Termination of an Offer Flashcards
What happens if an offeree rejects an offer?
A) The offer is terminated and cannot be accepted later
B) The offer remains open until the deadline expires
C) The offer is automatically modified with new terms
D) The offeree can still accept the offer if the offeror has not revoked it
A) The offer is terminated and cannot be accepted later
Explanation:
Once an offer is rejected, it cannot be revived unless the offeror makes a new offer (Hyde v Wrench 1840).
When does an offer lapse due to time?
A) If the offeree remains silent for too long
B) If the offer is not accepted within the specified or a reasonable time
C) If the offeror changes their mind before acceptance
D) If the offeree makes an inquiry about the offer’s terms
B) If the offer is not accepted within the specified or a reasonable time
Explanation:
If the offeror sets a deadline, the offer expires once the deadline passes. If no time limit is set, the offer lapses after a reasonable time, which depends on the context.
When is revocation of an offer effective?
A) When it is communicated to the offeree
B) When the offeror decides to revoke it
C) When the revocation is posted, regardless of receipt
D) When a third party informs the offeree of the revocation
A) When it is communicated to the offeree
Explanation:
Revocation must be communicated before acceptance to be effective (Byrne v Van Tienhoven 1880). The offer remains valid until the offeree receives notice.
Which of the following is true regarding revocation of a unilateral offer?
A) The offeror can revoke the offer at any time, even after performance has started
B) A unilateral offer cannot be revoked once accepted verbally
C) The offeror may be bound not to revoke the offer once the offeree has started performance
D) The offeree must complete the act before the offeror can revoke
C) The offeror may be bound not to revoke the offer once the offeree has started performance
Explanation:
In unilateral contracts, once performance begins, revocation may be restricted (Errington v Errington & Woods 1952). This prevents the offeree from being unfairly disadvantaged.
Alex offers to sell his laptop to Sam. Before Sam accepts, Alex dies. What happens to the offer?
A) It lapses if Sam was aware of Alex’s death
B) Sam can still accept the offer within a reasonable time
C) Alex’s estate must honor the offer
D) The offer remains open unless a counter-offer is made
A) It lapses if Sam was aware of Alex’s death
Explanation:
An offer lapses upon the offeror’s death if the offeree knows about it (Bradbury v Morgan 1862). If unaware, courts may allow the offer to remain open.
A company offers a £500 reward for returning a lost phone. Jamie starts looking for the phone, but before he finds it, the company revokes the offer. Is this revocation valid?
A) Yes, because all offers can be revoked at any time
B) No, because unilateral offers cannot be revoked once performance has started
C) No, because an advertisement creates a binding contract
D) Yes, because the company did not specify a time limit
D) Yes, because the company did not specify a time limit
Explanation:
Revocation of a unilateral offer is generally not valid once performance has started, but if no time limit was given, the company may argue that reasonable time had passed (Errington v Errington & Woods 1952).
A company sends out a request for tenders on a construction project. One bidder submits the lowest offer, but the company awards the contract to a higher bidder. Is this allowed?
A) No, because the lowest bidder must always win
B) Yes, because the request for tenders is usually an invitation to treat
C) No, because all invitations to tender create contracts
D) Yes, because the request for tenders automatically creates a unilateral contract
B) Yes, because the request for tenders is usually an invitation to treat
Explanation:
A request for tenders is an invitation to treat, meaning the requestor is free to accept or reject any bid (Spencer v Harding 1870).
Tom offers to sell his bike to Jerry. Jerry replies, “Would you take £180 instead?” Tom does not respond. Later, Jerry accepts the original £200 offer. Is there a contract?
A) No, because Jerry’s counter-offer rejected the original offer
B) Yes, because Tom never revoked the offer
C) No, because Tom did not confirm acceptance
D) Yes, because Jerry’s inquiry was not a counter-offer but a request for information
D) Yes, because Jerry’s inquiry was not a counter-offer but a request for information
Explanation:
A request for information (e.g., asking if Tom would accept £180) is not a counter-offer and does not reject the original offer (Stevenson, Jacques & Co. v McLean 1880).
An auctioneer holds a sale “without reserve.” The highest bid is £50, but the auctioneer refuses to sell. Is this legally valid?
A) No, because a “without reserve” auction creates a unilateral offer
B) Yes, because the auctioneer can refuse any bid
C) No, because all auctions must have a minimum bid
D) Yes, because the highest bid was too low
C) No, because all auctions must have a minimum bid
Explanation:
In an auction without reserve, the auctioneer must accept the highest bid, or they breach a unilateral contract (Barry v Davies 2000). The bidder can sue for damages.
A shop advertises a “50% off” sale but later decides to cancel it. A customer tries to buy an item at the discounted price. Can the shop refuse to sell?
A) No, because advertisements are legally binding offers
B) Yes, because advertisements are invitations to treat
C) No, because refusing to sell would be unfair under consumer law
D) Yes, but only if the sale terms were misrepresented
B) Yes, because advertisements are invitations to treat
Explanation:
Advertisements are not offers but invitations to treat (Partridge v Crittenden 1968). The seller is not legally bound to honor the price until an offer is made and accepted.
