Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Contract > Unit 1.1- Agreement and Intention > Flashcards

Unit 1.1- Agreement and Intention Flashcards

1
Q

Define Offer

A

Statement of willingness to be bound on certain terms which is capable of being accepted without further negotiation (Trietel)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define Acceptance

A

An unqualified expression of assent to all the terms of an offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define Request for information

A

A request for further detail of an offer, it does not impliedly reject the offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define Counter Offer

A

A suggestion of new terms to be used in the contract, acts as a rejection of the offer made by the offeror

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Where can the general rule for Tenders be found? What is the rule?

A

Spencer v Harding

If someone invites a contractor to make a tender, they are free to choose which one they want

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does Harvela Investments v Royal Trust of Canada demonstrate?

A

The exception to the general rule of tenders

  • An invitation to two firms to submit sealed bids for shares with a commitment to accept the highest bid
  • One firm offered $2,175,000
  • The other offered $2,100,000 or $101,000 in excess of any other offer
  • The seller accepted the ‘referential bid’ - $2,276,000
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Outline the facts of Blackpool Fylde Aero Club v Blackpool BC

A
  • Council invited BFAC and 6 others to tender for a concession to fly out of airport
  • Tenders had to be received at town hall by 12pm 17/03
  • BFAC put its tender in town hall letter box at 11.00 17/03
  • Letter box not cleared as it should have been at noon.
  • BFAC’s tender was registered late and not considered.
  • BFAC held current concession and had won it on 3 previous occasions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What was the outcome of the Blackpool BC case?

A

The council were found in breach, so BFAC got damages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does Smith v Hughes say?

A

Take an objective approach to deciding whether there was an agreement between parties

Assessment of parties’ intention in making an offer is objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the position on shop window displays and invitations to treat?

A

Boots Cash Chemists case- goods on display are regarded as ITT

Fisher v Bell- display of a flick knife was an ITT, rather than the charged ‘offering sale of a flick knife’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the position on advertisements and invitations to treat?

A

Partridge v Critternden- generally an ITT

Williams v Carwardine- advertisement of a reward traditionally treated as an offer as there is an intention to be bound as soon as the information is given

Carbolic Smoke Ball Co- advertisements can constitute an offer ‘to the world’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define unilateral offer

A

Promise in return for an act
The commitment is one-sided

E.g. the offer of a reward for information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define bilateral offer

A

One party makes a promise in return for a promise from the other party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Is an Auctioneer’s request for bids an offer?

A

No, it is an ITT

The bid is the offer which an auctioneer can accept or reject

The sale is complete on the fall of a hammer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What happened in Barry v Davies?

A

An auctioneer tried to refuse a bid that he considered too low even though there was no reserve price

If advertised without reserve, auctioneer is effectively promising to sell to the highest bidder (unilateral)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define a request for a tender

A

Invitation to treat

The actual tender is then the offer, which may be accepted or rejected by teh business that has invited them to make an offer for outsourcing, for example

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How can an offer be terminated?

A

Revocation

Rejection

Lapse of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which case tells us that promises are not binding if they are gratuitous?

A

Routledge v Grant

19
Q

What happened in Mountford v Scott

A
  • Claimant paid £1 for the option of buying defendant’s house for £10,000
  • D purported to revoke the offer
  • Court held offer was irrevocable as the claimant had paid for the option
20
Q

How would one revoke an offer made to the public?

A

Via the same method it was made

Carbolic Smoke Ball- made in a newspaper ad, therefore could be notified of revocation through a newspaper ad

NB: Shuey case confirms this, but not a binding decision as not made in a UK court

21
Q

Byrne Co v Van Tienhoven Co

A

Notice of withdrawal of the offer must be given and must be communicated to be effective

22
Q

What case tells us that notice of revocation that arrives during normal office hours is likely to be effective at that point, even if not read till the next day?

A

The Brimmes

23
Q

What does The Brimmes case tell us?

A

If notice of revocation arrive during normal office hours, it is likely to be effective at that point even if not read until the next day

24
Q

Dickinson v Dodds tells us that…

A

…revocation may be communicated by a reliable third party

Objective perception of being reliable

25
Q

What is the problem with revocation of unilateral offers?

A

It can be revoked before acceptance, but when does acceptance take place?

  • when the promisee starts to perform?
  • When the act is completed?
26
Q

A case involving the revocation of a unilateral offer?

Give details

A

Errington v Erringon and Woods

  • Father bought house in his own name and said son and daughter in law could live in it
  • If they were to pay the mortgage in instalments he would transfer it to them
  • When father died, widow sought possession
  • Held that father’s promise was irrevocable as couple had started paying instalments and continued to do so
27
Q

Hyde v Wrench

A

Implied rejection of an offer of £1000 through the offeree offering to pay £950 instead

28
Q

Stevenson Jacques and Co v McLean

A

Authority for the principal that a request for information does not implied reject an offer

29
Q

What is ‘battle of the forms’?

A

Brogden v Metropolitan Railway co.

Two businesses who are in negotiation purport to contraction their own standard terms

When a problem arises, the question then is whether there is a contract at all

30
Q

Butler Machine Tool Co Ltd v Ex-Cell-O Corporation (England) Ltd

A

Case that did little to resolve battle of the forms
Some believe that ‘last shot wins’, and explains why businesses persist in putting forward their own terms

-C offered to sell machinery to D
- Delivery was to be in 10months time at £75,000
- C sent offer in standard form
-C’s terms stated that they would prevail over any terms on D’s standard form
C’s terms had a price variation clause
-D sent back acceptance, but said that price must be fixed, C signed
-C delivered goods and tried to invoke price variation, D refused as per the signed terms
-Court found contract on D’s terms

31
Q

Certainty of terms authority

A

If terms are too vague they cannot form a contract (Scammell v Ouston)

32
Q

Authority for ‘acceptance must be communicated’?

A

Entores Ltd v Miles Far East Corp

33
Q

What does Felthouse v Bindley tell us?

A

Silence cannot be stipulated as acceptance

34
Q

Re Selectmove

A

Courts saw no reason why an offeree should not bind himself by silence (distinguish from Felthouse where offeror tried to enforce this on the offeree)

35
Q

What is the postal rule?

A

A letter of acceptance which is posted is complete on posting and the contract will be formed at that point

Subject to 4 conditions:

1) Only applies to acceptances
2) Only applies where it was reasonable for the acceptance to be sent by post
3) Letter must be properly stamped, addressed and posted
4) Rule can always be excluded by the offeror either expressly or impliedly

36
Q

What case gives the postal rule?

A

Adams v Lindsell

37
Q

Why is intention to create legal relations important?

A

Parties need to have this intention in order for the courts to treat an agreement as binding

38
Q

Domestic agreements and intention to create legal relations?

A

Balfour v Balfour

There is a rebuttable presumption that there is no intention to create legal relations between spouses

39
Q

Commercial agreements and intention to create legal relations?

A

Edwards v Skyways

Rebuttable presumption that the parties intended the agreement to be legally binding

40
Q

Define invitation to treat

A

Inviting negotiation

The buyer cannot agree or reject anything as nothing has been made

41
Q

Case law regarding intention to create legal relations in commercial agreements

A

Edwards v Skyways- presumption that there was intention to create legal relations

Rose and Frank Co v Crompton Bros- rebuttable, if there is specific wording to that effect

42
Q

What does Rose and Frank Co v Crompton Bros tell us?

A

Presumption of intention to create legal relations in a commercial agreement is rebuttable, if there is specific wording to that effect

43
Q

Case law regarding intention to create legal relations in non-commercial/ family agreements?

A

Balfour v Balfour- presumption that there was no intention to create legal relations

Merritt v Merritt- rebuttable

44
Q

What does Balfour v Balfour tell us?

A

In non-commercial/ family agreements, there is a presumption that there was no intention to create legal relations

Contract (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions