Offer & Acceptance - Paper 3 Flashcards

1
Q

What is the definition of a contract?

A

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

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2
Q

What are the two types of contract?

A

Unilateral and Bilateral

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3
Q

What is a unilateral contract?

A

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

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4
Q

What is a bilateral contract?

A

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

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5
Q

What are the four essential elements needed for a contract?

A

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

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6
Q

What is the definition of an Offer?

A

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

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7
Q

What is the difference between an offeror and offeree?

A

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

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8
Q

What is the ruling from Gibson v Manchester City Council?

A

An offer must be fully communicated and certain

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9
Q

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

A

Harvey v Facey

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10
Q

What is an Invitation to Treat (ITT)?

A

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

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11
Q

What are the three types of ITT?

A

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

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12
Q

What was the decision in Fisher v Bell?

A

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

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13
Q

What was the ruling from BCA v Wright?

A

An auctioneer makes an ITT and the bidders make offers

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14
Q

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

A

Partridge v Crittenden

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15
Q

Adverts will be an ITT, unless?

A

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

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16
Q

What are the five ways an offer can end?

A

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

17
Q

What was the ruling from Dickinson v Dodds?

A

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

18
Q

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

A

Stevenson v McLean

19
Q

What was the decision in Hyde v Wrench?

A

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

20
Q

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

A

Ramsgate Victoria Hotel v Montefiore

21
Q

What happens if the offeror dies?

A

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

22
Q

What is the definition of Acceptance?

A

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

23
Q

What was the ruling in Felthouse v Bindley?

A

Acceptance can be in any form except silence

24
Q

Which case established the postal rule?

A

Adams v Lindsell

25
Q

What is the postal rule?

A

Acceptance takes effect at the moment of posting

26
Q

What was the decision in Entores v Miles Far East?

A

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