Contract 1 - Agreement

Question 1

How will a communication be seen as an offer?

Answer 1

Create a reasonable expectation of intention to enter into a contract

Question 2

Define offeror and offeree

Answer 2

Offeror = person making the offer
Offeree = person to whom the offer is made

Question 3

What must a communication contain to be an offer?

Answer 3

Intention = promise, undertaking or commitment to enter into a contract

Question 4

What must the terms of an offer be?

Answer 4

Definite and certain
Reasonable accuracy what the offer is

Question 5

To accept the offer, what must the offeree have?

Answer 5

Knowledge of the offer

Question 6

Is request for information an offer?

Answer 6

No - not certain enough

Question 7

What is an invitation to treat. Is this an offer?

Answer 7

An invitation to the other party to make an offer - not an offer itself

Question 8

What are examples of invitations to treat?

Answer 8

1. Advertisements
2. Shop sales
3. Price lists
4. Tenders
5. Auctions
6. Price quotations = depends on fact and intention of parties

Question 9

How would you assess if something is an offer or invitation to treat?

Answer 9

The legal significance of each statement or until there are no more communications

Question 10

What’s the difference between a bilateral and unilateral contract?

Answer 10

Bilateral: both parties assume an obligation to each other
Unilateral: one party makes an offer in terms which call for an act to be performed by one or more other parties

Question 11

What is an example of unilateral contract?

Answer 11

Advertisements e.g. I will pay £50 if you find my lost dog. Contract formed after full performance

Question 12

How can an offer be terminated?

Answer 12

1. Revocation (by offeror)
2. Rejection (by offeree)
3. Operation of law

Question 13

How can an offeror revoke their offer?

Answer 13

Directly and Indirectly

Indirectly:
1. Offeree receives correct information from a reliable source
2. Conduct of offeror indicates the offeror no longer wishes to make an offer

Question 14

What are the limitations on revocation?

Answer 14

1. Collateral contracts
2. Beginning performance under unilateral contracts

Question 15

Give difference between beginning performance in bilateral and unilateral contracts?

Answer 15

Bilateral = beginning performance is acceptance so the contract is formed

Unilateral = full performance is when the contract is formed

Question 16

What ways can an offeree reject the offer?

Answer 16

1. Expressly
2. Counter offer
3. Lapse of time

Question 17

What is a counter offer?

Answer 17

Rejection of original offer and new offer
Parties switch sides

Question 18

What happens to the original contract is offeree rejects collateral contract?

Answer 18

Nothing - does not terminate the original offer

Question 19

How can an offeree reject an offer by lapse of time?

Answer 19

If they’ve failed to respond within a specified or reasonable amount of time

Question 20

How will an offer be terminated by operation of law?

Answer 20

1. Death of either party
2. Destruction of subject matter of contract
3. Supervening illegality
4. Failure of condition in offer

Question 21

What are the basic principles of acceptance?

Answer 21

1. Unqualified
2. Only the person to whom the offer is addressed can accept
3. Cannot be assigned apart from agency
4. Knowledge of the offer to accept

Question 22

How can an offer be accepted? What happens if method is stipulated?

Answer 22

Accept by any reasonable manner in any reasonable medium

If method stipulated in offer and not used = no acceptance unless the method is not less advantageous

Question 23

Can silence be a method of acceptance?

Answer 23

No - needs to be positive step

Question 24

Can conduct be a method of acceptance?

Answer 24

Yes but offeror must be aware of offeree conduct

Question 25

Can requirement of for communication of acceptance be waived?

Answer 25

Yes - expressly and impliedly

Impliedly = conduct

Question 26

What is the postal rule and when will it not apply?

Answer 26

Acceptance at point of posting UNLESS

1. Not properly addressed or stamped
2. Not reasonable to post acceptance
3. Offer says it’s not accepted until received

Does not apply to instant methods of communications like email - acceptance when received

Question 27

What is the battle of the forms?

Answer 27

When parties want to contract on their own terms - formed on last terms sent and performance begun