Contract - Offer and Acceptance

Question 1

Bilateral Offer

Answer 1

Mutual exchange of promises by both parites

Question 2

Unilateral Offer

Answer 2

A promise to do something in return for an act

Question 3

Gibson v Manchester City

Answer 3

Offer has to be expressed clearly through language; cannot be tentative
- Offerree said ‘they may’ - did not constitute to an offer

Question 4

Storer v Manchester CC

Answer 4

An offer was made due to the clear language used throughout the negotiation process

Question 5

Fisher v Bell

Answer 5

A shop window display is usually an invitation to treat
- Display of the flick knife was not an offer so the Offensive Weapons Act was not breached

Question 6

PSG v Boots

Answer 6

Offer only happens when you get to the cashier; display of goods on shelves is not an offer

Question 7

Leftkowitz v Great Minneapolis Surplus Store

Answer 7

An advert can be considered a valid offer if it includes clear and defined terms

Question 8

Invitation to Tender

Answer 8

Process by which qualified suppliers are invited to submit bids to provide a specific service or supply specified goods

Question 9

Spencer v Harding

Answer 9

An invitation to tender is normally an invitation to treat, not offer
- Spencer sent in the highest offer but Harding did not have to accept it as they did not state “we will sell to the highest bidder”

Question 10

Harvela Investments v Royal Trust Co of Canada

Answer 10

Referential bids cannot form the basis of a valid offer
- e.g. you can’t bid saying “i will pay x amount of money more than your highest offer”

Question 11

Blackpool + Fyde Aero Club v Blackpool BC

Answer 11

“if C submits a conforming tender before the deadline he is entitled, … to be sure that his tender will after the deadline will be opened and considered”

Question 12

Dickinson v Dodds

Answer 12

Revocation of an offer must be communicated and can be revoked any time before there is acceptance

Question 13

Errington v Errington

Answer 13

Withdrawal of an offer in a unilateral contract - if one party has started to perform part of the deal you cannot revoke the offer

Question 14

How do we know an offer has been accepted?

Answer 14

Through communication

Question 15

Felthouse v Bindley

Answer 15

Acceptance can be by word; silence does not amount to acceptance

Question 16

Brogden v Metropolitan Railway

Answer 16

Acceptance by conduct; binding contract if there is any performance without any objection

Question 17

Manchester Diocesan

Answer 17

You need to specify a method of acceptance if it is the only one you need

Question 18

Hyde v Wrench

Answer 18

Acceptance has to mirror the offer; counteroffers kill the original offer

Question 19

Butler Machine Tool Ltd

Answer 19

You cannot respond to an offer with your own terms

Question 20

RTS Flexible v Mueller

Answer 20

whether there is a binding contract depends on what was communicated between the parties whether by word or conduct, not by the subjective state of mind

Question 21

Smith v Hughes

Answer 21

Objectivity test - if the reasonable man would think a person was accepting another’s offer, that offer will be deemed accepted

Question 22

Postal Rule

Answer 22

• As soon as a letter is put into post that constitutes acceptance (Adam v Lindsell)
• Acceptance is still valid, even if the letter is lost or destroyed in the post (Household Fire v Grant)

Question 23

Henthorn v Fraser

Answer 23

• Revocation by post only takes place when it arrives with the other party
• If it is not reasonable to use the post, then the postal rule will not apply (e.g. postal strikes)

Question 24

Acceptance by Instantaneous Communications

Answer 24

Postal rule does not apply; receipt is required

Question 25

Entores

Answer 25

“Contract is only complete when acceptance is received”

Question 26

Brinkibon v Stahag Stahl

Answer 26

Acceptance should take effect when the offeree might reasonably expect it to have been communicated to the offeror
- can be likened to a telephone call - as soon as you hear the acceptance that is when the acceptance takes place

Question 27

Auctions

Answer 27

Offering items for sale at auctions are invitations to treat. Bids by potential purchasers are offers which can be accepted by the fall of the auctioneer’s hammer

Question 28

Walow v Harrison

Answer 28

Auctioneer is the agent acting on behalf of the person contracting; bidding is the acceptance