Formation of contracts and estoppel

Question 1

What is the definition of consideration?

Answer 1

A benefit to one party and a detriment to another”
OR
“A promise in return for a promise”

Question 2

Past consideration is not good consideration

Answer 2

Roscorla v Thomas

Question 3

What are the exceptions to past consideration not being good consideration?

Answer 3

Lampleigh v Braitwaite
The act was at the promisor’s request
And 
Re Casey’s Patents
It was understood from the outset there would be some type of payment

Question 4

Collins v Godefry

Answer 4

Performance of a public duty is not good consideration

Question 5

Performance of a public duty is not good consideration

Answer 5

Collins v Godefry

Question 6

Performance of a public duty is not good consideration unless…

Answer 6

Glasbrook Bros v Glamorgan CC
Ward v Byham
It goes beyond what is usually required

Question 7

Contractual Duties owed to a third parties are good consideration

Answer 7

Scotson v Pegg

Question 8

Part performance of an existing contractual duty does not amount to good consideration

Answer 8

Stilk v Myrick

Question 9

If you exceed the contractual obligation then that is good consideration

Answer 9

Hartley v Ponsonby

Question 10

Williams v Roffey

Answer 10

Where a party has gained “practical benefit” from the original contract being performed then that will be good consideration, as long as the additional payment or new contract is not made under duress.

Question 11

Foakes v Beer

Answer 11

Part payment of a debt is not good consideration.

Question 12

Part payment of a debt is not good consideration unless..,.

Answer 12

Pinnel’s Case, the creditor gets something different in return

Question 13

What is the judgement in Re Selectmove?

Answer 13

The principle in Roffey does not apply for debts

Question 14

What is Treitel’s definition of an offer?

Answer 14

“An expression of willingness to contract on certain terms- made with the intention that it becomes binding”

Question 15

“The existence of an offer is objectively assessed.” Which case?

Answer 15

Smith v Hughes

Question 16

Goods on display in a shop window are invitations to treat. Which case?

Answer 16

Fisher v Bell

Question 17

Boots Cash Chemist v Royal Pharmaceutical Society

Answer 17

Goods on shelves in shops are invitations to treat

Question 18

Advertisements for rewards are unilateral offers.

Answer 18

Williams v Cawardine

Question 19

Where the wording of an advertisement creates an action on the other side or reliance, it will be an offer.

Answer 19

Carlill v Carbolic Smoke Ball

Question 20

Where an advertisement specifies a tender process would accept the highest offer, it is an offer.

Answer 20

Harvela

Question 21

Aero Club

Invitations to tender that lay down a clear procedure are an offer to consider the tender.

Answer 21

Blackpool and Fylde Aero Club v

Question 22

In auctions, the auctioneer is bound to accept the highest offer and can be sued by the offeree if they don’t.

Answer 22

Barry v Davies

Question 23

An offer is revocable up to the point it is accepted

Answer 23

Routledge v Grant

Question 24

For a revocation to be valid, it must be communicated.

Answer 24

Van Tienhoven

Question 25

If a revocation is sent during office hours it can be assumed it was communicated.

Answer 25

The Brimnes

Question 26

Revocation can be communicated through a third party.

Answer 26

Dickinson v Dodds

Question 27

Hyde v Wrench. What is the ruling?

Answer 27

A counter offer destroys the original offer

Question 28

If a statement is a request for more information, it will not destroy the offer

Answer 28

Stevenson Jacques v Maclean

Question 29

Acceptance must be communicated

Answer 29

Entores v Miles Far East Corporation

Question 30

The general rule is that acceptance must be communicated by the offeree or his authorised agent

Answer 30

Powell v Lee

Question 31

If the postal rule applies the acceptance will be valid when posted.

Answer 31

Adams v Lindsell

Question 32

Holwell Securities v Hughes

Answer 32

The offeror may exclude the postal rule.

Question 33

The postal rule may apply even if the letter gets lost in the post

Answer 33

Household Fire Insurance Company v Grant

Question 34

Can a term be implied in if it is necessary for the contract to make business sense?

Answer 34

Yes, the business efficacy rule in The Moorcock

Question 35

Which implied test is this? “Is it something that if an officious bystander had asked at the time of contracting, both parties would have agreed to happily?”

Answer 35

Officious bystander test. Shirlaw v Southern Foundries

Question 36

Innominate terms can be conditions if the breach is serious and warranties if it is not.

Answer 36

Hong Kong Fir Case

Question 37

What are the 4 conditions for promissory estoppel to apply?

Answer 37

• The promisor must give a promise to waive a legal right
• The promisor must act upon that promise
• It must be inequitable for the promisor to insist on their original rights (D&C Builders v Rees)
• It is a shield not a sword.

Question 38

For promissory estoppel to apply it must be inequitable for the promisor to insist on their original rights

Answer 38

D&C Builders v Rees

Question 39

A promisor can regain their legal rights if they give reasonable notice

Answer 39

Tool Metal v Tungsten

Question 40

Ajayi v Briscoe (Nigeria)

Answer 40

A strict legal right is extinguished where a party cannot resume their prior position.