Contract - Agreement and Intention

Question 1

Define ‘Invitation to treat’

Answer 1

An invitation to negotiate with no intention to be bound by specific terms

Question 2

Tenders are invitations to treat

Answer 2

Blackpool & Fylde Aero Club v Blackpool Borough Council

Question 3

Goods on display are invitations to treat

Answer 3

Fisher v Bell

Question 4

Self-service displays are invitations to treat

Answer 4

Pharmaceutical Society of Great Britain v Boots Cash Chemists

Question 5

Advertisements are invitations to treat; unless
1- offering reward
2- unilateral contracts

Answer 5

(Partridge v Crittenden);
1- Williams v Carwardine
2- Carlill v Carbolic Smoke Ball Co.

Question 6

Assessment of parties intention to create legal relations is objective

Answer 6

Smith v Hughes

Question 7

There is a presumption of intent to create legal relations for commercial transactions

Answer 7

Edwards v Skyways

Question 8

The presumption of intent to create legal relations for commercial transactions can be rebutted

Answer 8

Rose and Frank v Crompton Bros.

Question 9

There is a presumption that non-commercial agreements do not carry an intent to create legal relations

Answer 9

Balfour v Balfour

Question 10

The presumption that non-commercial agreements do not carry an intent to create legal relations is rebuttable

Answer 10

Merritt v Merritt

Question 11

There must be certainty in offer and acceptance

Answer 11

Scammell v Ouston

Question 12

Timber of fair specification is too vague

Answer 12

Hillas v Arcos

Question 13

Define ‘Offer’ (+ Authority)

Answer 13

An expression of willingness to be bound by certain terms made with the intention that is shall become binding as soon as it is accepted by the person it is addressed to (Treitel)

Question 14

Define ‘Acceptance’

Answer 14

An unconditional expression of ascent to the terms of an offer

Question 15

Acceptance must be communicated by:
1- The offeree
2- An authorised agent

Answer 15

1- Entores v Miles Far East

2- Powell v Lee

Question 16

Generally, silence cannot constitute acceptance

Answer 16

Felthouse v Bindley

Question 17

Silence can constitute acceptance where there is no reason why the offeree should not bind themselves

Answer 17

Re Selectmove

Question 18

A counter offer is implied rejection of the previous offer

Answer 18

Hyde v Wrench

Question 19

Questions about an offer are not a rejection or counter offer

Answer 19

Stevenson Jacques v McClean

Question 20

What are the 3 conditions of the postal rule exception?

Answer 20

1- Reasonable to use post
2- Properly posted
3- Postal rule not expressly/ impliedly excluded

Question 21

If the conditions for the postal rule are met, the acceptance will be validly communicated even if it does not arrive

Answer 21

Household Fire v Grant

Question 22

There is no authority on whether an acceptance can be retracted once posted

Answer 22

Countess of Dunmore v Alexander

Question 23

The postal rule was established in which case?

Answer 23

Adams v Lindsell

Question 24

Exclusion of the postal rule

Answer 24

Howell v Hughes

Question 25

Acceptance need not be communicated for unilateral contracts

Answer 25

Calill v Carbolic Smokeball Co

Question 26

What is the rule for auctions with a reserve price?

Answer 26

Contract between buyer and seller once hammer falls s57 SGA

Question 27

What is the rule for auctions without a reserve price? (+Authority)

Answer 27

Unilateral contract between auctioneer and seller that the highest bid will be accepted (Barry v Davies)

Question 28

Performance of the contract may be seen as on the terms of the last shot fired

Answer 28

Brogden v Met Railway

Question 29

General Rule: An offer can be revoked at any time, even if the offeror has agreed to keep it open

Answer 29

Routledge v Grant

Question 30

The offeror cannot revoke the offer if the offeree has provided consideration to keep it open

Answer 30

Mountford v Scott

Question 31

For unilateral contracts, revocation is not possible once the act of acceptance has begun

Answer 31

Errington v Errington

Question 32

Revocation must be communicated by:
1- The offeror
2- A reliable third party

Answer 32

1- Byrne v Van Tienhoven

2- Dickinson v Dodds

Question 33

If revocation received in business hours but not read, it is deemed communicated

Answer 33

The Brimneys

Question 34

If the offer was made to the public at large, it can be revoked by the same means as offered, so long as equally prominent

Answer 34

Shuey v United States