Contract Law: Offer and Acceptance (L3) Flashcards

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1
Q

What is a ‘contract’?

A
  • A legally binding agreement between two or more parties
  • Vast majority are entered into without formalities
  • Can be in oral or written form
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2
Q

What are the two types of contracts? (Broadly)

A
  • Speciality contracts
  • Simple contracts
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3
Q

What are the three types of speciality contracts?

A
  • Agreements which must be created in the form of a deed
  • Agreements which must be made in writing
  • Agreements which need only to be evidenced in writing
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4
Q

Define an offer in contract law.

A

An offer is a proposal made on certain terms by the offeror with a promise to be bound by that proposal if the offeree accepts the terms.

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5
Q

Who is the offeror?

A

The person making the offer.

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6
Q

Who is the offeree?

A

The person receiving the offer.

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7
Q

What is an invitation to treat?

A

Merely an invitation to negotiate.

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8
Q

Give examples of an invitation to treat.

A
  • Advertisements: Partridge v Crittenden (1968)
  • Goods displayed (in a shop) for sale: Fisher v Bell (1961)
  • Goods displayed (in shelves) for sale: Pharmaceutical Society (GB) v Boots Cash Chemists (1953)
  • Auctions: auctioneers request for bids is an invitation to treat and each bid is an offer that can be retracted at any time before the fall of the hammer
  • Tenders
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9
Q

True or False: Advertisements are always considered invitations to treat.

A

False

  • Advertisements may sometimes constitute offers to the public at large.
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10
Q

What is a counter-offer?

A

A counter-offer terminates the original offer.

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11
Q

What are the ways to terminate an offer?

A
  • By acceptance
  • By rejection (includes making a counter-offer)
  • By revocation (withdrawal) of an offer
  • By lapse of time
  • When reasonable length of time has passed
  • By failure of a precondition
  • Death of the offeree
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12
Q

What must acceptance be in termination of an offer?

A

Absolute, unconditional and communicated to the offeror.

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13
Q

True or False: Silence can amount to acceptance.

A

False

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14
Q

What is the postal rule regarding acceptance?

A

Acceptances by post take effect when they are posted, rather than when they are communicated.

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15
Q

What are exceptions to the postal rule?

A
  • Offeror may specify manner of acceptance Holwell Securities v Hughes (1974)
  • Instantaneous methods of communication (e.g. telephone, fax) do not follow the postal rule
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16
Q

When is acceptance of an offer to enter into a unilateral contract usually accepted?

A

By conduct.

17
Q

What is the ‘Battle of the forms’?

A

A situation where two parties send standard forms to each other that do not match, leading to confusion over the terms of the contract.

18
Q

In the ‘Battle of the forms’, who typically wins?

A

The party who fires the last shot.

19
Q

What is the case of Carlill v. Carbolic Smoke Ball Co. (1893) known for?

A

It is an example of an offer to enter a unilateral contract.

20
Q

What is a ‘mere puff’?

A

A hyperbolic exaggeration which was not intended to be taken seriously.

21
Q

What happens if an offer is revoked?

A

An offer may be withdrawn at any time before acceptance, but revocation must be communicated.

22
Q

What did the case of Brinkibon Ltd. v. Stahag Stahl (1983) establish?

A

Communication of acceptance takes effect when it could be read rather than when it is actually read.

23
Q

Fill in the blank: The general rule for _______ by post is that they take effect when they are posted.

A

acceptances