Cases

Question 1

Gibson v Manchester City Council

Answer 1

Certainty of offer, no binding contract if there is no offer.
“we MAY be willing to sell the house to you”

Question 2

Storer v Manchester City Council

Answer 2

Certainty of offer. Clear and final offer once accepted is binding.
“Sign this form and return it and we will send you the agreement signed by us in exhange”

Question 3

Fisher v Bell

Answer 3

Display of goods in a shop window is an INVITATION TO TREAT not an offer.
Facts: Flick-knife with ticket saying ‘Ejector knife - 4s’ meaning shopkeeper would be compelled to sell if it was a contract.

Question 4

Pharmaceutical Society of GB v Boots Cash Chemists

Answer 4

Display of goods on shelf was invitation to treat. Offer is made when customer presents cash at till.

Question 5

Carlill v Carbolic Smoke Ball co

Answer 5

Rule:Unilateral contracts, only performance of a specific act constitutes acceptance.
“first 20 students in line outside my office at 9am on Monday will recieve…”

Question 6

Partridge v Crittenden

Answer 6

Adverts - Bramblefinches for sale. Held that advertisements are invitations to treat and not an offer for sale.

Question 7

Lefkowitz v Great Minneapolis Surplus Store

Answer 7

Confirms reasoning in Carlill v Carbolic, Unilateral offer, advertisement was clear definite and explicit, demonstrated clear intention to be bound therefore amounted to an offer, accepted when Lefkowitz showed up first in line 9am with $1.

Question 8

Leonard v Pepsico:

Answer 8

Exception to unilateral offers. An advertisment, which a reasonable person would not take seriously, is not an offer.
Pepsi points advert offers a harrier jet for 7,000,000 pepsi points..moron buys 7,000,000 ring pulls and wants his Jet.

Question 9

Grainger & Son v Gough

Answer 9

Manufacturers may be bound upon acceptance to provide unlimited quantity of goods.

Question 10

Spencer v Harding

Answer 10

Invitations to tender are not offers. They are asking for bids or offers which they are free to accept

Question 11

Harvela Investments Ltd v Royal Trust Co of Canada

Answer 11

Exception to invitation to tender. Where invitation expressly contains an undertaking to accept highest or lowest bid constitutes an offer, accepted by making the appropriate bid.

Question 12

Blackpool & Flyde Aero Club v Blackpool Borough Council.

Answer 12

Invitations to tender. If a bid is submitted properly in accordance with the terms of the invitation it must be considered (not accepted).

Question 13

Payne v Cave (2 rules)

Answer 13

Auctions: Auctioneers request for bids is in invitation to treat, bidders offer is accepted when auctioneers hammer falls. Bidder can revoke offer before this.
Revocation: can terminate any time before acceptance.

Question 14

Taylor v Laird

Answer 14

Communication of offer. can be in writing, orally or implied by conduct.

Question 15

Hyde v Wrench

Answer 15

An attempt to accept an offer on new terms may be a Counter Offer, which rejects the original offer. W offered to sell farm to H for £1000, H makes counter offer of £950, this offer is rejected.

Question 16

Butler Machine Tool Co v Ex-cell-o Corporation.

Answer 16

Battle of the forms. the person who fires the last shot wins the battle. Deals with offer made on Offerees standard terms and accepted by Offerors materially different standard terms.

Question 17

Stevenson, Jaques v McLean

Answer 17

Distinguishes Counter-offer from a request for information.
if Offeree attempts to clarify extent and terms of the offer, or to ascertain if the offeror would consent to changing certain aspects of an offer there is no counter offer so original offer remains open.

Question 18

Ramsgate Victoria Hotel v Montefiore

Answer 18

Termination of Offer, Lapse due to passage of time. Acceptance must be with in a ‘reasonable’ period of time.

Question 19

Bradbury v Morgan

Answer 19

Termination of offer. Lapse due to death - if notified before acceptance, if offeree is unaware of offeror’s death it probaby wont.

Question 20

Financings Ltd v Stimson

Answer 20

Termination of Offer - Lapse due to Non-fulfilment of a condition. Offer made subject to the fulfilment of a condition, failure by offeree to fulfil the condition prevents acceptance taking place.

Question 21

Man sends order to previous shop owner, new shop owner supplies goods Man refuses to pay, saying he has no idea who the shop owner is.

Answer 21

Acceptance must be made in response to an offer. Boulton v Jones.

Question 22

Man gives information after being arrested, having forgotten all about a reward being offered for that information…then asks for the money.

Answer 22

R v Clarke: Offer is not accepted by doing required act in ignorance.

Question 23

A woman gives up identity of murderer on deathbed as she fears eternal damnation.

Answer 23

Williams v Carwardine: As long as the offeree has knowledge of the offer and accepted in response to the offer, the motive for accepting is irrelevant.

Question 24

Man offers to by a horse in the letter with the offer he writes ‘if I hear no more about him, I shall consider the horse mine.’

Answer 24

Felthouse v Bindley: Offeror cannot waive the need for comunication, Silence cannot amount to acceptance.

Question 25

Man applies for post of headmaster, committee change their mind after one of them has already told him he got the job.

Answer 25

Acceptance made by a third party without authority does not constitute a contract. Powell v Lee

Question 26

Explain the Postal rule: and cite the case:

Answer 26

Adams v Lindsell. A letter of acceptance takes effect and will be deemed binding once it is correctly posted.

Question 27

Betty makes offer to enter the service of the Countess and sends a letter of acceptance, then changes her mind and the race is on…

Answer 27

Dunmore v Alexander: Posted acceptance can be revoked by a more expeditious communication (Phone quicker than Mail)

Question 28

What case tells us where a contract is concluded between 2 parties in different countries? how was it decided?

Answer 28

Entores v Miles Far East Corporation. Where acceptance was received.

Question 29

Mispriced Hare skins at the end of a negotiation is which case and gives us which principle?

Answer 29

Hartog v Collin and Shields. You cannot snatch a bargin, cannot profit from obvious mistake.