Contract

Question 1

Requirements for a valid offer

Answer 1

1) clear and certain 2) intention to create legal relations

Question 2

Examples of invitation to treat

Answer 2

1) advertisements (exception = unilateral offer), display of goods, invitations for tender (exception = undertaking to accept highest/lowest bid)

Question 3

3 rules re: acceptance

Answer 3

1) must be in response to offer 2) mirror rule 3) may need to follow prescribed mode

Question 4

Rules re: prescribed mode of acceptance

Answer 4

must clearly prescribe mode of acceptance, if not communicated as mandatory then another mode of acceptance acceptable iff no less advantageous to offerer

Question 5

Invitation to treat vs offer

Answer 5

invitation to treat cannot be accepted to create contract

Question 6

Regular auctions

Answer 6

1) request for bid = invitation to treat 2) bidder makes offer 3) auctioneer accepts

Question 7

Auctions without reserve

Answer 7

= offer to sell to highest budder

Question 8

Termination of an offer: rejection

Answer 8

= accept offer on new terms, original offer rejected and cannot be accepted

Question 9

Termination of an offer: lapse of prescribed time period

Answer 9

acceptance not made w/in prescribed period of time, if not prescribed then = reasonable time

Question 10

Termination of an offer: death

Answer 10

if offeree knows offeror has died lapses else offer open, if offeree dies = automatic lapse

Question 11

Revocation - bilateral contract offer

Answer 11

1) offeror can withdraw at any point before acceptance 2) notice required (postal rule does not apply, effective when received)

Question 12

Revocation - unilateral contract

Answer 12

can revoke any time before completion of required act, exception = offeree has partly performed obligation + able and willing to complete then offeror estopped from withdrawing

nb if offer to whole world must take reasonable steps to communicate revocation

Question 13

Revocation by third party

Answer 13

possible for third party to revoke

Question 14

Rejection v request for information

Answer 14

request for info leaves original offer open to be accepted

Question 15

Silence as prescribed mode of acceptance

Answer 15

impossible

Question 16

Postal rule

Answer 16

If acceptance communicated by post, acceptance is when letter validly posted not when received (= put in official letter box or authorised Post Office employee, applies even if delayed/lost)

Question 17

Postal rule: exceptions

Answer 17

1) unreasonable for offeree to use post 2) acceptance incorrectly addressed 3) disapplied by offeror beforehand (in which case valid when received)

Question 18

Acceptance - instantaneous communication

Answer 18

acceptance = when received

Question 19

Acceptance - emails

Answer 19

acceptance when received

Question 20

Acceptance - office hours

Answer 20

message sent during ordinary office hours deemed received at start of office hours

Question 21

Certainty of contract

Answer 21

parties must agree to all material terms (“they consider as precondition to creating legal relations”), interpreted objectively (court will enforce when possible)