that the item on auction will be sold at any amount bid (Barry v Davies) - if an auctioneer does not then sell to the higher bidder they would be in breach.

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13
Q

What is a reserve price in an auction?

A

It is an agreed price minimum bid between the owner and the auctioneer for expensive assets.

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14
Q

What happens if the bidding does not reach the reserve price in an auction?

A

The property may be withdrawn from the auction, and the owner suffers no consequences.

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15
Q

What is an invitation to treat in the context of tenders?

A

It is when businesses contract out services and invite a number of companies to submit tenders for the work.

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16
Q

What is a unilateral contract offer in the context of tenders?

A

It is when a business makes a specific promise to accept a tender, e.g. lowest tender.

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17
Q

What is acceptance in contract law?

A

It is an unqualified expression of assent to the terms of an offer.

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18
Q

What are the requirements for acceptance in contract law?

A

There must be an expression of assent, which is ‘unqualified.’

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19
Q

How must acceptance be communicated in contract law?

A

It must be communicated by the offeree or their authorized agent, by words or conduct.

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20
Q

What is the acceptance requirement for a unilateral contract?

A

Acceptance will always be conduct.

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21
Q

Is silence considered acceptance in contract law?

A

It depends on the context.

if coupled with conduct that clearly signifies acceptance when viewed objectuvely then yes

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22
Q

What is a unilateral contract?

A

Acceptance will always be conduct.

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23
Q

What is the meaning of ‘unqualified’?

A

A conditional response cannot amount to acceptance and create a contract.

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24
Q

What is a counter-offer?

A

The offeree imposes a condition on their acceptance, which destroys the original offer and represents a new offer that the other party is free to accept or reject.

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25
Q

What is the postal rule?

A

A letter of acceptance will be effective when posted even if the letter is lost in the post.

offeror states notice in writing or the matter is urgent then postal rule will be excluded

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26
Q

What are the conditions that must be satisfied for the postal rule to apply?

A

a. it was reasonable in all the circumstances to use the post; b. the letter was properly addressed, stamped and posted; and c. the postal rule had not been excluded by the offeror.

27
Q

What happens if the postal rule is excluded?

A

The letter of acceptance would only be effective if, and when, received.

28
Q

What is an invitation to treat?

A

It is an invitation to select goods and browse in a store but no obligation to buy anything.

29
Q

What is the difference between an invitation to treat and an offer?

A

An invitation to treat is an invitation to select goods and browse in a store but no obligation to buy anything, while an offer is a promise to do something or refrain from doing something in exchange for something else.

30
Q

What is a unilateral contract?

A

It is a contract where only one party makes a promise, such as a promise to pay a reward if a condition is met.

31
Q

What is the mechanism of concluding a contract in a shopping scenario?

A

The buyer offers to buy certain goods, and the cashier decides whether or not to accept the offer.

32
Q

What is the difference between an offer and an advertisement?

A

An offer is a promise to do something or refrain from doing something in exchange for something else, while an advertisement is an invitation to treat.

33
Q

What is a reserve price in an auction?

A

An agreed price minimum bid between the owner and the auctioneer.

34
Q

What is the consequence if the bidding does not reach the reserve price in an auction?

A

The property may be withdrawn from the auction and the owner suffers no consequences.

35
Q

What is an invitation to treat in the context of tenders?

A

When businesses contract out services and invite a number of companies to submit tenders for the work.

36
Q

What is a unilateral contract offer in the context of tenders?

A

When a business makes a specific promise to accept a tender, e.g. lowest tender.

37
Q

What is acceptance in contract law?

A

An unqualified expression of assent to the terms of an offer.

38
Q

What is required for acceptance to occur in contract law?

A

(a) an expression of assent, (b) which is ‘unqualified’.

39
Q

What is the requirement for communication of acceptance in contract law?

A

Acceptance must be communicated by the offeree or their authorised agent by words or conduct.

40
Q

What is the type of acceptance for a unilateral contract?

A

Acceptance will always be conduct.

41
Q

Is silence considered as acceptance in contract law?

A

It depends on the circumstances, but generally, silence is not considered as acceptance.

42
Q

What is a unilateral contract?

A

A contract where acceptance will always be conduct.

43
Q

What is the meaning of ‘unqualified’?

A

It means that a conditional response cannot amount to acceptance and create a contract.

44
Q

What is a counter-offer?

A

It is when the offeree imposes a condition on their acceptance, which destroys the original offer and represents a new offer that the other party is free to accept or reject.

45
Q

What is the postal rule?

A

It addresses that a letter of acceptance will be effective when posted even if the letter is lost in the post.

46
Q

What are the conditions that must be satisfied for the postal rule to apply?

A

It was reasonable in all the circumstances to use the post; the letter was properly addressed, stamped and posted; and the postal rule had not been excluded by the offeror.

47
Q

Termination of an offer

A

An offer cannot be accepted once it has been terminated.

48
Q

Rejection

A

The act of communicating or submitting a counter-offer to reject an offer.

49
Q

Revocation

A

The act of withdrawing an offer before acceptance.

50
Q

Lapse of Time

A

An offer without a specified open duration will expire after a reasonable time.

51
Q

Express Rejection

A

The act of explicitly communicating rejection of an offer.

52
Q

Implied Rejection

A

The act of submitting a counter-offer as a form of rejection.

53
Q

Revocation Timing

A

An offer can be revoked at any time before acceptance.

54
Q

Revocation with Consideration

A

If the offeree gave something in return for the promise to keep the offer open, the offer must stay open for the agreed time.

55
Q

Effective Revocation

A

Revocation must be communicated to the offeree by the offeror or a reliable third party to be effective.

56
Q

Electronic Communication Revocation

A

In relation to electronic communications sent to a business, revocation is effective when it should have been read.

The Court of Appeal held that it was communicated when it was received, if it was communicated by such means that it would in the normal course of business come to the
Agreement attention of the person on its arrival, but for their failure to act in a normal business-like
manner

57
Q

Large Public Offer Revocation

A

In relation to large public offers, the offeror can publish a notice of revocation in the same place and with the same prominence as the offer.

58
Q

Notice of Revocation

A

The postal rule does not apply to notice of revocation.

59
Q

Reasonable Time

A

The duration of time considered reasonable for an offer to remain open, depending on the nature of the offer and all other circumstances.

60
Q

Agreement

A

An offer that has been accepted.

61
Q

Complete Agreement

A

Determining whether parties have reached complete agreement in relation to the material terms of the deal, judged objectively in context.

62
Q

Trade Usage

A

The customary practices and understandings within a particular trade or industry.

63
Q

Objective Mechanism

A

An arbitration clause or other means to resolve any uncertainty in an agreement.

FLK 1 - Contract (5 decks)

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