Points of Law

Question 1

There has to be a clear offer or it cannot be accepted.

Answer 1

Gibson v Manchester City Council (1979)

Question 2

Goods on display in store are an invitation to treat. The customer makes the offer to the shop who can accept or reject it.

Answer 2

Pharmaceutical Society of Great Britain (PSGB) v Boots (1953)

Question 3

Goods on display in a shop window are an invitation to treat.

(Same usually applies for websites)

Answer 3

Fisher v Bell (1961)

Question 4

Advertisements are an invitation to treat.

Answer 4

Partridge v Crittenden (1968)

Question 5

Advertisements, when made in clear and specific terms, can be treated as offers.

Answer 5

Carlill v Carbolic Smoke Ball Co. (1893)

Question 6

Tenders are I2T, unless specific performance is indicated (eg. Highest bid wins)

Answer 6

Spencer v Harding (1870)

Question 7

You cannot have referential tenders.

(Cannot bid £1 higher that the next highest offer)

Answer 7

Harvela Investments v Royal Trust of Canada. (1985)

Question 8

Requests for information are not offers.

Answer 8

Harvey v Facey (1893)

Question 9

The offer must be communicated before it can be accepted.

Answer 9

Bloom v American Swift Watch Co (1915)

Question 10

You must be responding to the offer to be able to accept it.

Answer 10

R v Clarke (1927)

Question 11

You can accept an offer by action.

Answer 11

Brogden v Metropolitan Railway Company (1877)

Question 12

Where a time limit is specified in the offer, acceptance must take place within that limit. Where no time limit is specified the offer will lapse after a ‘reasonable time’.

Answer 12

Ramsgate v Montefiore (1866)

Question 13

A counter-offer acts as a rejection of the original offer.

Answer 13

Hyde v Wrench (1840)

Question 14

Inquiries seeking clarification or information about the terms of the original offer may not terminate the offer itself.

Answer 14

Stevenson v McLean (1880)

Question 15

Revocation of an offer is only effective when it has been received.

Answer 15

Byrne v Van Tienhoven (1880)

Question 16

Although revocation must be communicated it can still be effective if it arrives within office hours and is simply not read.

Answer 16

The Brimnes (1974)

Question 17

An offer can be withdrawn at any time before acceptance and that withdrawal can be communicated by a third party.

Answer 17

Dickinson v Dodds (1876)

Question 18

When the offeree has started performance of the act, they are to be given a reasonable period of time to complete the act.

Answer 18

Errington v Errington (1952)

Question 19

Offers to the world must be revoked in the same method and with the same notoriety as the original offer.

Answer 19

Shuey v US (1875)

Question 20

Silence or the offerees mere intention to accept is not sufficient for contract formation; the acceptance must be made known to the offeror.

Answer 20

Felthouse v Bindley (1862)

Question 21

Where an offer states that it can only be accepted in a certain way, (i.e. fax, post, or at a particular place etc.) the acceptance will only be valid if it is made that way.

Answer 21

Yates Building v Pulleyn (1975)

Question 22

Parties can exclude the postal rule in their contract if they wish to do so.

Answer 22

Howell v Hughes (1974)

Question 23

Acceptance through instantaneous communication (like telex or email), the acceptance is effective when it is received and read by the offeror during their normal business hours.

Answer 23

Brinkibon Ltd v Stahag Stahl (1983)

Question 24

The last set of terms provided before contract formation will be considered the terms of the contract.

Answer 24

Butler Machine Tools v Ex Cell O Corp (1979)

Question 25

A promise to preform an existing contractual obligation can be enforceable if the promise provides a practical benefit to the promisor.

Answer 25

Williams ve Roffey (1990)

Question 26

Performance of an existing contractual duty, without additional value or consideration, cannot be the basis for creating a new contract.

Answer 26

Stilk v Myrick (1809)

Question 27

If there is a significant extra performance then the original contract is discharged and a new contract formed with valid consideration.

Answer 27

Hartley v Ponsonby (1857)