Contract 1 - agreement Flashcards
What 3 things are required to form a binding contract?
- Offer & acceptance ๐ค
- ICLR ๐
- Consideration ๐ต
Whatโs the difference between a bilateral and unilateral contract?
- Bilateral: both parties assume an obligation to each other ๐๐
- Unilateral: one party makes an offer in terms which call for an act to be ๐performed by one or more other parties
What are the requirements for a valid offer?
- Clear & certain ๐
- Display an intention to be bound (unequivocal acceptance) ๐๐ก
What is an invitation to treat and 5 examples of it?
The 1st step in negotiations that canโt be accepted to form a binding contract
1. Ads (not where there is a unilateral offer) ๐ฅ
2. Displays of goods ๐
3. Invitation to tender ๐๐ค
4. Auctions ๐จโโ๏ธ
5. Websites ๐ป
When is agreement made for self-service shops?
Offeror = customer
Offeree = storekeeper
Agreement made when scanned through
When will an invitation to tender NOT be treated as an invitation to treat?
๐ค๐
- Where the ITT expressly contains an undertaking to accept the highest or lowest bid ๐จโโ๏ธ
- Itโs a form of unilateral contract ๐
When would there be a binding contractual obligation to consider tenders?
- Tender solicited from specified parties known to them; ๐
- absolute deadline for submission; ๐
- absolute conditions for submission ๐
What happens with a โwithout reserveโ auction where the auctioneer refuses to sell to the highest bidder?
- Could be sued for breach of unilateral contract: promise auction is without reserve ๐
- Highest bona fide bidder entitled to damages but NOT the goods (as this was dictated by a bilateral contract) ๐ท
How can an offer come to an end?
- Rejection - counter-offer seen as a rejection ๐คฌ
- Lapse - not in time prescribed or not within a reasonable time โฑ๏ธ
- Revocation - any time before acceptance upon actual notice of it reaching the offeree (if by post, moment received by offeree) ๐๐๏ธ
For unilateral contracts, when can revocation take place?
- Prior to completion of completed act
But..
- For ones made to the whole world, itโs effective where offeror takes reasonable steps to bring revocation to attention of all who may have read it ๐๐ฃ
- Where itโs been partly performed & they are willing/able to complete, revocation not effective ๐ซฅโ
What are the requirements for valid acceptance?
- Only offeree can accept ๐ซต
- Acceptance is unqualified - mirror image โบ๏ธ
- Valid method (if method prescribed) ๐
- Communicated to offeror - effective from time communicated: for post, time it was properly posted; for instantaneous means, when received by offeror ๐ฎ
When does the postal rule apply?
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 ๐
- if not contemplated post would be used; ๐ฅด
- incorrectly addressed; ๐ฉ
- letters revoking offers; ๐ฌ
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?
Offeree: no contract
Offeror: contract prevails
Nobody: no contract