Contracts, Offers And Acceptance

Question 0

What are the six factors that could make a contract defective or unenforceable?

Answer 0

Capacity, mistake, misrepresentation, illegality, duress or undue influence.

Question 1

What are the three basic essential elements of a contract?

Answer 1

Agreement between parties, intention to be legally bound and consideration given by both parties

Question 2

What are the three ways in which a contract can be made?

Answer 2

Written, orally or by conduct

Sometimes all three at once

Question 3

What contracts can be made orally?

Answer 3

Retail/supermarket purchases and selling of own goods

Question 4

What contracts can be made by conduct?

Answer 4

For these types of contracts you do not necessarily have to speak, such as buying goods from a vending machine.

Question 5

What is an agreement?

Answer 5

An offer plus an acceptance.

Question 6

What is a offer?

Answer 6

An expression of willingness to contract, on certain terms made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

Question 7

Who can an offer be made to?

Answer 7

An individual, a group of people or to everybody

Question 8

What case demonstrates an offer made to everybody?

Answer 8

Carlill v Carbolic Smoke ball co [1893]

Question 9

What must be certain and clearly communicated?

Answer 9

An offer and acceptance.

Question 10

What is a declaration of intention?

Answer 10

When one person states his intention to hold a sale. This may not necessarily go ahead. For example a poster saying the fair is coming is just a declaration of intention as weather depending it may not go ahead.

Question 11

What case demonstrates a declaration of intention?

Answer 11

Harris v Nickerson (1873)

Question 12

What is an invitation to treat?

Answer 12

Simply an invitation to make an offer, seen as apart of the negotiations leading up to a contract.

Question 13

What case demonstrates an invitation to treat?

Answer 13

Gibson v Manchester City council [1979]

Question 14

At an auction when is an acceptance made, and what case demonstrates this?

Answer 14

At the fall of the hammer.

Payne v Cave (1789)

Question 15

What are goods displayed in shop windows or on supermarket shelves considered as, in the sense of a contract?

Answer 15

Invitation to treat.

Question 16

What case demonstrates that goods displayed in a shop window are merely invitations to treat?

Answer 16

Fisher v Bell [1960]

Question 17

What case demonstrates that goods displayed on supermarket shelves are merely invitations to treat?

Answer 17

Pharmaceutical society of Great Britain v Boots (cash chemist) southern ltd [1953]

Question 18

What are the six ways an offer can be terminated?

Answer 18

Rejection, counter-offer, revocation, lapse of time, non-occurrence of a condition and death.

Question 19

What is a counter-offer?

Answer 19

A counter-offer is when you reject the first offer (or specific terms/conditions within an offer) and re-negotiate new conditions/terms.

Question 20

What case demonstrates a counter-offer?

Answer 20

Hyde v Wrench (1840)

Question 21

What is revocation of an offer?

Answer 21

Withdrawing an offer before it is accepted.

Question 22

When does revocation take effect, if posted?

Answer 22

Contrary to the postal rule of acceptance, revocation takes place once the letter has arrived.

Question 23

What case demonstrates when revocation should take effect?

Answer 23

Byrne and co v Van Tienhoven and co (1880)

Question 24

When can an offer be terminated through lapse of time?

Answer 24

If an offer is open for a specific amount of time, which is clearly stated, then the offer will lapse after the specified time. An offer may also be terminated through lapse of time after a reasonable amount of time, for example 'a boatload of oranges is treated differently from a car.'

Question 25

When will the death of the offeror cause a termination of a an offer?

Answer 25

If the offeror was providing personal services or any other offer that has not been accepted, provision the offeree has been sufficiently notified.

Question 26

What is an option?

Answer 26

A promise to keep an offer open, held within a separate and enforceable contract.

Question 27

What case demonstrates a valid option?

Answer 27

Mountford v Scott [1975]

Question 28

What is an acceptance?

Answer 28

An acceptance is a clear, unambiguous (unequivocal) statement agreeing to, and accepting the offer.

Question 29

When can acceptance be made?

Answer 29

Whilst the offer is still in force, and before the offer has lapsed, been revoked, or rejected.

Question 30

What does it mean by "acceptance must be unqualified (unconditional)"?

Answer 30

This means that the negotiations and bargaining have been completed and that the acceptance corresponds with the offer.

Question 31

Can silence constitute to acceptance? And what case demonstrates this?

Answer 31

No, acceptance must be communicated. | Felthouse v Bindley (1862)

Question 32

What three methods can be used to accept an offer?

Answer 32

Communicated either, orally, in writing or inferred from conduct.

Question 33

What is a unilateral contract?

Answer 33

A contract which is non-negotiable that is accepted by fully performing the required act.

Question 34

What case shows a unilateral contract?

Answer 34

Carlill v carbolic smoke ball co [1893]

Question 35

What is a bi-lateral contract?

Answer 35

A contract which is negotiable.

Question 36

What two cases shows a bi-lateral contract?

Answer 36

Fisher v Bell [1960]; Pharmaceutical Society of Great Britain v Boots Cash Chemist [1953]

Question 37

Can a offer of a unilateral contract be withdrawn prior full acceptance?

Answer 37

No, an offer of a unilateral contract is irrevocable once performance has started.