Offer and Acceptance

Question 1

3 elements of a contract

Answer 1

Agreement (offer & acceptance)
Intention to create legal relations
Consideration

Question 2

Presumption that there is an intention to create legal relations in commercial agreements

Answer 2

Edwards v Skyways

Question 3

Presumption that non-commercial agreements were not intended to create legal relations

Answer 3

Balfour v Balfour

Question 4

Definition of ‘offer’ by Treitel

Answer 4

an expression of willingness;
to contract; 
on certain terms;
with the intention; 
that it shall become binding; 
as soon as it is accepted

Question 5

Self-service display in shop is an invitation to treat

Answer 5

Pharmaceutical Society of GB v Boots

Question 6

Goods on display are an invitation to treat

Answer 6

Fisher v Bell

Question 7

Tenders are an invitation to treat, unless unilateral contract
(depends on wording of invitation)

Answer 7

Spencer v Harding

Harvela Investments

Question 8

Advertisments are an invitation to treat; unless
offering reward; or
unilateral contract

Answer 8

Patridge v Crittenden;
Williams v Carwarding’
Carlill v Carbolic

Question 9

Auctions with reserve price

Answer 9

Contract between seller and bidder once auctioneer completes sale (fall of hammer)
s.57 Sale of Goods Act 1979

Question 10

Auctions without reserve price

Answer 10

Unilateral contract between auctioneer and bidder that auctioneer will accept highest bid.
Barry v Davies

Question 11

Definition of Acceptance

Answer 11

‘an unqualified assent to the terms of an offer’

Question 12

Acceptance must be communicated by offeree

Answer 12

Entores

Question 13

Acceptance can be communicated by authorised agent

Answer 13

Powell v Lee

Question 14

Acceptance need not be communicated if there is a unilateral contract

Answer 14

Carlill v Carbolic

Question 15

Silence cannot constitute acceptance; unless

Offer binds themselves to contract by silence

Answer 15

Felthouse v Bindley;

Re Selectmove Ltd

Question 16

Counter offer is implied rejection

Answer 16

Hyde v Wrench

Question 17

Questions about an offer are not deemed as rejecting it, may be acceptance

Answer 17

Stevenson Jacques

Question 18

Battle of the forms - ‘last shot wins’

Answer 18

Brogden v Metropolitan Railway Co;

Butler Machine v Ex-Cell-O

Question 19

Postal Rule Exemptions

Answer 19

Adams v Lindsell

Question 20

A letter of acceptance will become binding when posted if:

Answer 20

• reasonable to use post as method of communication
• properly posted
• offeror did not exclude postal rule impliedly/expressly (Holwell v Hughes)

Question 21

If conditions for postal rule exemption are satisfied, the letter need not actually arrive to be valid

Answer 21

Household Fire and Carriage Accident Insurance v Grant

Question 22

General rule - An offer can be revoked at any time before acceptance

Answer 22

Routledge v Grant

Question 23

Exception to revocation rule

Offeree has given consideration to offerer to keep offer open

Answer 23

Mountford v Scott

Question 24

Exception to revocation rule

If unilateral contract and act of acceptance has begun

Answer 24

Errington v Errington & Woods

Question 25

Revocation must be communicated by offeror

Answer 25

Byrne v Van Tienhoven

Question 26

Revocation can be communicated by reliable third party

Answer 26

Dickinson v Dodds

Question 27

If revocation received but not read, and could be reasonably assumed that staff would be at work, it will be deemed to be communicated

Answer 27

The Brimnes

Question 28

If offer made to public, revocation can be made through same channel as offer, provided it has same prominence

Answer 28

Shuey v United States (US Law)

Question 29

An offer will lapse if:

Answer 29

There is an express condition; or
After a reasonable time period.
(Will depend on facts)