Notes

Question 1

What is the definition of an ITT?

Answer 1

It is an invitation for offers.

Question 2

Are goods on display ITT or offer?

Answer 2

Generally ITT (Fisher v Bell; Pharmaceutical Society v Boots).

Question 3

Are advertisements ITT or offers?

Answer 3

Generally ITT (Partridge v Crittenden) but can sometimes amount to an offer (Carlill v Carbolic Smoke Ball).

Question 4

Are contracts by tender an ITT or an offer?

Answer 4

Generally ITT (Spencer v Harding) unless it specifies it will accept the highest/lowest bid, making it a unilateral offer which is accepted on performance of the condition (Harvela). The unilateral offer must be specific and you must look at the circumstances as a whole (Blackpool Aero Club).

Question 5

Are auctions ITT or offers?

Answer 5

When they have a reserve it is an ITT and each bid is an offer (Payne v Cave). When there is no reserve it becomes a unilateral offer, acceptance upon placing the highest bid (Heathcote Ball v Barry; Harvela).

Question 6

How can an offer be terminated?

Answer 6

Death of one of the parties (if it involves their personal services)
Lapse of time (RamsgateVictoria Hotel - lapse after a reasonable time, this depends on the offer and subject matter of the contract)
Revocation (must be prior to acceptance: Routledge v Grant; and must be communicated to the offeree: Byrne v Van Tienhoven; unilateral offer cannot be revoked once performance has started: Errington v Errington)
Counter offer (Hyde v Wrench)

Question 7

What are the rules/definition of acceptance?

Answer 7

It must be communicated to the offeror, the terms must mirror the offer and the agreement must be certain.

Question 8

What is the general rule of acceptance?

Answer 8

The offeror must receive acceptance for it to be effective (Entores) silence will not amount to acceptance (Felthouse v Bindley) unless they had a previous course of dealings (Brogden v a Metropolitan Railways).

Question 9

Can conduct amount to acceptance?

Answer 9

Yes (Brogden v Metropolitan Railway).

Question 10

What is the postal rule?

Answer 10

Acceptance takes place on posting if it is correctly addressed and stamped (Adams v Lindsell) however you can specifically exclude it (Holwell Securities v Hughes).

Question 11

What is the definition of an offer?

Answer 11

An expression to contract on certain terms with an intention to be bound (Harvey v Facey).

Question 12

In order to be capable of being an offer what must it be?

Answer 12

Specific, known to the offeree and negotiations must have finished (Gibson v Manchester City Council).

Question 13

What if you do not accept a mirror image of the offer?

Answer 13

It will be a counter offer which cancels out the original offer (Hyde v Wrench).

Question 14

Is a request for further information a counter offer?

Answer 14

No (Stevenson v McLean).

Question 15

When will an accepted tender not result in a contract?

Answer 15

If orders can be placed as and when needed, the contract will not be formed until the order is placed (Percival Ltd).

Question 16

What is the battle of the forms?

Answer 16

Where one company wants to deal on his own terms and vice versa. The terms in whom the contract is based is he who strikes the last blow (Butler Machine Tool).

Question 17

How does acceptance via electronic communication work?

Answer 17

It must be communicated to the offeror (Entores; Brinkibon) and be received within normal working hours (Tenax).

Question 18

How are unilateral contracts accepted?

Answer 18

By performing the act (Carlill v Carbolic Smokeball) but it must be full performance (Luxor) and once it has started it is too late to revoke (Errington v Errington)

Question 19

How can you revoke a unilateral offer?

Answer 19

It must be done in the same way the offer was made (Shuey).

Question 20

What if an offer has a specified method of acceptance and you do not follow it?

Answer 20

As long as it does not say this is the only way to accept and is received no later than the specified method would then it should be valid (Tinn v Hoffman).

Question 21

When is postal acceptance complete?

Answer 21

On posting (Henthorn v Fraser) even if it never arrives provided it is correctly addressed (Adams v Lindsell) but it is possible to opt of out it in an offer (Holwell Securities).

Question 22

When can an offer be withdrawn?

Answer 22

Any time prior to acceptance (Payne v Cave) but it must be communicated to the offeree (Stevenson v McLean); the postal rule does not apply for revocation (Byrne v Tienhoven; Henthorn v Fraser).

Question 23

What if an offer is to remain open for a set period of time and you want to revoke it?

Answer 23

If it is unsupported by consideration it can be withdrawn (Dickinson v Dodds).