1. Agreement I & II

Question 1

Definition of ‘Offer’

Answer 1

An offer is an expression of willingness to contract on specified terms made with the intention that it is to become legally binding as soon as it is accepted by the person who it is addressed - an Invitation to treat.

Question 2

A requirement of an offer

Answer 2

1. Be certain
2. Be address to the offeree
3. Show intention to enter into a legal relationship.

Case ref: Gibson v Manchester City council

Question 3

Case reference on Agreement

Answer 3

Gibson v Manchester City Council (1979)

Used when the contract is not clear and it lacks certainty!

Question 4

What is NOT an Offer?

Answer 4

• Invitations to Treat
• Invitations to Tender
• Auctions

Question 5

Invitations to Treat are the general rule regarding advertisement. What are the case ref ?

Answer 5

• Adverts - PARTRIDGE V CRITTENDEN (1968)
• Display of Goods - Fisher v Bell (1961)
  Pharmaceutical society of GB v Boots (1953)

EXCEPTIONS

ADVERTS that’s are “Unilateral offers” case red: Carlill v the carbolic smoke bell company (1993)

Question 6

Unilateral offers case ref:

Answer 6

• Carlill v The Carbolic Smoke Ball Company (1893)
• Lefkowitz v Great Minneapolis Surplus Store (1957)
• Leonard v Pepsico (1999)

Question 7

Invitations to tender case ref:

Answer 7

Spencer v Harding (1870)

Question 8

Invitations to treat; auction

Answer 8

Payne v Cave (1789) & Barry v Davies ( 2000)

Question 9

How should an offer be communicated?

Answer 9

• In writing
• Orally
• By conduct ( Taylow v Laird) 1856)

Question 10

Termination of a offer occurs by?

Answer 10

An offer remains open until its rejected, terminated or lapsed.

Question 11

Termination of an Offer:

Rejection case ref

Answer 11

‘Counter-offer’ – Hyde v Wrench (1840)
‘Battle of the forms’ – Butler Machine Tool v Ex-Cell-O Corp (1979)
‘Requests for further information’ – Stevenson, Jaques v McLean (1880)

Question 12

Termination of an Offer:

Lapse case re

Answer 12

• Passage of time – Ramsgate Victoria Hotel v Montefiore (1866)
• Death – Bradbury v Morgan (1862)
• Non-fulfillment of a condition – Financings v Stimson (1962)

Question 13

Termination of an Offer:

Revocation case re

Answer 13

• Payne v Cave (1789)
• Byrne v Van Tienhoven (1880)
• Dickinson v Dodds (1876)

Question 14

What is the first step in establishing there is a contract?

Answer 14

To determine whether there is a valid offer.

Question 15

How can you decide if their is an offer?

Answer 15

From an invitation to Treat.

Question 16

Who is the offeree?

Answer 16

The person accepting the offer.

Question 17

In Holwell Securities Ltd v Hughes (1974) notice of acceptance was posted but it never reached the offeror.

Was there a valid contract?

Answer 17

There was no valid contract as the terms of the offer required the acceptance to be actually communicated. The language used in the offer was such to indicate that the notice should be received.

Question 18

If the postal rule is applicable, the acceptance is valid when the letter is posted.

The authority for this is the case of:

Answer 18

Adams v Lindsell (1818)

Question 19

The postal rule does not apply to acceptance made by instantaneous mode of communication.

Answer 19

True acceptance made by instantaneous mode of communication is valid when received - Entores v Miles Far East Corp (1955)

Question 20

Unilateral offer is?

Answer 20

An offer that is accepted by the performance of a proscribed act.

Question 21

Essential element of a contract

Answer 21

Offer, acceptance & consideration

Question 22

Objective test case ref:

Answer 22

Smith v Hughes

Question 23

Bilateral contract

Answer 23

Both parties agreement on the contract - mutual exchange of promises.

Question 24

Offereee

Answer 24

The Person accepting the offer

Question 25

Invitation to treat is?

Answer 25

The willingness to negotiate

Question 26

When would you use Storer v Manchester City council

Answer 26

When we argue that something should be construed as an offer.

Question 27

Meer puff

Answer 27

Something not to be taken seriously

Case: Pepsi Co and Lenard