Cases revers

Question 1

A counter-offer is an offer made by the offeree to the original offeror, in this case, the first offer comes to an end and now the new offer is valid, it has the same effect as a rejection and ends the original offer. The offeree cannot go back on the rejection unless the other party agrees.

Answer 1

Hyde v Wrench (1840)

Question 2

Performance of an existing contractual duty is not normally good consideration for a promise of extra payment, because no new obligation is undertaken by the promisee in return.

Answer 2

Stilk v Myrick (1809)

Question 3

Where a party performs or agrees to perform additional obligations in exchange, a promise of extra payment will be enforceable.

Answer 3

Hartley v Ponsonby (1857)

Question 4

The practical benefit conferred by performance may be a good consideration for a promise of extra payment.

Answer 4

Williams v Roffey Bros (1991)

Question 5

In social agreements, there is a presumption that the parties do not intend to create legal relations.

Answer 5

Jones v Padavatton (1969)

Question 6

Rebutting presumption in social agreements - this may be rebutted where the parties are separating or separated.

Answer 6

Merritt v Merritt (1979)

Question 7

Rebutting presumption in social agreements - where there is a mutuality in the arrangements such that the intention is to share benefits, or a party is at a disadvantage.

Answer 7

Simpkins v Pays (1955)

Question 8

A condition is a major term in the contract that goes to the roots of the contract.

Answer 8

Poussard v Spiers & Pond (1876)

Question 9

A warranty is a term which is not of the central importance of the contract.

Answer 9

Bettini v Gye (1876)

Question 10

A misrepresentation is fraudulent where it is made knowing it to be false, or made without belief in its truth, or made with reckless carelessness as to its truth.

Answer 10

Derry v Peek (1889)

Question 11

Damages are monetary compensation intended to put the innocent party in the position they would have been in had the contract been performed.

Answer 11

Robinson v Harman (1848)

Question 12

An offer is an expression of willingness to be bound on certain terms. It is capable of being accepted.

Answer 12

Carlill v Carbolic Smoke Ball Co (1893)

Question 13

An invitation to treat is merely an invitation for making an offer or to open negotiations.

Answer 13

Gibson v Manchester City Council (1979)

Question 14

Revocation of an offer must be communicated to the offeree.

Answer 14

Byrne v Van Tienhoven (1880)

Question 15

Revocation may be communicated to the offeree by a reliable third party.

Answer 15

Dickinson v Dodds (1876)

Question 16

An offer will lapse after a reasonable time.

Answer 16

Ramsgate Victoria Hotel v Montefiore (1866)

Question 17

Acceptance must be communicated to the offeror to be effective.

Answer 17

Entores v Miles Far East Crop (1855)

Question 18

The offeror cannot, by stipulation, treat the silence of the offeree as acceptance of the offer.

Answer 18

Felthouse v Bindley (1862)

Question 19

The term may be incorporated into the contract by course of dealing, both frequent and consistent.

Answer 19

Hollier v Rambler Motors (1972)

Question 20

The presumption in commercial agreements is that an agreement made in the course of business is presumed to be legally binding.

Answer 20

Edmonds v Lawson (2000)

Question 21

A half-truth is a statement which is true, but which is to mislead by giving a false impression to the other party, it can give rise to misrepresentation.

Answer 21

Nottingham Patent Brick & Tile Co v Butler (1886)

Question 22

The entire performance rule or complete performance rule provides that a party’s performance must be complete and exact before they can demand the performance of the other party.

Answer 22

Cutter v Powell (1795)

Question 23

An acceptance of partial performance, the substantial performance of a contractual obligation.

Answer 23

Hoenig v Isaacs (1952)

Question 24

Prevention of performance.

Answer 24

Planché v Colburn (1831)

Question 25

Tenders of performance.

Answer 25

Startup v Macdonald (1843)

Question 26

Frustration of the contract occurs when, without the default of either party, an unforeseen event occurs, which frustrate the contract and make it impossible, illegal, or completely pointless to perform.

Answer 26

Taylor v Caldwell (1863)

Question 27

A loss which is not too remote is recoverable, a loss is not too remote if it arises naturally from the breach or is in the reasonable contemplation of the parties at the time the contract is made as the probable result of the breach.

Answer 27

Hadley v Baxendale (1854)

Question 28

The rule was reframed in terms of the knowledge of the parties, based on their actual knowledge or their imputed knowledge.

Answer 28

Victoria Laundry v Newman Industries (1949)

Question 29

The terms of the offer must be sufficiently certain in order to give rise to an enforceable contract if the offer is accepted.

Answer 29

Scammell v Ouston (1941)

Question 30

The Postal Rule says that where the acceptance letter is properly posted, stamped and addressed, acceptance is treated as completed on the posting of the letter, not its delivery to the offeror.

Answer 30

Adams v Lindsell (1818)

Question 31

Non-pecuniary loss – if the purpose of the contract was to provide for pleasure or amenity.

Answer 31

Jarvis v Swans Tours (1973)

Question 32

An innominate term is a term that cannot be classified at the time of formation as a condition or a warranty. The innocent party’s right to terminate for a breach depends upon whether the breach is sufficiently serious.

Answer 32

The Hongkong Fir (1962)

Question 33

Consideration must be sufficient, which means of a type recognised by law as having value.

Answer 33

Thomas v Thomas (1842)

Question 34

Privity of contract – the general rule is that a person who is not a party to a contract cannot sue under the contract.

Answer 34

Tweddle v Atkinson (1861)

[Dunlop v Selfridge (1915)]

Question 35

Business efficacy test – a term may be implied by the court on the facts under the business efficacy test.

Answer 35

The Moorcock (1889)

Question 36

Where the contract would lack business efficacy without the term, or under the officious bystander test.

Answer 36

Shirlaw v Southern Foundries (1939)

Question 37

Consideration is a benefit to the promisee or a detriment to the promisor.

Answer 37

Currie v Misa (1875)

Question 38

Past Consideration - the general rule is that past consideration is not good consideration where a promise is made after alleged consideration for it was given.

Answer 38

Re McArdle (1951)

Question 39

A statement may be a misrepresentation if it becomes false before the contract is entered.

Answer 39

With v O’Flanagan (1936)