Contract Formation (L4)

Question 1

What is consensus in idem?

Answer 1

‘Meeting of the minds’.

Question 2

What is an offer?

Answer 2

DCFR 11.4.201:
(1) A proposal amounts to an offer if:
(a) It is intended to result in a contract if the other party accepts it, and;
(b) It contains sufficiently definite terms to form a contract.
(2) An offer may be made to one or more specific persons or to the public.

Stair 1,10,3.
“An offer accepted is a contract, because it is the deed of two, the offeror and the acceptor”.

Question 3

Coincidence of offer + acceptance.

Answer 3

Mathieson Gee (Ayrshire) Ltd v Quigley 1952.
- Quoted for price of machinery only, not labour.
- Situation where the offer was not for the same thing as the acceptor believed it to be.
- HL held there was no contract at all. No consensus in idem.

Question 4

What are the characteristics of an offer?

Answer 4

• A proposal to enter into a contract.
• Intention to be legally bound.
• Sufficiently definite terms.
• Can be withdrawn up to point of acceptance.

Question 5

What is an invitation to treat?

Answer 5

• Invitation to make an offer.
• Response = offer.
• No intention to be legally bound.
• e.g ads (Grainger & Son v Gough [1896].
• Leonard v Pepsico, Inc.

Question 6

Carlil v Carbolic Smoke Ball Co [1893].

Answer 6

OFFER V INVITATION TO TREAT….
- Held that it was actually an offer. Mrs Carlil entitled to pay out from company.