Agreement

Question 1

Explain the basic framework of Agreement

Answer 1

1. Invitation to treat
2. Offer
3. Counter-offer
4. Acceptance
5. Revocation

Question 2

How do you determine the existence of agreement?

Answer 2

Determined by ascertaining the objective intentions of the parties based on their words and conduct from the perspective of a ‘reasonable person’

As seen in Rts flexible systems V Molkerei

Question 3

Define Intention to treat

Answer 3

A willingness to receive offers or enter into negotiations. Lacks an intention to be bound or sufficient certainty for an offer.

As seen in Gibson v Manchester City council

Question 4

Define an Offer

Answer 4

An expression of willingness, by words or conduct, of intention to be bound on certain terms.

As seen in Harvey v Facey

Question 5

Define a Counter-Offer

Answer 5

A rejection of the original offer and the creation of a new offer. It extinguishes the original offer. NOT the same as a request for information, which does not reject the original offer.

As seen in Hyde v Wrench

Question 6

Define the requirements for Acceptance

Answer 6

1. Must be unequivocal
2. Must be made in response to an offer
3. Must match/correspond with the offer
   (Butler machine tool co LTD v ex cell o corp LTD)
4. Must be communicated to the offeror
   (Entries Ltd v miles)

Question 7

True or False: A prescribed method of acceptance must usually be followed

Answer 7

True: Manchester diocesan council V commercial and general investments

Question 8

True or False: Silence doesn’t amount to valid acceptance

Answer 8

True: Felthouse V Bindley

Question 9

Define the Postal Rule

Answer 9

Acceptance takes effect as the letter is posted but must be in the contemplation of the parties (established by Adam’s v Lindsell)

if the acceptance letter is properly posted but does not arrive, it is still effective (as seen in Household Fire Insurance v Grant)

if the letter is incorrectly addressed, in that situation, acceptance only takes effect when received

Question 10

What is Revocation?

Answer 10

An offer can be revoked anytime before acceptance, unless supported by consideration. it is effective upon receipt

As seen in Routledge v grant

Question 11

What is a Unilateral Contract

Answer 11

Formed when an offeror intends to be bound upon performance of a requested act or condition, and performance is completed by the promisee.

As seen in Carlill v Carbolic Smoke Ball C