agreement

Question 1

what are the 4 requirements for a binding contract?

Answer 1

1- offer
2- acceptance
3- intention to create legal relations
4- consideration

Question 2

how is intention evident when making an offer?

Answer 2

You look at what he said and done not the man’s actual intent in mind

Question 3

What elements make an offer valid?

Answer 3

• certainty of offer
• intention to be bound
• clear

Question 4

define a bilateral contract

Answer 4

where both parties assume an obligation to each other

Question 5

define a unilateral contract

Answer 5

Where one party makes an offer in terms which call for an act to be performed by one or more other parties
- only person making offer assume an obligation

Question 6

What case was held to be a unilateral contract instead of an invitation to treat?

Answer 6

Carlill v Carbolic Smoke Ball

Question 7

What is an invitation to treat?

Answer 7

First step in negotiations, which may or may not lead to a firm offer by one of the parties.

Question 8

What are some (4) examples of invitations to treat?

Answer 8

• advertisement
• Display of goods for sale (including websites)
• Invitations to tender
• Auction sales

Question 9

When is an offer accepted in an auction sale?

Answer 9

Acceptance of the bidder’s offer will be indicated by the fall of the auctioneer’s hammer.

Question 10

What is an auction sale without reserve?

Answer 10

Where the seller promises to sell to
the highest bidder, whatever that bid turns out to be. (unilateral contract)

Question 11

In which 3 ways can an offer be terminated?

Answer 11

• rejection
• lapse
• revocation

Question 12

Define rejection of an offer.

Answer 12

Where the offeree rejects an offer, it cannot be accepted unless another offer with the same conditions is made.
- counter-offers are a form of rejection

Question 13

How does lapse terminate an offer?

Answer 13

• by time passing (reasonable time)
• by death of either party (if offeree is unaware of offeror’s death, it probably will not lapse)

Question 14

How is an offer terminated by revocation?

Answer 14

• offeror may withdraw their offer, (revocation must reach offeree)
• once offer is accepted, offeree cannot revoke acceptance

Question 15

What are the rules of a unilateral contract being revoked?

Answer 15

• can be revoked unless offeree has partly performed condition
• implied obligation not to revoke once party has partly performed

Question 16

What are the 4 aspects of communicating unequivocal acceptance to an offer?

Answer 16

1- acceptance must be in response to an offer
2- acceptance must be unqualified (counter-offer / further info req)
3- may be necessary to follow prescribed mode of acceptance
4- acceptance must be communicated

Question 17

What does it mean to follow a prescribed mode of acceptance?

Answer 17

Where the offeror may express a chosen mode of acceptance as a term
- they may make it mandatory
- unless made mandatory, another form of acceptance is not any less advantageous.

Question 18

How can the prescribed mode be made mandatory?

Answer 18

• offeror prescribes a mode of acceptance
• it excludes all other options and is mandatory

Question 19

When is an offer deemed accepted by post?

Answer 19

The moment the letter of acceptance is properly posted
- Adams v Lindsell case
- still applies even where delayed or lost in post

Question 20

In what circumstances (4) does the acceptance via postal rule not apply?

Answer 20

1- if not contemplated post would be used
2- to letters revoking offers
3- if incorrectly addressed
4- if disapplied by offeror

Question 21

What is the rule for communication by instantaneous means (telephone, email)?

Answer 21

acceptance takes place at the moment the acceptance is received by the offeror