2 Agreement, Offer, Acceptance

Question 1

Carlill v Carbolic Smoke Ball

Answer 1

• Unilateral Offer
• Required performance was clear
• Intention of the offeror was provided by the deposit in the bank and mentioning it in the offer

Question 2

Partridge v Crittenden

Answer 2

• Birds that were protectet were advertised in a newspaper

Held

• Advertisement is an invitation to treat
• Putting a prohibited product on advertisement is not an illegal offer

Question 3

Gibson v Manchester City Council

Answer 3

(Facts: Sale of Houses Case)

• Invitation to treat
• Because no price was stated in the letter by the council

-> It was not properly construed as an offer so it was an invitation to treat.

Question 4

Fisher v Bell

Answer 4

(Facts: Knife (Weapon) on display in a shop which was illegal because restricted)

• Display of Goods is an invitation to treat and no offer!

Question 5

Pharmaceutical Society v Boots Chemists

Answer 5

• Display of goods on supermarket/pharmacy/retail store shelves are an invitation to treat.
• > By selecting the goods the customer makes the offer to buy them which will be either be accepted or rejected by the shop assistant / cashier

Question 6

Thornton v Shore Lane Parking

Answer 6

• Vending Machines are standing offers

Question 7

Warlow v Harrison

Answer 7

(Auction case)

• Bid is the offer
• Hammer is the acceptance

Question 8

Hyde v Wrench

Answer 8

(Farm Sale Case)

• Counter Offer does not form agreement
• Buyer can not go back to original offer after counter offer

Question 9

Brogden v Metropolitan Railway

Answer 9

(Coal Supply Case)

• Acceptance by conduct
• Counter Offer can be accepted by conduct

Question 10

Stevenson v McLean

Answer 10

(Iron trade case)

• An Inquiry is not a rejection or counter offer
  (We have to look closely at the wording)
• Revocation has to reach the other party in order to be effective

Question 11

Yates Building v Pulleyn Sons

Answer 11

(Plot building case)

• Offeror can make a certain communication way a condition
• Any similar advantageous method of acceptance is sufficient when it reaches the offeror correctly

(ad idem - meeting of the minds)

Question 12

Adams v Lindsell

Answer 12

• Postal Rule of Acceptance

-The offer is accepted at the day when it is posted by the offeree not when it is delivered to the offeror

• It signalises the meeting of the minds (ad idem)

Question 13

Henthorn v Fraser

Answer 13

(purchase of some houses)

• Postal rule does not apply to revocation of an offer
• Revocation must reach the offeree to become effective
• > claimant was entitled to specific performance.

Question 14

Household fire v Grant

Answer 14

(Share sale from company case)

Acceptance is complete once it is posted, it does not have to reach the offeror

Question 15

Holwell v Hughes

Answer 15

• Postal rule does not automatically apply and can be avoided
• In this case receiving the communication writing was expressly stated

Question 16

Entores v Miles Far East

Answer 16

(Telex case)

Instant Communication acceptance

Jurisdiction is where the acceptance is received

Question 17

Tenax Steamship v The Brimmes (Brimmes)

Answer 17

(Instant Communication Case)

• Acceptance is reveiced by instant communication during office hours

Question 18

Brinkibon v Stahag Stahl

Answer 18

(Vienna Telex Case)

Contract is concluded where telex/instanct communication acceptance is received

Approving Entores v Miles Far East

Question 19

Byrne v Van Thienhoven

Answer 19

• Revocation of an offer is not effective until it reaches the other party
• The postal rule does not apply to revocations
• Revocation must reach prior to acceptance

Question 20

Dickinson v Dodds

Answer 20

• The revocation does not have to be communicated by the offeror himself
• Offeror is free to revoke the offer at any time before acceptance

Question 21

Errington v Errington & Woods

Answer 21

(Father dies while the son and doughter in law lived in the house he offered them while they performed to pay the installments)

• Revocation of an Unilateral Offer
• > If the offeror in a unilateral offer dies after the performance had begun the offer can not be revoked

Question 22

Daulia v Four Mill Bank

Answer 22

(Property purchase case in response to unilateral offer)

• Unilateral offer cant be revoked once the performance has begun

Question 23

Luxor v Cooper

Answer 23

(Cinema property commission sale case)

• If the Unilateral offer asks for “completion” of an act the offeror has the right to revoke before the act is actually completed

Question 24

Shuey v USA

Answer 24

(Case where the US revoked an offer of rewards for apprehension of a criminal)

• A unilateral offer can only be revoked through the same channels and with the same manner it was made

Question 25

Scammel v Ouston

Answer 25

(Van hire Case)

• Contract was too vague and uncertain to be enforced, it required further agreement to be reached!

Question 26

Hillas v Arcos

Answer 26

(Wood trade business contract)

• If the cause of business and product quality is clear to the parties it must not be further specified in order for a binding contract
• > Court can imply terms on commercial practice

Question 27

Nicolene v Simmonds

Answer 27

“I assume that we are in agreement that the usual conditions of acceptance apply”

This is a meaningless clause, the court can severe it without abandoning the contract as a whole

Question 28

Walford v Miles

Answer 28

(Negotiation over a sale of company case - Lock Out Clause)

• It was merely an agreement to negotiate and therefore an incomplete contract
• > also no consideration was provided
• > no fixed time limit was provided

Question 29

Pitt v PHH Assett Management

Answer 29

Enforcable “lockout clause” (clause not to negotiate with someone else) because set time limit

Question 30

Supply of Goods and Services Act 1982

Answer 30

Implied terms about consideration

• > Reasonable price will be implied if not mentioned in the contract
• > The reasonable charge is a question of fact

Question 31

Consumer Rights Act (CRA) 2005

Answer 31

51: Reasonable price paid for service
- Consumer must pay a reasonable price if nothing other is mentioned not more.

Question 32

May, Butcher v R

Answer 32

(Parties baught tentage from the government)

No agreement on the price and date -> There was no concluded contract

Question 33

Foley v Classique Coaches

Answer 33

(Petrol supply without contract over a longer time case)

->Reasonable price and conditions can be implied by the course of dealings over a certain period of time

Question 34

Sudbrook Trading Estate v Eggleton

Answer 34

(Landlord sale to tenant where landlord did not want to appoint surveyor and said that it was therefore too vague in terms of price to contract case)

-clause was not too vague to be enforceable as it put in place a mechanism to ascertain the price.

Question 35

British Steel v Cleveland bridge

Answer 35

(No enforcable contract but performance under letter of intent case)

-Could get the value of the products made since they were of benefit.

Question 36

RTS Systems v Molkerei Mueller

Answer 36

• If a contract with special provision /terms is proposed but not signed and the parties start to perform without signing and both show conduct then there is a binding agreement thus a contract!
• A potential dispute will be governend by standard terms