Agreement

Question 1

Who is the person who make the offer?

Answer 1

Offeror

Question 2

Who is the person who receives the offer?

Answer 2

Offeree

Question 3

What is an offer?

Answer 3

An expression of willingness to contract on certain terms, made with the intention that is shall become binding as soon as it is accepted by the person to who it is addressed.

Question 4

What do the Courts examine when the intention in an offer is trying to be established?

Answer 4

The courts look at what was said and done between the parties, from the point of view of a reasonable person, and try to decide what a reasonable person would have thought was going on.

Question 5

The definition of an offer contains the sentence ‘ to whom it is addressed to’. what does this mean?

Answer 5

You can only accept an offer that was addressed to you.

Question 6

Difference between an offer and invitation to treat?

Answer 6

An invitation to treat, is where there is an invitation to enter negation, this is determined by the wording used. for example ‘ I am thinking of selling my car for £7k, would you be interested in buying it’ is difference to ‘ I will sell you my car for £7k’? The later is an offer the former is an invitation to treat.

Question 7

What are goods on display?

Answer 7

They are an invitation to treat, ie an invitation to select the goods and put them in your trolley. If you later change your mind and decide you do not want the goods then you can put them back without obligation.

Question 8

Advertisements are they an offer or an invitation to treat?

Answer 8

Where goods and services are advertised eg in newspaper or tv, website then they are an invasion to treat.

An advert for a reward are normally treated as offers, as they are definite promises to pay the reward if the specified condition is satisfied.

Question 9

What are unilateral contracts?

Answer 9

A promise in exchange for a course of action. Only one party is making a promise.

Question 10

What are bilateral contracts?

Answer 10

a promise in return for a promise

Question 11

Are auctions offers or invitation to treat? and at what point at an auction is the sale concluded?

Answer 11

Auctions are invitation to treats and the offer is accepted, when the auctioneer’s gravel goes down.

Question 12

What are ‘Reserve prices in auctions’?

Answer 12

The owner and the auctioneer will agree in advance a minimum price below which the auctioneer will not sell the property.

Potential bidders will know that there is a reserve price, they will not know how much it is. if the bidding does not reach the reserve price the property will be withdrawn from the sale.

Question 13

Barry V Davies [2000] for auctions

Answer 13

Here we see the Auctioneer being sued for damages as he did not accept the highest bid. However if the auctioneer did accept the bid and the owner of the goods refused to sell, Mr Barry could sue the owner as he would have entered a contract of sale with the owner.

Question 14

How would damages be assessed in cases of breach of contract in Auctions

Answer 14

The difference between the amount of the bid and the total value of the machines, this sum represented the buyers loss of expectation.

Question 15

When would there be an acceptance

Answer 15

Where there is an expression of assent, which is unqualified.

The need for the expression to be unqualified means that a conditional response cannot amount to acceptance. For example ‘ I agree to buy your car but can only afford to pay you half the price now and the rest next week is a counter offer, which destroys the original offer.

Question 16

What does an expression of assent mean, when it comes to acceptance

Answer 16

Acceptance must be communicated and it must be communicated by the offeree or their authorised agent. This may be words or conduct.

Question 17

How is acceptance communicated in Unilateral contracts

Answer 17

Always be conduct of some sort

Question 18

Can silence ever amount to acceptance?

Answer 18

An offeror can bind the other party to a contract by silence. However if silence is coupled with conduct which clearly signifies accepted when viewed objectively, then this will be acceptance.

Question 19

What does the term ‘ battle of the forms’ illustrate?

Answer 19

It is essentially counter-offer after counter-offer, where the parties battle it out and the prize is having your own terms prevail. In other words, the last shot wins.

This is normally seen where companies attach their T & C’s to documents when negotiating with each other.

Question 20

What is the ‘postal rule’

Answer 20

A letter of acceptance will be effective when posted even if the letter is lost in the post.

Question 21

What conditions need to be satisfied for the postal rule to apply.

Answer 21

1. It was reasonable in all the circumstances to use the post.
2. The letter was properly addressed, stamped and posted.
3. The postal rule had not been excluded by the offeror.

Question 22

Give an example of when the postal rule would be excluded?

Answer 22

The offeror had stipulated or otherwise implied that they needed to be notified in writing or told of any acceptance. In this case, although sending a letter of acceptance might be reasonable it would only be effective if and when, received.

Question 23

What does the case Holwell Securities v Hughes tell us about the postal rule?

Answer 23

The court held by using the word ‘ notice’ the offeror had impliedly excluded the postal rule.

Question 24

How many an offer be terminated?

Answer 24

1. Express rejection
2. Lapse of time
3. Counter offer ( Implied rejection)
   Revocation ( withdrawal)

Question 25

When can there be revocation of an offer?

Answer 25

At any time before acceptance, even if the offer promised to keep the offer open for a certain period time.

Only time where there will be an exception to that is when the offeree gives something in return for the promise to offeror to keep the offer open.

Question 26

when does acceptance occur in Unilateral contracts.

Answer 26

Acceptance only occurs where the performance is completed, therefore no obligations arise until the specified act is completed.

There are some judicial authorities which suggest that partial performance is sufficient to prevent revocation. Provided that the specified act is started within a reasonable time.

Question 27

How is revocation deemed to be effective.

Answer 27

When it is communicated to the offerer.

Question 28

What is the rule for revocation when it comes to electronic communication?

Answer 28

Revocation will be effective when it should have been read. This means when revocation is sent to business, any communication sent outside of business hours, will not deem to be read.

Question 29

How can a revocation be made if an offer is made to the world?

Answer 29

The best the offeror can do in the circumstances is publish a notice of revocation in the same place as the offer and with the same prominence.

Question 30

Does the postal rule apply to notice of revocation

Answer 30

No

Question 31

Who can a notice of revocation be given by

Answer 31

An offeror or a reliable third party

Question 32

Who must communicate acceptance

Answer 32

The Offeree or an authorised agent

Question 33

Can an offer lapse

Answer 33

After a specified time, or otherwise after a reasonable time. a reasonable time will depend on all the circumstances. For example a reasonable time within which to accept an offer to buy perishable goods will be significantly less than in the case of an offer to sell non perishable goods.