Revision Book

Question 1

Who is the offeror?

Answer 1

The person making the offer.

Question 2

Who is the offeree?

Answer 2

The person to whom the offer has been made.

Question 3

What is an ITT?

Answer 3

A statement made by one party inviting offers which that party can either accept or reject.

Question 4

Give some examples of an ITT?

Answer 4

Advertisements
Shop window displays
Auctions
Invitations to tender

Question 5

Why are advertisements generally considered to be ITT?

Answer 5

Partridge v Crittenden said it was an invitation to receive offers as the starting point for negotiations.

Question 6

When can an advertisement be seen as an offer?

Answer 6

If it is a unilateral offer.

Question 7

What is a unilateral contract?

Answer 7

A promise in return for an act (Carlill v Carbolic Smoke Ball Company) as long as there is consideration and an intention to create legal relations.

Question 8

How do we know goods on display are an ITT?

Answer 8

Pharmaceutical Society v Boots - goods on a shelf are an ITT, presenting them at the till is an offer to buy the goods.

Question 9

How do we know good advertised in shop windows are ITT?

Answer 9

Fisher v Bell - display of flick knife was an ITT not an offer to sell.

Question 10

When are auctions ITT and offers to sell?

Answer 10

British Car Auctions said it was an ITT when there was a reserve price to be met, bids are offered which are accepted with the fall of the hammer.
Healthcote Ball said when there is no reserve it is an offer for sale which is accepted by submission of the highest bid.

Question 11

When accepting invitations to tender, must all tenders be considered?

Answer 11

Yes but they do not have to be accepted (Blackpool and Flyde Aero Club).

Question 12

When is an invitation to tender an offer and an ITT?

Answer 12

Spencer v Harding said it’s an ITT unless the person making the offer states they will accept the highest offer to buy goods or lowest offer to supply goods. This could be seen as an offer (Harvela Investments).

Question 13

What is a statement of price and is it an offer?

Answer 13

It is the minimum price a party is willing to sell and is an ITT (Harvey v Facey; Gibson) unless it is specific enough to be capable of being an offer (Storer v Manchester City Council - buying council house returning agreement of sale letter).

Question 14

How can an offer be terminated?

Answer 14

Revocation
Lapse of time
Death of one of the parties

Question 15

If a party is wanting an offer to be revoked what must they do?

Answer 15

It must be before acceptance has occurred (Routledge) And it must be communicated it to the offeree (Byrne v Van Tienhoven).

Question 16

Is a third party capable of revoking an offer?

Answer 16

Yes provided they are a reliable source of information and someone whom both parties can rely (Dickinson v Dodds).

Question 17

How do you revoke a unilateral offer?

Answer 17

The offeror must take reasonable steps to notify the persons likely to accept (Shuey - an American case therefore only carries persuasive authority). It cannot be revoked if performance has already started (Daulia Ltd).

Question 18

When is a unilateral offer not binding?

Answer 18

If the act is left incomplete and unperformed (Errington v Errington) it requires full performance.

Question 19

What is an acceptable length of time for an offer to lapse?

Answer 19

Ramsgate Victoria Hotel said it depends on the subject matter. Where the value can fluctuate rapidly or the subject matter is perishable, the offer would terminate after a short time.

Question 20

What happens to offers when one the parties die?

Answer 20

If the offeror dies the personal representatives may still be liable if the offer does not involve personal services of the deceased and the offeree is unaware if the death (Bradbury v Morgan). If the offeree dies the offer lapses.

Question 21

What is the definition of acceptance?

Answer 21

It is a final and unqualified expression of assent to the terms of an offer (Treitel).

Question 22

What is the mirror image rule?

Answer 22

A valid acceptance must exactly match the terms of the offer.

Question 23

What is a counter offer?

Answer 23

If there is an introduction of new terms of an attempt to vary the proposed offer, this destroys the original offer and becomes a counter offer (Hyde v Wrench - farm for £1000, £950 counter).

Question 24

What is a request for information seen as?

Answer 24

A mere enquiry (asking for more detail) not a counter offer (Stevenson v McLean) provided it does not attempt to vary the terms of the offer.

Question 25

What is the battle of the forms?

Answer 25

Where the parties try to rely on by heir standard terms.

Question 26

In a battle of the forms situation, whose terms will the contract be on?

Answer 26

All communication is seen as a counter offer, if a contract is formed it is on the final counter offers terms (Zambia Steel).

Question 27

Whose terms are relied upon in this scenario:
British Road Services case - delivery driver handed note which incorporated Cs conditions of carriage. This was stamped by D’s as received under D’s conditions.

Answer 27

Received under Ds conditions was a counter offer which was accepted by handing over the goods. Contract is formed with Ds conditions.

Question 28

What did Denning say in the case of Butler Machine Tool Co?

Answer 28

The battle of the forms is won by the man who fires the last shot if they are not objected to by the other party.

Question 29

What did Denning say about communication of acceptance?

Answer 29

In Entores he said that if he shouts acceptance over a river from the offeror and there is a flying plane overhead the offeror cannot hear, I must wait for the plane to pass.

Question 30

Can silence amount to acceptance?

Answer 30

No (Felthouse v Bindley - I shall consider the horse mine if I do not hear from you, no contract).

Question 31

Does acceptance have to be communicated for a unilateral contract?

Answer 31

No, it is accepted by performing the act or forbearance that is stipulated (Four Millbank Nominees; Carlill).

Question 32

What is acceptance by conduct?

Answer 32

Where acceptance is inferred from conduct without being expressly communicated (Brogden v Metropolitan Railway - new terms sent by B, M never communicated they accepted but later placed orders on the new terms, 2 years later B said there was no contract as they never communicated acceptance, there was acceptance by Ms conduct).

Question 33

If the of error specifies a method for acceptance, what happens if that is not followed?

Answer 33

There will be no acceptance unless the method used is the same in terms of speed of delivery or quicker, it cannot be later than the method specified (Tinn v Hoffman).

Question 34

What if there is no method for acceptance specified?

Answer 34

Then acceptance must be via the same method the offer was made (Cole).

Question 35

What is the exception to the general rule that acceptance must be communicated to the offeror?

Answer 35

Acceptance by post (Adams v Lindsell) acceptance is at the time the letter is posted.

Question 36

Does the postal rule apply to revocation of an offer?

Answer 36

No, that must be communicated, it only applies to acceptance.

Question 37

What are the rules that must be met in order for the postal rule to apply?

Answer 37

Postal acceptance must have been in the contemplation of the parties, normal or reasonable (Henthorn v Fraser)
It must be properly addressed and stamped (Ex Parte Jones)
It must be posted, not handed to a postman to deliver
Postal rule must not have been expressly excluded in the offer

Question 38

When there is a question on the postal rule, what must you consider in your answer?

Answer 38

The rules in order for the postal rule to apply i.e. Must be in contemplation of the parties etc.

Question 39

Is acceptance valid if it is received after the notice of revocation is sent?

Answer 39

Yes (Henthorn v Fraser).

Question 40

Is there acceptance if the letter of acceptance is never received by the offeror?

Answer 40

Yes (Household Fire Insurance Co).

Question 41

When using instantaneous forms of communication for acceptance, when does it occur?

Answer 41

They are treated as being accepted when and where is it received (Entores).

Question 42

When is acceptance communicated if it is done by telex outside of business hours?

Answer 42

Brinkibon says it is only effective when the office reopens.

Question 43

Is acceptance communicated during office hours to machines?

Answer 43

Yes as the person sending the message has done all that they could reasonably be expected to do to bring communication to their attention (Tenax Steamship).

Question 44

Is there an intention to create legal relations in social and domestic situations?

Answer 44

No (Balfour v Balfour - husband paid wife £30 month while he was away then they separated, no legal relations) but this can be rebutted (Merritt v Merritt - already separated when the agreement was made).

Question 45

Are commercial agreements intended to be legally binding?

Answer 45

It is presumed they are but they can be rebutted by express provision in the contract (Rose & Frank Co).

Question 46

What is an offer?

Answer 46

An expression of a willingness to be legally bound, by his words or conduct, by the parties to whom it is addressed.