Offer & Acceptance - Paper 3

Question 1

What is the definition of a contract?

Answer 1

A legally binding agreement between two or more parties which is enforceable in court

Question 2

What are the two types of contract?

Answer 2

Unilateral and Bilateral

Question 3

What is a unilateral contract?

Answer 3

An agreement to pay in exchange for performance, if the potential performer chooses to act

Question 4

What is a bilateral contract?

Answer 4

A contract which requires both parties to do something as they both have obligations

Question 5

What are the four essential elements needed for a contract?

Answer 5

1) Offer
2) Acceptance
3) Consideration
4) Intention to Create Legal Relations

Question 6

What is the definition of an Offer?

Answer 6

It is a statement of the terms upon which the person making the offer is willing to enter the contract, the terms by which you are prepared to be bound

Question 7

What is the difference between an offeror and offeree?

Answer 7

An offeror is the person who makes the offer
An offeree is the person to whom the offer is made

Question 8

What is the ruling from Gibson v Manchester City Council?

Answer 8

An offer must be fully communicated and certain

Question 9

Which case held that a request for information and a reply to that request is not an offer?

Answer 9

Harvey v Facey

Question 10

What is an Invitation to Treat (ITT)?

Answer 10

It is not an offer, it is simply an indication of a willingness to start negotiations, you are inviting the other person to make you the offer to accept or reject

Question 11

What are the three types of ITT?

Answer 11

1) Items on display in a shop
2) Auctions
3) Adverts (in newspapers/online)

Question 12

What was the decision in Fisher v Bell?

Answer 12

Items on display in a shop are not an offer but an ITT

Question 13

What was the ruling from BCA v Wright?

Answer 13

An auctioneer makes an ITT and the bidders make offers

Question 14

Which case established that adverts are an ITT and not an offer?

Answer 14

Partridge v Crittenden

Question 15

Adverts will be an ITT, unless?

Answer 15

1) The wording of the advert makes it clear that it was intended to be an offer
2) An advert in a unilateral contract can be an offer
3) Adverts to a specific group of people is an offer

Question 16

What are the five ways an offer can end?

Answer 16

1) Revocation
2) Rejection
3) Counter Offer
4) Lapse of Time
5) Death

Question 17

What was the ruling from Dickinson v Dodds?

Answer 17

An offer can be withdrawn any time before acceptance, but this must be communicated to the offeree, even by a third party

Question 18

Which case held there must be a clear rejection that is communicated to the offeree for an offer to end?

Answer 18

Stevenson v McLean

Question 19

What was the decision in Hyde v Wrench?

Answer 19

A counter offer acts as a rejection of the original offer and creates a new offer to be accepted or rejected

Question 20

Which case established that an offer will end after a lapse of time?

Answer 20

Ramsgate Victoria Hotel v Montefiore

Question 21

What happens if the offeror dies?

Answer 21

Acceptance can still take place until the offeree learns of the death. If the offeree dies, then the offer dies

Question 22

What is the definition of Acceptance?

Answer 22

An agreement to all the terms of the offer, and is valid as soon as it is communicated

Question 23

What was the ruling in Felthouse v Bindley?

Answer 23

Acceptance can be in any form except silence

Question 24

Which case established the postal rule?

Answer 24

Adams v Lindsell

Question 25

What is the postal rule?

Answer 25

Acceptance takes effect at the moment of posting

Question 26

What was the decision in Entores v Miles Far East?

Answer 26

If the communication arrives out of office hours, it will be communicated at the start of the next working day