Contract 1 - agreement Flashcards

1
Q

What 3 things are required to form a binding contract?

A
  • Offer & acceptance ๐Ÿค
  • ICLR ๐Ÿ“„
  • Consideration ๐Ÿ’ต
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2
Q

Whatโ€™s the difference between a bilateral and unilateral contract?

A
  • Bilateral: both parties assume an obligation to each other ๐Ÿ‘‰๐Ÿ‘ˆ
  • Unilateral: one party makes an offer in terms which call for an act to be ๐Ÿ‘ˆperformed by one or more other parties
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3
Q

What are the requirements for a valid offer?

A
  1. Clear & certain ๐Ÿ”
  2. Display an intention to be bound (unequivocal acceptance) ๐Ÿ“„๐Ÿ’ก
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4
Q

What is an invitation to treat and 5 examples of it?

A

The 1st step in negotiations that canโ€™t be accepted to form a binding contract
1. Ads (not where there is a unilateral offer) ๐ŸŽฅ
2. Displays of goods ๐ŸŽ
3. Invitation to tender ๐Ÿ‘€๐Ÿ‘ค
4. Auctions ๐Ÿ‘จโ€โš–๏ธ
5. Websites ๐Ÿ’ป

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5
Q

When is agreement made for self-service shops?

A

Offeror = customer
Offeree = storekeeper
Agreement made when scanned through

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6
Q

When will an invitation to tender NOT be treated as an invitation to treat?
๐Ÿ‘ค๐Ÿ“„

A
  • Where the ITT expressly contains an undertaking to accept the highest or lowest bid ๐Ÿ‘จโ€โš–๏ธ
  • Itโ€™s a form of unilateral contract ๐Ÿ‘ˆ
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7
Q

When would there be a binding contractual obligation to consider tenders?

A
  • Tender solicited from specified parties known to them; ๐Ÿ‘‹
  • absolute deadline for submission; ๐Ÿ“…
  • absolute conditions for submission ๐Ÿ“„
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8
Q

What happens with a โ€˜without reserveโ€™ auction where the auctioneer refuses to sell to the highest bidder?

A
  • Could be sued for breach of unilateral contract: promise auction is without reserve ๐Ÿ‘ˆ
  • Highest bona fide bidder entitled to damages but NOT the goods (as this was dictated by a bilateral contract) ๐Ÿ’ท
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9
Q

How can an offer come to an end?

A
  1. Rejection - counter-offer seen as a rejection ๐Ÿคฌ
  2. Lapse - not in time prescribed or not within a reasonable time โฑ๏ธ
  3. Revocation - any time before acceptance upon actual notice of it reaching the offeree (if by post, moment received by offeree) ๐Ÿ“„๐Ÿ—‘๏ธ
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10
Q

For unilateral contracts, when can revocation take place?

A
  • Prior to completion of completed act

But..
- For ones made to the whole world, itโ€™s effective where offeror takes reasonable steps to bring revocation to attention of all who may have read it ๐ŸŒŽ๐Ÿ‘ฃ
- Where itโ€™s been partly performed & they are willing/able to complete, revocation not effective ๐ŸซฅโŒ

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11
Q

What are the requirements for valid acceptance?

A
  1. Only offeree can accept ๐Ÿซต
  2. Acceptance is unqualified - mirror image โ˜บ๏ธ
  3. Valid method (if method prescribed) ๐Ÿ“
  4. Communicated to offeror - effective from time communicated: for post, time it was properly posted; for instantaneous means, when received by offeror ๐Ÿ“ฎ
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12
Q

When does the postal rule apply?

A

Where acceptance delayed/lost in post acceptance applies from when the acceptance is posted, not when it reaches the offeror

Does Not Apply:

  • disapplied by offeror ๐Ÿ™…
  • if not contemplated post would be used; ๐Ÿฅด
  • incorrectly addressed; ๐Ÿ“ฉ
  • letters revoking offers; ๐Ÿ˜ฌ
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13
Q

If acceptance was not received and the offeree was at fault, what is the consequence? And if offeror at fault? And if nobody at fault?

A

Offeree: no contract
Offeror: contract prevails
Nobody: no contract

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