Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Contract > Agreement > Flashcards

Agreement Flashcards

1
Q

What is a contract?

A

An agreement giving rise to obligations which are enforced or recognised by law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the purpose of a contract?

A
  • Risk allocation
  • Establishing obligations
  • Creation of certainty
  • Determination of outcome in the event something goes wrong
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an offer?

A

An expression of willingness to contract on specified terms with the intention that it is to become legally binding as soon as it is accepted by the party to whom it is addressed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which case displays the difference between an offer and an invitation to treat?

A

Gibson v Manchester City Council; Storer v Manchester City Council

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an invitation to treat?

A

An expression of willingness to enter into negotiations with the hopes that it will lead to a contract at a later date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

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

A

Difference in intention- did the statement maker intend his statement to be binding upon acceptance without further negotiations, or did he intend for the statement to be a part of the continuing negotiation process?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is estoppel?

A

Representor is prevented from going back on his representation where the representation is acted upon, and to the detriment of the representee (Detrimental reliance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does it mean to ‘snatch a bargain’?

A

Where the offeree knows that the offeror is suffering from a mistake as to the terms of the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the rules concerning snatching a bargain?

A

There is no contract where the offeree is aware that the offeror is suffering from a mistake

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which case illustrates snatching a bargain?

A

Hartog v Collins & Shields

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What qualifies as a mistake?

A

A mistake relating to the terms, not the facts of an offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the general rule for the existence of a valid acceptance?

A

An acceptance to an offer in accordance with the mirror image rule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the mirror image rule?

A

A clear and unequivocal offer must be matched by an equally clear and unequivocal acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which case reflects the mirror image rule?

A

Hyde v Wrench
Butler v Ex Cell O Corp

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a counter-offer?

A

An acceptance seeking new terms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the implications of a counter-offer?

A

A counter-offer kills off the original offer, incapable of acceptance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is acceptance?

A

An unqualified expression of assent to the terms proposed by the offeror.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What was the conclusion in Hartog v Colin & Shields?

A

The claimant could not have thought the offer had matched the defendant’s intention- claimant unauthorised to ‘snatch a bargain’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a battle of the forms case?

A

Where both parties reasonably believe their terms are the ones governing the contractual relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why has the mirror image rule been criticised in it’s application to battle of the forms cases?

A

It encourages business people to exchange their standard terms of business in hopes of getting the ‘last shot’ in, placing the party in receipt of the last communication in a difficult position.

21
Q

What are the 3 interpretations for the objective test establishing existence of an agreement?

A
  • Standard of detached objectivity
  • Promisee objectivity
  • Promisor objectivity
22
Q

What is the general rule for the display of goods?

A

Fisher v Bell; Pharmaceutical Society of GB v Boots Cash Chemists- DOG is an invitation to treat, rather than an offer

23
Q

What was the conclusion in Pharmaceutical Society of GB v Boots Cash Chemists?

A

An offer is made by the customer which may be accepted by the shopkeeper

24
Q

What is the general rule for adverts?

A

Partridge v Crittenden- A newspaper advert is an invitation to treat rather than an offer

25
Q

Why is the general rule that an advert is not an offer?

A

If adverts=offers, sellers would be contractually obliged to sell more goods than he owned

26
Q

What is the general rule for auction sales?

A

The auctioneer, by inviting bids to be made, makes an invitation to treat. The bidder makes an offer which is accepted when the auctioneer strikes table with the hammer

27
Q

What happens if an auction is without reserve?

A

The auctioneer makes an offer that the sale is without reserve which is accepted by the highest bidder- Barry v Davies

28
Q

What type of contract is there between the auctioneer and bidder?

A

A collateral contract

29
Q

What is the general rule regarding tenders?

A

Invitation to tender is an invitation to treat. An offer is made by the one submitting the tender, accepted by the one inviting tenders Harvela Investments v Royal Trust Co

30
Q

Does acceptance have to be made via words?

A

Acceptance can be made by conduct if it is clear that the offeree did the act in question with the intent (objectively assessed) of accepting the offer- Day Morris Associates v Voyce

31
Q

To which extent does acceptance by conduct extend to?

A

Once conduct is proved to equal acceptance, acceptance extends to all the terms of the offer- Arcadis Consulting v AMEC

32
Q

What is the general rule for communication of acceptance?

A

Acceptance must be communicated to the offeror (Entores v Miles Far East Corp)

33
Q

What is a tender?

A

The process whereby businesses require specific skills. for a project/goods/services

34
Q

What was held in Harvella Investments v Royal Trusts Co?

A

A referential bid subverts the purpose of an auction

35
Q

What ends an offer?

A

Revocation, Rejection, Counter-offer, Request for further information, Lapse of Time,

36
Q

What is the rule for acceptance in ignorance of the offer?

A

Not entitled to sue-Gibbons v Proctor; R v Clarke

37
Q

What is the general rule where the offeror does not prescribe a specific mode of acceptance?

A

A court will bound the offeror by an acceptance made in a form no less advantageous than the one he prescribed (Manchester Diocesan v Commercial)

38
Q

What is the general rule for acceptance by silence?

A

Felthouse v Bindley- silence cannot amount to an acceptance unless conduct gives rise to the inference that the silence=acceptance

39
Q

What is required by the offeree where they accept via silence?

A

Some positive action

40
Q

What is the postal rule?

A

Acceptance takes place when the letter of acceptance is posted by the offeree- Adams v Lindsell

41
Q

What is the justification of the postal rule?

A

By prescribing a mode of acceptance, offeror has chosen to start negotiations and assumed the risk of delay

42
Q

When is the postal rule applicable?

A

Where it is reasonable to use post - Henthorn v Fraser

43
Q

What if the letter gets lost in the post?

A

The contract is concluded when it is posted, not when it reaches the offeror (Household Fire Insurance v Grant)

44
Q

What is a unilateral contract?

A

A contract whereby one party promises to the other a sum of money or some act if the other party will do or refrain from doing something

45
Q

What is the leading case for unilateral offer?

A

Carlill v Carbolic Smoke Ball

46
Q

What was established in Carlill v Carbolic Smoke Ball?

A

Acceptance can be made by fully performing the act

47
Q

What is the general rule for unilateral offers?

A

Daulia v Four Milbank- the offeror is entitled to require full performance of the condition he has imposed. There is an implied obligation on the offeror to not prevent the condition becoming satisfied which must arise as soon as the offeree starts to perform

48
Q

What was held in Errington v Errington?

A

A uniltateral offer cannot be revoked once the couple embarked upon performance

49
Q

What is consideration?

A

Contract (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions