Offer & Acceptance

Question 1

What must parties reach for a contract to exist?

Answer 1

An agreement - had a mutual intention to enter into an agreement.

Question 2

When is there an agreement between the parties?

Answer 2

When there’s a “meeting of the minds” (consensus ad idem).

Question 3

Meeting of the Minds

Answer 3

Parties reach an agreement when they have formed a mutual intention to enter into a bargain with each other, and are in agreement of the terms.

Question 4

Steps to Offer & Acceptance

Answer 4

1. Offer
2. Communication of Offer
3. Acceptance of Terms of Offer
4. Communication of Acceptance

Question 5

2 Necessary Elements for Contract Formation

Answer 5

1. Offer
2. Acceptance

Question 6

Offer

Answer 6

• Expression of willingness to contract on specified terms
• Intention is for it to become binding as soon as it is accepted by the person to whom it is addressed

Question 7

Invitation to Treat

Answer 7

• Expression of willingness to do business
• Inviting the other party to make an offer

Question 8

Ratio from Goldthorpe v. Logan?

Answer 8

• Advertisements of bilateral contracts are typically not held to be offers since further bargaining is contemplated
• If you make an unqualified promise, you are bound by it (they are enforceable even if you try your best to deliver)

Question 9

Extravagant Promise

Answer 9

If you’re confident enough to guarantee something, you can’t escape a claim based on this guarantee if it didn’t work.

Question 10

Ratio from R v Ron Engineering?

Answer 10

• Tendering process involves 2 contracts: Contract A and B
• The submission of a bid accepts Contract A and is an irrevocable offer for Contract B
• Bids can only be recovered if they don’t conform with terms/conditions of Contract A

Question 11

Doctrine of Mistake

Answer 11

Deals with circumstances under which a contracting party can avoid legal liability because they entered the contract on the basis of a mistake.

Question 12

Ratio from MJB Enterprises Ltd v Defense Construction?

Answer 12

• A privilege clause is only compatible with accepting compliant bids.
• With a privilege clause, you do not have to accept the lowest bid, but you cannot accept a deficient one; in the absence of a privilege clause, you are most likely to be bound to accept the lowest offer

Question 13

Implied Terms Analysis

Answer 13

Terms may be implied in a contract based on:
1. Custom or usage
2. As the legal incidents of a particular class or kind of contract
3. The presumed intention of the parties

Question 14

The Officious Bystander Test

Answer 14

Look to the intentions of the actual parties to the transaction not the intentions of reasonable parties

Question 15

What cases do Contract A&B apply to?

Answer 15

Specific to tendering processes.

ie: Ron v Engineering & MLB

Question 16

Unilateral Contract

Answer 16

A promise for an act, the acceptance consisting of the performance of the act requested, rather than the promise to perform it

Ex: “If you do X, I promise Y”

Question 17

Bilateral Contract

Answer 17

Contract formed by the exchange of promises in which the promise of one party is consideration supporting the promise of the other

Ex:
A: “I promise to pay you 10 dollars to mow my lawn”
B: “I agree”