Contract 1 - Agreement Flashcards
How will a communication be seen as an offer?
Create a reasonable expectation of intention to enter into a contract
Define offeror and offeree
Offeror = person making the offer
Offeree = person to whom the offer is made
What must a communication contain to be an offer?
Intention = promise, undertaking or commitment to enter into a contract
What must the terms of an offer be?
Definite and certain
Reasonable accuracy what the offer is
To accept the offer, what must the offeree have?
Knowledge of the offer
Is request for information an offer?
No - not certain enough
What is an invitation to treat. Is this an offer?
An invitation to the other party to make an offer - not an offer itself
What are examples of invitations to treat?
- Advertisements
- Shop sales
- Price lists
- Tenders
- Auctions
- Price quotations = depends on fact and intention of parties
How would you assess if something is an offer or invitation to treat?
The legal significance of each statement or until there are no more communications
What’s the difference between a bilateral and unilateral contract?
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
What is an example of unilateral contract?
Advertisements e.g. I will pay £50 if you find my lost dog. Contract formed after full performance
How can an offer be terminated?
- Revocation (by offeror)
- Rejection (by offeree)
- Operation of law
How can an offeror revoke their offer?
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
What are the limitations on revocation?
- Collateral contracts
- Beginning performance under unilateral contracts
Give difference between beginning performance in bilateral and unilateral contracts?
Bilateral = beginning performance is acceptance so the contract is formed
Unilateral = full performance is when the contract is formed
What ways can an offeree reject the offer?
- Expressly
- Counter offer
- Lapse of time
What is a counter offer?
Rejection of original offer and new offer
Parties switch sides
What happens to the original contract is offeree rejects collateral contract?
Nothing - does not terminate the original offer
How can an offeree reject an offer by lapse of time?
If they’ve failed to respond within a specified or reasonable amount of time
How will an offer be terminated by operation of law?
- Death of either party
- Destruction of subject matter of contract
- Supervening illegality
- Failure of condition in offer
What are the basic principles of acceptance?
- Unqualified
- Only the person to whom the offer is addressed can accept
- Cannot be assigned apart from agency
- Knowledge of the offer to accept
How can an offer be accepted? What happens if method is stipulated?
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
Can silence be a method of acceptance?
No - needs to be positive step
Can conduct be a method of acceptance?
Yes but offeror must be aware of offeree conduct
Can requirement of for communication of acceptance be waived?
Yes - expressly and impliedly
Impliedly = conduct
What is the postal rule and when will it not apply?
Acceptance at point of posting UNLESS
- Not properly addressed or stamped
- Not reasonable to post acceptance
- Offer says it’s not accepted until received
Does not apply to instant methods of communications like email - acceptance when received
What is the battle of the forms?
When parties want to contract on their own terms - formed on last terms sent and performance begun
