formation of a contract

Question 1

what is the difference between and offer and an invitation to treat

Answer 1

an invitation to treat is negotiable and an offer is a clear offer

Question 2

Gibson v Manchester city council

Answer 2

council told gibson house may be prepeared to sell the house to you. invitation to treat not offer.

Question 3

Storer v Manchester City Council

Answer 3

storer received a communication from the council where the leter included words which showed it was an offer not an invitation to treat.
legal principle - a legal binding was made when the council got in contact with him
this case outlines offer is an expression of willingness to a contract on specified terms
With the intention that it is to be binding once accepted

exams may ask you to talk about the reasonable man test -

Question 4

what are advertisements usually classed as

Answer 4

an invitation to treat unless it is a unilateral contract.

Question 5

what is the case that sets the precedent of an invitation to treat via advertisements

Answer 5

Partridge v Crittenden

Question 6

partridge v Crittenden

Answer 6

d was charged for offering a wild live bird which goes against the laws that protects birds. He had placed a an advertisement. he was found not guilty.
Legal princple – advertisement was seen as an invitation to treat and not an offer.

Question 7

fisher v bell

Answer 7

a knife was displayed with a price in a shop to offer this is an offence against offensive weapon acts. d was found not guilty
legal principle - goods in a shop window are an invitation to treat not an offer

Question 8

Pharmaceutical society of great Britain boots cash chemists

Answer 8

boots were charged with selling pharmaceutical products not under staffs supervision. however it was a self select shelf which then the pharmacy had to sell to the customers.
boots were found not guilty as the offer was made by the customer which the pharmacist had to approved
Legal principle - self check out is means offer was made by the customer which pharmacist had to approved Legal principle

Question 9

auction

Answer 9

the bidder is the one to make the offer that teh auctioneer then acccepts or denies by the banging of their hammer. this means lots at an auction are are invitation to treat

Question 10

British Car auctions v wright

Answer 10

auctioneers were prosecuted for offering to sell a unfit vehicle. However it was an invitation to treat not an offer.

Question 11

harvey v Facey

Answer 11

farm. harvery wanted to buy a farm and asked for the lowest price.
legal principle - Request for information is not an offer

Question 12

what contracts in advertisements are offers and not an invitation to treat.

Answer 12

unilateral contracts

Question 13

what is a unilateral contract

Answer 13

if the person chooses to perform the act there will be a legal binding.
a one sided contract agreement in which an offeror promises to pay only after a completion of a task by teh offeree.

Question 14

Carlill v Carbolic smoke ball

Answer 14

unilateral contract - the Carbolic Smoke Ball Company, placed an advertisement in a newspaper for their products, saying whoever purchases and uses their product but still contracted influenza despite properly following the instructions would be entitled to a £100 reward.
legal priniciple - uniliteral contracts are performed based onif bthe person chooses to peform the act, there will be a binding unlitaral contract.

Question 15

bilateral contract

Answer 15

requires both offeror and offeree to do something both have obligations

Question 16

who can offers be made by

Answer 16

they can be made by anyone, to anyone a group of people or to the whole world they can also be made through machines and electronice via emails also a notice

Question 17

Thornton v Shoe lane parking

Answer 17

mr thornton put money in the machine and got a parking ticket the offer was made by the machine on half of the company.
legal principle - acceptance was made by putting the money. whis was where the contract was made. terms displayed.

Question 18

acceptance
when can an offer be made

Answer 18

An offer can be made when the offer is still open. t is essential to establish when the offer started and when it ends.

Question 19

when does the offer start and when does it end

Answer 19

the offer strats when it is communicated to the offereee. communication is key

Question 20

Key case for acceptance

Answer 20

Taylor V Larid
taylor gave up being a captain on the ship. He needed to get bcak to england so he decided to work s an ordinary crew memeber but recieved no wages for this. he did not get paid due to not communicating with the ship owner.

legal principle - clear communication needed for offer

Question 21

Williams v cawardine

Answer 21

reward for giving information that led to a convicted murder
legalprinciple-the plaintiff was entitled to the reward as she knew about it and her motive in giving the information was irrelevant

Question 22

key case for timing being crucial

Answer 22

Stevenson v Mclean

Question 23

Stevenson v Mclean

Answer 23

legal principle - there was no specific wording to indicate that it was a counter offer or rejection.

Question 24

what is revocation.

case for revocation - Byrne v Van Tienhoven EDIT
errington v errington

Answer 24

revocation of an offer is withdrawal of an offer by the offeror before the offeree has accepted it. revocation must be communicated the offoreeto be valid.

Question 25

rejection

Answer 25

once an offer is rejected you cannot be accepted by the person who rejected as the rejection end the offer however that doesn’t mean that the offer isn’t available to other.

Question 26

lapse of time

Answer 26

an offer can come to an end by lapse of time if a fixed period for the duratrion offer is stated then as soon athat time frame expires there in no offer to accept. Problems arise whne there is no time set.

Question 27

lapse of time key case

Answer 27

Ramsgate Victoria Hotel v Montefiore

Question 28

Death

Answer 28

if the offeree dies than the offer ends and those who dealing with the offorees estate cannot accept the offer on his behalf. however it can get transfered f it not personal they can make a new offer as the offeree.

Question 28

Ramsgate Victoria Hotel v Montefiore

Answer 28

d offered to purchase shares in the claimants company. 6 months later the claimant accepted this offer by which time the value of shares had fallen. D had not withdrawn the offer but refused to go through with the sale ,
Legal principle - the offer was no longer open as due to the contract lapsed due to a reasonable period of time. therefore there was no contract.

Question 29

acceptance

Answer 29

a final and unconditional offer to all the terms of an offer.
acceptance can be in any form
acceptance cannot be by silence
acceptance can be by conduct. - particularly in unilateral contracts - e,g CARLILL

Question 30

counter-offer

Answer 30

acceptance must correspond exactly to the terms of the offer.

Question 31

the postal rule

Answer 31

when accepting offers via posts there is ruels. only to acceptnace offer not offer letter,

Question 32

when do the ruels apply for postal rules

Answer 32

when it is an accepting letter not an offer letter

when post is the usual means of communication

the letter must be properly addressed and stamped.

offeror must prove letter was posted.

if all of the above happens then acceptance takes place at the moment the letter is posted not when the offeree has received the letter.

Question 33

Taylor V Larid

Answer 33

Key case for Acceptance
Taylor gave up being a captain on the ship. He needed to get back to England so he decided to work s an ordinary crew member but received no wages for this. he did not get paid due to not communicating with the ship owner.

legal principle - clear communication needed for offer

Question 34

william v cawardine

Answer 34

provision on information led to a conviction of murder.
lp - she knew about the offer therefor she can claim her reward it doesn’t matter how she found the information out.

Question 35

stevenson vs mclean

Answer 35

credit was only an enquiry. a binding contract was made at 1.34pm

Question 36

when does an offer end.

Answer 36

revocation
rejection
death
lapse of time
acceptance
counter - offer

Question 37

key points for acceptance

Answer 37

-m acceptance can be in any form and does not have to be in the same format as teh offer was in.
acceptance must be communicated and full acceptance is needed.
acceptance can not be by silence
acceptance can be made by conduct, patricianly in unilateral contracts eg CARLILL

Question 38

felthouse v Bindley

Answer 38

acceptance can not be by silence.

Question 39

key case for postal rule

Answer 39

Adams v lindsell
Lindless wrote a letter to adams and offered to sell wool to Adams. letter was delayed in post. Adams posted a letter of accpetance. However due to the delay Lindsell assumed Adams did not want the wool and sold it to someone else.

Legal principle - postal rule apply.
ASK MISS why does postal rule not apply when the letter was adressed wrongly.

Question 40

Byrne v Van Tienhoven

Answer 40

even if the letter is lost in the post never received by the offoror the acceptance has stilll taken place,.
This is differant to the usual rule of acceptance which only occurs when it has been communicated to the offeror.

Question 41

Electronic methods for acceptance

Answer 41

• opposite to the postal rule.
• acceptance only occurs via email. electornic methods. when teh offeror is aware of teh acceptance. if this is verbal, both parties must have heard it.

Entores v Miles

Question 42

Key quote from Lord Denning in Entores V miles

Answer 42

• if a man shouts an offer to a man across a river but the reply is not heard because of a plane flying overhead, there is no contract.. the offoree must wait and then shout back his acceptance so that the offeror can hear it.

Question 43

key quote from Lord Denning in entores v Miles has the same for electronic methods too

Answer 43

Entores v Miles - entores miles for east corporation.
Playntifs were wneglsih compay contracting with D in America.
- each company had a teleprinter in the office.
- members connect to eachother - instantly send messeges.
lp - acceptance takes place was message has been sent,

Question 44

if it an email is sent within working hours it is assumed they will have it then read it then and therefore valid, it is really important to note when the email was sent - as it aligns with the usual rule of acceptance which is that it takes placwe when it is communicated to the offeror.

Answer 44

however the courts will reach a decision based on particular facts of a case.

Question 45

key case for electronic methods of acceptance

Answer 45

thomas and Gander v BPE Solicitors (2010)

Mondial shipping v astarte shipping

Question 46

Thomas and gander v BPE Solicitors 2010

Answer 46

An email of acceptance was received at 6pm. Friday before the bank holiday. email was no read until Tuesday mornning. bpe solicitor argued acceptance was not effective from thenoment it was recieved because it was after working hours.
court held that it was reasonable for the email to b seen.
legal principle - timing is key for instance communication was it within worktime hours
- ask miss if 6pm is considered workinhg hous.

Question 47

monial shopping v astarte shopping

Answer 47

a message was sent at midnight on a Friday withdrawing a ship from a charter. the revocation was crucial as they would have been in breach
held - notice was only effective on the next working day. monday

Question 48

hyde v wrench

Answer 48

ofered to sell a farm
- counter offer rejects the norm al offer. end the offer.