FORMATION; OFFER

Question 1

What is an offer? (1)

Answer 1

a proposal (or promise) showing a willingness to contract on firm and definite terms.

Question 2

what is an offeror? (1)

Answer 2

the person who makes the offer.

Question 3

what is an offeree? (1)

Answer 3

the person to whom an offer is made.

Question 4

what case relates to uncertainty in terms? (1)

Answer 4

Gibson v Manchester City Council (1979)

Question 5

what is an invitation to treat? (1)

Answer 5

an indication that one person is willing to negotiate a contract with another, but that he or she is not yet willing to make a legal offer.

Question 6

what is a bilateral contract? (1)

Answer 6

this requires both offeror and offeree to do something. both parties have obligations.

Question 7

what is a unilateral contract? (1)

Answer 7

an agreement to pay in exchange for performance, if the potential performer chooses to act. there is no obligation to perform the act

Question 8

what cases cover advertisements in terms of invitation to treat? (2)

Answer 8

Partridge v Crittenden (1968)
Carlill v Carbolic smoke ball co. (1893)

Question 9

what cases cover goods in a shop window or on a shop shelf? (2)

Answer 9

Fisher v Bell (1961)
Pharmaceutical society of great Britain v boots cash chemists (1953)

Question 10

what cases cover lots at an auction? (1)

Answer 10

British car auctions v Wright (1972)

Question 11

what cases cover requests for information? (1)

Answer 11

Harvey v Facey (1893)

Question 12

what cases cover which individuals can make an offer? (1)

Answer 12

Thornton v shoe lane parking (1971)

Question 13

what cases cover to whom an offer can be made to? (3)

Answer 13

individual - Gibson v Manchester city council (1979)
to a group of people - British car auctions v Wright (1972)
the world - Carlill v carbolic smoke ball co (1893)

Question 14

what cases cover how long offers can last? (2)

Answer 14

Taylor v Laird (1856)
Stevenson v Mclean (1880)

Question 15

what cases relate to revocation of an offer? (2)

Answer 15

Routledge v Grant (1828)
Dickinson v Dodds (1876)

Question 16

what cases relate to rejection of an offer? (1)

Answer 16

Hyde v Wrench (1840)

Question 17

what is a counter offer? (1)

Answer 17

a response to an offer which makes a firm proposal that materially alters the terms of an offer.

Question 18

what cases relate to lapse of time in terms of an offer? (1)

Answer 18

Ramsgate Victoria hotel v Montefiore (1866)

Question 19

What factors contribute to the ending of an offer? (7)

Answer 19

-offer not communicated to offeree
-offer must exist to be open for existence
-revocation of offer
-communication of revocation of offer
-offer rejected
-offer lapsed
-death of one party

Question 20

what occurred in the Harvey v Facey case and give the date. (4)

Answer 20

Harvey sent a message to Facey asking for the lowest price in which he would sell his land (farm), Facey gave the price in response, once Harvey tried to buy his land for this price he was unsuccessful as Facey’s reply was merely a response to his message not an offer. (1893)

Question 21

what occurred in the British car auctions v Wright case and give the date. (3)

Answer 21

The auctioneers were prosecuted for offering to sell an unfit vehicle at an auction. Prosecution failed because there was no offer, only an invitation to treat. (1972)

Question 22

what occurred in the Thornton v shoe lane parking case and give the date. (4)

Answer 22

Thornton put money into a ticket parking machine, the offer was made by the machine on behalf of the company owning the car park. The acceptance was made by putting the money into the machine. This was where the contract was made which dictated the terms were in the contract (the terms displayed on the machine). (1971)

Question 23

what occurred in the Taylor v Laird case and give the date. (3)

Answer 23

Taylor gave up the captaincy of a ship whilst it was still overseas, he worked as an ordinary crew member while on the ship in order to get back to England but received no wages. The ship owner was not made aware of his offer to work as a regular crew member and therefore no contract could exist. (1856)

Question 24

what occurred in the Stevenson v Mclean case and give the date. (4)

Answer 24

the offeror offered o sell an iron to the offeree, the offer was supposed to be open until Monday, on Monday morning the offeree communicated he could credit the terms and received no reply, he sent another communication later that afternoon accepting the offer. Offeree sued for breach of contract, decided that the query of credit was an enquiry but the acceptance of offer was an offer. (1880)

Question 25

what occurred in the Routledge v grant case and give the date. (3)

Answer 25

Grant offered his hose for sail stating the offer would remain open for 6 weeks, when he told Routledge he no longer wished o sell this was an effective revocation of the offer even if it was within the 6 week period. Routledge could not accept the offer. (1828)

Question 26

what occurred in the Dickinson v Dodds case and give the date. (3)

Answer 26

Dodds offered to sell his house to Dickinson, when a reliable person known to both of them told Dickinson that Dodds withdrew his offer, this was an effective revocation. (1876)

Question 27

what occurred in the Hyde v Wrench case and give the date. (3)

Answer 27

Wrench offered to sell his house to Hyde, Hyde made a counter offer which Wrench rejected. Hyde replied he accepted Wrench’s first offer however the counter offer ended Wrench’s original offer so Hyde could not accept it. Wrench could have accepted Hyde’s offer but did not do so. (1840)

Question 28

what occurred in the Ramsgate Victoria hotel v Montefiore case and give the date. (4)

Answer 28

Montefiore offered to buy shares at a fixed price in the hotel, later in the year his offer was accepted but he no longer wanted them as the share price had fallen so he refused to pay. It was held that the long delay between the offer and acceptance meant the offer had lapsed and could no longer be accepted. (1866)

Question 29

what occurred in the Gibson v Manchester city council case and give the date. (4)

Answer 29

Gibson was a council tenant, the council wrote to him stating that the council would be able to sell this house to him if he filled out an application. he completed the application but the council refused to accept his application. decided; the councils letter was not an offer , it was not a firm and definite proposal as it ‘may be prepared’ his offer was rejected. (1979)

Question 30

what occurred in the Partridge v Crittenden case and give the date. (4)

Answer 30

Crittenden placed an advert stating that Bramblefinch cocks were for sale and he price he was prosecuted for offering for sale a wild bird under the protection of birds act 1954. he was not guilty as the ad was not an offer but an invitation to treat. an offer leading to a contract would be made by the person responding. (1968)

Question 31

what occurred in the Carlill v carbolic smoke ball co. case and give the date. (4)

Answer 31

Company advertised a patent medicine which stated that if someone (not needed to be the person who brought it) used it correctly and still got the flu then the company would pay them £100. Carlill did get the flu, the court awarded her the £100, the promise as an offer who could be accepted by anyone who followed the terms. the contract was an unilateral offer. (1893)

Question 32

what occurred in the Fisher v Bell case and give the date. (3)

Answer 32

a shopkeeper displayed a flick knife with a price tag in his window. he was charged with offering it for sale under the offensive weapons act 1959. the display of the knife was an invitation to treat so the knife in the window was not up for sale. he was therefore not guilty. (1961)

Question 33

what occurred in the Pharmaceutical society of great Britain v boots cash chemists case and give the date. (4)

Answer 33

boots was charged with selling controlled pharmaceutical products other than the supervision of a pharmacist. The shop was self service, the customers had to select the items themselves. they were found not guilty as the offer was made by the customer at the till where the pharmacist was present to approve the acceptance of the offer. (1953)