offer and acceptance

Question 1

how is agreement determined

Answer 1

objective test - what would a reasonable person say was the intention of the parties

Question 2

Define a bilateral contract

Answer 2

each party assumes an obligation to the other party

Question 3

Define a unilateral contract

Answer 3

Performance of an act constitutes acceptance, there is no mutual promise

Question 4

What must an offer be to be valid

Answer 4

clear, certain and show intention to be bound

Question 5

Invitiation to treat definition

Answer 5

the first step in negotiations which may or may not lead to a firm offer being made by one of the parties

Question 6

invitations to treat x5

Answer 6

1. Ads - Partridge v Crittenden
2. Display of goods for sale - Fisher v Bell
3. Invitations to tender - Spencer v Harding
4. Websties and circulation of a price list
5. Auctions- Payne v Cave

Question 7

Three ways to end an offer

Answer 7

1. rejection or counter-offer
2. Lapse (passage of time, death)
3. Revocation

Question 8

when is revocation of an offer effective

Answer 8

when notice reaches the offeree

Question 9

4 requirements fora cceptance

Answer 9

1. in response to an offer
2. unqualified
3. prescribed mode of acceptance?
4. communicated

Question 10

Postal rule

Answer 10

acceptance takes effect from the moment a letter of acceptance is properly posted, not from the moment it is received

Question 11

when does the postal rule not apply

Answer 11

• if post was never contemplated as a mode of acceptance
• for letters of revocation
• if the letter was incorrectly addressed
• if the postal rule was disapplied (“provided we receive”)

Question 12

when is acceptance deemed communicated for instant methods of communication?

Answer 12

The moment the acceptance is received by the offeror - or whenever business hours start again if communciated outside business hours

Question 13

what happens if acceptance is not communicated via instant communication because of the fault of the offeror

Answer 13

the offeror is prevented from saying that they did not accept.

Question 14

why is certainty required in an agreement

Answer 14

only an agreement which is sufficiently certain can be enforced by the courts

Question 15

is the test for certainty objective or subjective?

Answer 15

it is an objetive test - did the parties consider the terms to be a pre-condition to creating legal relations?

Question 16

will every vague or uncertain conract be void for uncertainty?

Answer 16

No, particularly in abusiness setting. The courts will look for agreement by looking at previous transactions

Question 17

what is the presumption relating to ICLR in a domestic context?

Answer 17

there is a presumption against ICLR

Question 18

what is the presumption relating to ICLR in a commercial context?

Answer 18

ICLR is presumed unless this presumption is explicitly rebutted (e.g subject to contract).