Agreement & Intention

Question 1

Parties’ intention to contract judged objectively - conduct over claimed intention - case.

Answer 1

The Leonidas

Question 2

Rebuttable presumption of intention to contract in commercial contexts - case.

Answer 2

Edwards v Skyways.

Question 3

Rebuttable presumption of no intention to contract in domestic contexts - case.

Answer 3

Balfour v Balfour.

Question 4

Treitel definition of an offer.

Answer 4

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

Question 5

Terms of an agreement must be certain to be valid - case. If terms are vague then no agreement - case.

Answer 5

Scammell v Ousten.

Hillas v Arcos.

Question 6

Goods on display in a shop - offer or invitation to treat? Case.

Answer 6

Invitation to treat - Fisher v Bell.

Question 7

Self-service display in a shop - offer or invitation to treat? Case. Exception.

Answer 7

Invitation to treat - Pharma Soc of GB v Boots Cash Chemist. Unless clear intention to be bound, e.g. sale with marked price.

Question 8

Advertisements - offer or invitation to treat? Case. Exception. Case.

Answer 8

Invitation to treat - Partridge v Crittenden. Except where clear intention to be bound on certain terms - Carlill v Carbolic Smoke Ball Co.

Question 9

Auctions with a reserve price - offer or invitation to treat? Authority. Exception. Case.

Answer 9

Invitation to bed = invitation to treat. Bid = offer. Hammer dropping = acceptance. s57(2) SGA 1979. Unless an auction without reserve, where invitation to bid = offer. Highest bid = acceptance. Barry v Davies.

Question 10

Can an offeror revoke an offer at any time, regardless of whether he has agreed to keep it open? Case. Exception. Case.

Answer 10

Yes - Routledge v Grant. Unless consideration has been given for the offer being kept open - Mountford v Scott.

Question 11

What must be done for revocation to be effective? Case. Exception. Case.

Answer 11

Revocation must be communicated - Byrne v Van Tienhoven. Except where sent to a business during normal business hours - deemed effective on receipt - The Brimnes.

Question 12

Give 3 examples of how revocation can be communicated. Cases.

Answer 12

1. By the offeror - Byrne v Van Tienhoven.
2. By a reliable third party - Dickinson v Dodds.
3. Through the same channel it was broadcast to the public - Shuey v US.

Question 13

What will the introduction of a new term constitute? What will happen to the old offer? Case.

Answer 13

Counter-offer. Old offer impliedly rejected and thus destroyed - Hyde v Wrench.

Question 14

Is a request for information a counter-offer? 2 examples and cases.

Answer 14

No - it is neither acceptance nor counter-offer - Stephenson Jacques v McLean. When preceded by acceptance it is a request for indulgence - Society of Lloyds v Twinn.

Question 15

Treitel definition of acceptance.

Answer 15

An unqualified expression of assent to the terms of an offer.

Question 16

What must done for acceptance to be effective?

Answer 16

Acceptance must be communicated - Entores v Miles Far East Corp.

Question 17

Give 2 examples of how acceptance may be communicated. Cases.

Answer 17

1. By the offeree - Entores v Miles Far East Corp.

2. By a duly authorised agent - Powell v Lee.

Question 18

Where business include standard terms (‘battle of the forms’) what rule will apply regarding acceptance?

Answer 18

Last shot wins. The offer is accepted on whichever business’ terms were submitted last - Butler Machine Tool v Ex-Cell-O.

Question 19

Will silence generally constitute acceptance? Case. 2 exceptions. Cases.

Answer 19

No - Felthouse v Bindley. However courts see no reason why offeree canot bind himself, e.g. ‘If you don’t hear from me, assume…’ - Re Selectmove. Acceptance may also occur by conduct, e.g. taking delivery - Brogden v Metropolitan Railway.

Question 20

Postal rule exception to the rule that acceptance must be communicated - criteria and cases. Must the letter arrive? Case.

Answer 20

Adams v Lindsell.
1. Post must be reasonable method of acceptance.
2. Letter must be properly posted.
3. Offeror must not have excluded the postal rule - Holwell v Hughes.
Does not matter whether letter arrives - Household Fire Insurance v Grant.