chapter 1 - agreements Flashcards
1
Q
Requirements of a valid offer
A
offer & acceptance + intention to create legal relations + consideration = binding contract
2
Q
What is a bilateral contact?
A
Where a party assumes an obligation to other party by promising to do something
3
Q
What is a unilateral contract?
A
One party makes an offer with terms that the other party must perform an act
4
Q
What is an invitation to treat?
A
Usually the first step in negotiations
- not an offer
- not a binding contract
5
Q
Types of invitations to treat…
A
- Advertisements
- Display of goods
- Invitations to tender
- Auctions
6
Q
How can an offer terminate?
A
- Rejection
- Lapse
- Revocation
7
Q
What are the 4 rules to acceptance?
A
- acceptance must be in response to offer
- acceptance must be unqualified
- may be necessary to follow prescribed mode of acceptance
- acceptance must be communicated
8
Q
What is postal rule?
A
Acceptance applies from the moment it is posted
9
Q
When does postal rule apply?
A
It applies even if acceptance is lost or delayed in the post
10
Q
When does postal rule not apply?
A
- if not contemplated post would be used
- to letters revoking the offer
- if incorrectly addressed
- if misapplied by offeror
