4

Question 1

Neale v Merrett 1930
PROPERTY

Answer 1

• offered to sell the property for a £280 lump sum
• The other party accepted by sending £80 and promising to pay the remainder monthly.
• the acceptance is invalid as it altered the original terms

Question 2

Conduct: Brogden v Metropolitan Railway Co (1877)

Answer 2

• supplying coal to the Company for many years, but this was done without a formal contract.
• If parties act in a way that shows they are following the terms of an agreement, this can also create a legally binding contract.

Question 3

what is the postal rule?

Answer 3

The postal rule states that an acceptance of an offer is valid when it is posted.

Question 4

Adams v Lindsell (1818)
WOOL

Answer 4

• the defendants sent a letter of an offer to sell wool to the claimant, they stated that any acceptance must be by return of post.
• The letter was wrongly addressed so did not arrive until the 5th September.
• The claimant posted their acceptance immediately which arrived on the 9th.
• On the 8th, believing that the claimants did not want the wool, the defendants sold it to a third party.
• The claimant sued for breach of contract.

Question 5

Can you avoid the postal rule?

Answer 5

Yes
Parties can avoid the postal rule by insisting on a different means of communication or stating that letters are effective on receipt (not posting). The courts can also imply such an intention.

Question 6

Felthouse v Bindley (1862)

Answer 6

The claimant offered to buy a horse and said that he would assume the seller agrees unless he hears differently. The seller intended to accept and asked the horse to be withdrawn from an auction, but it was sold by mistake. The claimant sued the auctioneer. His claim failed as he was not the owner of the horse. The seller had never communicated acceptance to the buyer and as such, it still belonged to the seller when it was sold.

Question 7

what are the two expections to the rule that acceptance must be communicated?

Answer 7

• unilateral contracts
• postal rule

Question 8

what is an offer?

Answer 8

A clear statement of the terms on which one party (the offeror who makes the offer) is prepared to make an agreement with another party (the offeree who accepts the offer).

Question 9

Guthing v lynn 1831

Answer 9

The buyer of a horse made a promise to give the seller an extra £5 if the horse was ‘lucky for me’. It was held that the phrase was ‘lucky for me’ was too vague to be enforceable.

Question 10

Hillas v Arcos (1932)

Answer 10

here a contract to supply wood for one year contained an option permitting the buyer to buy more wood next year. There were no other terms. It was held this was a valid offer as the terms could be clarified by looking at the previous dealings between the parties as well as from the custom and practice of the timber trade.