Section A

Question 1

Contract

Answer 1

A contract is an agreement giving rise to obligation

On the part of both persons which are enforced and recognised by law

Question 2

Unilateral

Answer 2

Only one party assumes obligation

Question 3

Bilateral

Answer 3

Two parties and both assume obligation

Question 4

Offer

Answer 4

An expression of willingness to contract on certain terms with the intention it shall become binding

Trietal

Question 5

Payne v cave 1789

Answer 5

Auction

Offer can be withdrawn at any time before the acceptance is complete

Lord Kenyon~> defendant was at liberty to withdraw his bidding any time before the hammer was knocked down

Question 6

Invitation to treat

Answer 6

Based on intention of parties

If a limited supply it’s often an invitation to treat

Question 7

Harvey v Facey (Australian)

Answer 7

Faceys reply was a response to a request for information not an offer

Question 8

Gibson v Manchester city council

Answer 8

‘May be prepared to sell the house to you’

Not an offer

Question 9

Storer v Manchester city council

Answer 9

‘I will send you the agreement signed on behalf of the [council] in exchange’

Intention here was to sell so it’s an offer not invitation to treat

Question 10

Advertisement

Answer 10

For an advertisement to constitute and offer it must be clear and definite

Example is carlill v carbolic

Question 11

Partridge v Crittenden 1968

Answer 11

Wild birds avertised for sale contrary to Protection of Birds Act 1954

Advert deemed an invitation to treat not an offer

Question 12

Fisher v Bell 1960

Answer 12

Knife for sale

ITT not an offer

Question 13

Pharmaceuticals society of Great Britain v boots cash chemists

Answer 13

On display on a shelf is an invitation to treat

Sale took place on the cash desk

Question 14

Counter offer

Answer 14

A counter offer terminates original offer

Question 15

Hyde v wrench

Answer 15

Farm for sale for £1000

Counter offer for £950

Refused counter and when tried to accept previous offer he was told it wasn’t available

Terminated by counter offer

Question 16

Stevenson v Mclean (1880)

Answer 16

Sent a telegram asking about delivery and longest time

Not a counter offer just an enquiry

Therefore still a binding contract

Question 17

2 offers

Pickfords v Celestica(2003)

Answer 17

Two quotes sent seconds with more detail than the first
13th sept- 100k price per load
27th- £98,760 fixed price
15th fax stating not to exceed 100k from defendants titled confirmation

CoA said second offer withdrew the first

Fax was intended to accept the first offer by since it had been revoked and work carried out the conduct was acceptance of counter offer

Second offer may automatically be revoked it offeror ‘clearly indicated and intention…to withdraw the first offer’

Question 18

Battle of the forms

Answer 18

Last shot wins the battle

Each new form is treated as a counter offer

When one party performs obligation conduct is seen as acceptance

Question 19

British road services v Arthur v crutches and co ltd (1968)

Answer 19

‘Received under [our] conditions’

Counter offer from crutchley accepted when goods were handed over

Lord Denning suggested the courts have a less rigid approach and decide whether parties thought they had a binding contract

Question 20

Butler v machine tool ltd v ex-cell-o Corp (1979)

Answer 20

Sellers quote had price variation clause

Responded with order stating ‘accept order on therms and conditions thereon’ ~> no price variation clause

Sellers returned acknowledgement slip stating order accepted in accordance with earlier quotation

CoA took this to be type of machine tool not the terms listed on back of seller document so it was buyers terms used

Question 21

GHSP Incorporated v AB electronic ltd (2010)

Answer 21

Not on either parties terms as neither willing to contract on each other’s terms

Unwritten contract containing implied terms of sales of goods act 1979~> satisfactory quality

Surprising contract consisted ourely of this but fits with Lord den inns proposed approach to this type of case

Question 22

The postal rule

Answer 22

Acceptance takes effect when posted not communicated

Question 23

Adams v Lindsell 1818

Answer 23

Postal rule laid down

Claimants accepted 5th sept by post

Defendants sold wool to third party on 8th sept

Therefore defendants were bound from evening of 5th September

Question 24

Cowan v O’connor (1888)

Answer 24

Acceptance came into effect when telegram was placed with post office

Question 25

Henthorn v Fraser 1892

Answer 25

Postal rule only applies if it is reasonable to accept this way

Offer handed over in person but acceptance by post

Deemed acceptable to use post as they lived in two different towns Liverpool and Birkenhead

If an offer made by instant communication acceptance by post isn’t usually reasonable

Question 26

Holwell securities v Hughes (1974)

Answer 26

‘Notice in writing’

Postal acceptance never arrived

Held notice meant communication so not appropriate to use postal rule here

Question 27

Smith v Hughes

Answer 27

If a passerby would deem there was a contract there is