Contract

Question 1

Rule in Hyde v Wrench

Answer 1

Counter offer kills off original offer

Question 2

Rule in Payne v Cave

Answer 2

Revocation of an offer possible at any point before acceptance

Question 3

Rule in Routledge v Grant

Answer 3

Offer revocation possible before end of offeror’s time limit

Question 4

Byrne v Tienhoven

Answer 4

Offer revocation must be communicated

Question 5

Dickinson v Dodds

Answer 5

Offer revocation can be communicated via a third party

Question 6

Entores v Miles

Answer 6

Offeree must communicate acceptance of offer to offeror

Question 7

Adams v Linsell

Answer 7

Postal rule - acceptance effective once posted

Question 8

Hentham v Fraser

Answer 8

Postal rule provisor - must be reasonable to accept by post

Question 9

Holwell Securities v Hughes

Answer 9

Postal rule provisor - offeror must not have displaced postal rule

Question 10

What are three postal rule provisors?

Answer 10

1. Stamped and addressed properly
2. Reasonable to accept by post
3. Postal rule not displaced by offeror

Question 11

What is an offer?

Answer 11

An expression of willingness to enter into a legally binding agreement, with no further negotiations to the terms

Question 12

What is acceptance?

Answer 12

A final, unqualified assent to all terms of an offer

Question 13

Cundy v Lindsay

Answer 13

Written correspondence contracts can be rendered void by unilateral mistake

Question 14

Phillips v Brooks Ltd

Answer 14

Face to face contracts cannot be rendered void by unilateral mistake (can be voidable)

Question 15

Shogun Finance Ltd v Hudson

Answer 15

Substantiated rule in Cundy

Question 16

Ingram v Little

Answer 16

Does not follow rule in Phillips
Denning criticism that original seller parted with goods before payment, enabling fraud, and should bear the greater cost

Question 17

Kings Norton Metal v Edridge, Merrett and Co

Answer 17

Did not follow rule in Cundy

Question 18

Hamid v FBP 2011

Answer 18

Revisited aspects of Shogun

Question 19

Who dissented in Shogun?

Answer 19

Lord Nicholls and Lord Millett

Question 20

Lord Nicholls’ main arguments in Shogun?

Answer 20

1. Cundy old
2. No distinction between f2f and correspondence contracts
3. Fraud does not negate intention: o.s. agreed to sell goods, identity relevant in remedy, not contract formation
4. Loss should be borne by o.s.
5. If rep had been in showroom…

Question 21

Lord Millett’s arguments in Shogun?

Answer 21

1. Law should favour innocent third party
2. Until fraud was exposed, existence of contract never in question
3. Shogun could have written to (the real) Mr Patel to verify transaction
4. New methods of correspondence make delineation between f2f and correspondence contracts untenable

Question 22

Four aspects required for unilateral mistake?

Answer 22

1. Intention to deal with someone other than the rogue
2. Rogue knew this
3. Identity crucial at time of sale
4. Reasonable steps taken to verify identity

Question 23

Three types of mistake?

Answer 23

Common, mutual and unilateral

Question 24

Test for unilateral mistake subjective or objective?

Answer 24

Objective - reasonable bystander

Question 25

Current law on unilateral mistake in f2f contracts?

Answer 25

O.s. intended to deal with person in front of them; contract may be voidable (Phillips v Brooks Ltd)

Question 26

Current law on unilateral mistake in correspondence contracts?

Answer 26

O.s. intended to deal with person in correspondence; contract may be voided (Cundy v Lindsay)