Essential requirements of contract Flashcards
Offer and Acceptance
What is the definition of an ‘offer’ in contract law?
An offer is a clear proposal made by one party to another indicating a willingness to enter into a contract on specific terms.
True or False: An invitation to treat is considered an offer.
False
Fill in the blank: An offer must be _____ to be valid.
communicated
In which case was it established that an advertisement can be an offer?
Carlill v Carbolic Smoke Ball Co
What is the legal significance of the case ‘Hyde v. Wrench’?
It established that a counter-offer destroys the original offer.
What is the difference between an offer and an invitation to treat?
An offer is a definitive proposal to form a contract, while an invitation to treat is merely an indication that one party is willing to negotiate.
What does ‘acceptance’ mean in contract law?
Acceptance is the unqualified agreement to the terms of an offer.
True or False: Acceptance can be made in any form.
True
What is the ‘postal rule’ in relation to acceptance?
The postal rule states that acceptance is effective when it is posted, not when it is received.
In which case was the postal rule established?
Adams v Lindsell
What is required for acceptance to be valid?
Acceptance must be communicated to the offeror.
Fill in the blank: A conditional acceptance is treated as a _____.
counter-offer
What is a ‘unilateral contract’?
A unilateral contract is a contract where one party makes a promise in exchange for the performance of an act by another party.
In which case did the court rule that performance of a condition constitutes acceptance?
Carlill v Carbolic Smoke Ball Co
What is ‘revocation’ in the context of an offer?
Revocation is the withdrawal of an offer before it has been accepted.
True or False: An offer can be revoked after acceptance has taken place.
False
What is the ‘mirror image rule’?
The mirror image rule states that acceptance must exactly match the terms of the offer.
In which case was the mirror image rule highlighted?
Hyde v Wrench
What is ‘consideration’ in contract law?
Consideration is something of value exchanged between parties that is necessary for a contract to be binding.
Fill in the blank: An offer can lapse after a certain period of _____ or upon the death of the offeror.
time
What is one way an offer can end?
An offer can end by acceptance.
True or False: An offer can be revoked before acceptance.
True.
Fill in the blank: An offer automatically ends when the offeror __________.
dies.
What is the term for the expiration of an offer after a specified time period?
Lapse of time.
Which case established that an offer can be revoked before it is accepted?
Byrne & Co v Leon Van Tienhoven & Co.
What happens to an offer if the subject matter of the offer is destroyed?
The offer ends.
True or False: An offer can be terminated by rejection.
True.
What is the effect of a counter-offer on the original offer?
It terminates the original offer.
Fill in the blank: An offer can end through __________ of the offeree.
rejection.
What legal principle states that an offer must be communicated to the offeree?
The principle of communication.
True or False: An offer remains valid indefinitely until accepted.
False.
What occurs when an offer is accepted but the acceptance is conditional?
It becomes a counter-offer.
What is one reason an offer may lapse?
If a reasonable time has passed without acceptance.
Which case illustrates that an offer can be revoked at any time before acceptance?
Routledge v Grant.
Fill in the blank: An offer can end due to __________ of the offeror’s mental capacity.
incapacity.
What is the legal term for a situation where an offer is made and then retracted?
Revocation.
True or False: An offer can be made to the public and can end by public withdrawal.
True.
What is the effect of a unilateral offer being accepted?
It creates a binding contract.
What can happen to an offer if the offeree makes a counter-offer?
The original offer is terminated.
Fill in the blank: An offer may end if the __________ of the offer is no longer possible.
performance.
