Offer and acceptance

Question 1

What are the requirements of a binding contract?

Answer 1

Offer, acceptance, consideration and intention to create legal relations

Question 2

Gibson v Manchester City Council [1979] facts and relevance to offer and acceptance?

Answer 2

City Treasurer wrote to a tenant saying that the council ‘may be prepared to sell the house to you at the purchase price of £2,725, less 20 per cent = £2,180 (freehold)’. went on: ‘If you would like to make a formal application to buy your council house please complete the form and return it to me as soon as possible’. The tenant completed and returned the form. The Council changed its policy on the sale of council houses, and, accordingly, the tenant was advised that the Council was unable to proceed with his application. The tenant brought his action claiming that the Council’s letter was an offer which he had accepted by returning the application form. No binding contract because there was never an offer made by the Council. The letter was not sufficiently clear and certain.

Question 3

What are the requirements of a valid offer?

Answer 3

Offer must be clear, certain and show an intention to be bound

Question 4

What case showed a clear intention to be bound, in which the words “if you will sign the agreement and return it to me I WILL send you the agreement signed on behalf of the corporation in exchange” where used?

Answer 4

Storer V Manchester City Council (1974)

Question 5

What is a bilateral contract?

Answer 5

A contract where both parties assume obligations to each other.