Midterm Study Flashcards
The Mirror Rule
The acceptance must mirror the offer ex: offer proposed at $1000, acceptance for $1000
Can acceptance be deemed or assumed?
Yes or No
No, it cannot be deemed or assumed. Think about the case with the uncle offering to buy the horse from the nephew and saying if I dont hear back its mine (Felthouse v Bindley)
D offers to P, P counters, D rejects, deal is closed. P sends another offer, D has no response, is this valid?
No not valid because P essentially made a new offer (Hyde v Wrench)
Which of these can be assumed?
Acceptance?
No Acceptance?
No Acceptance can be assumed while Acceptance cannot
Invitation to treat (stores)
inviting offer
Offer (vending machine)
no negotiation, has everything needed to be accepted
Which of these ways can an offer not be accepted?
A) In person
B) By telephone
C) In writing
D) Mere actions
E) Ignoring
E) Ignoring
Name a case that an offer was accepted using mere actions.
Lowe vs Clements
Having received that letter, Mr. Lowe had his company go ahead with the delivery of the crane, lowe accepted the offer by delivering the crane.
Name a case that an offer was accepted with an I agree button:
Rudder v Microsoft
What does Douez vs Facebook argue (terms and conditions)
Legal consent in pressing a button
the default rule (emails)
Acceptance occurs at the time of receipt unless otherwise indicated (Christmas v MacKay)
Postal Rule
Acceptance is at the time of mailing or posting rather than delivery (Adams v Lindsell)
Doctrine of Consideration : hint: think about uncle and nephew case with the RV and honors
the party who seeks to enforce a promise must provide something of value in exchange for the promise.
Consideration
benefit to one party or suffering undertaken by the other
Doctrine of Promissory Estoppel Hint: think of Susan vs Melody when melody relied on susans promise
If the promisor had made a promise not to claim an interest, and the promisee relied on and acted on the promise he cannot break the promise (used as a defense to doctrine of consideration)
Parol Evidence Rule
The rule forbids outside or extrinsic evidence when the document is intended to be the sole source
The entire contract clause
the count will determine the parties’ obligations based only on what is recited in the contract itself.
Conditions
Very important part of contract, a breach of this can allow the innocent party to terminate the contract (Poussard v Spiers)
Warranty
Less importance, a breach does not amount to termination but the innocent party can claim damages. (Bettini v Gye)
Effectiveness of Exemption clause
Whether it is part of the contract , and whether the party is aware it is part of the contract. (Rent-a-car vs Clen)
Contract voidable
an option available to the innocent party where they either choose to keep the contract in force or set aside the contract
Contract void
Where the defect is substantial, the contract has to be declared void the contract considered never to have existed at all.
Vitiating factors
Factors that make a contract void or voidable
Bisset v Wilkinson (sheep on land)
Opinion and he was in no better position than the purchaser to know about the amount of sheep the land could hold.
