Agreement and Contractual Intention

Question 1

What needs to be present for both parties to reach an agreement?

Answer 1

One party must make an offer which is accepted by the other

Question 2

What is an expression of willingness?

Answer 2

Eg a newspaper advert, letter, email etc as long as it communicates the basis on which the offeror is prepared to contract

Question 3

What is an intention that it will become binding?

Answer 3

Not the actual person’s intention but what is done between the parties

Question 4

What is the distinction between on offer and an invitation to treat?

Answer 4

An invitation to treat is ‘thinking’ about selling etc rather than actually making an offer which is clearer

Question 5

are adverts contracts of invitations to treat?

Answer 5

invitations to treat

Question 6

most contracts are bilateral- what does this mean?

Answer 6

a promise in return for a promise

Question 7

whats the difference between a bilateral and unilateral contract?

Answer 7

only one party is making a promise (i.e. to pay a reward) so no one is bound to do the specified act

Question 8

what are unilateral contracts also called?

Answer 8

‘if’ contracts e.g. if you do X i promise to do Y

Question 9

is an auctioneer’s request for bids an invitation to treat or an offer and why?

Answer 9

an invitation to treat because the bid is an offer which the auctioneer may accept or reject

Question 10

what kind of contract would an auction advertised ‘without reserve’ be?

Answer 10

a unilateral contract by the auctioneer (i.e. a promise to accept the highest bid) which is accepted by the highest bidder

Question 11

what is a tender?

Answer 11

a company’s offer to the Council setting out what needs t be done and the price

Question 12

why are requests for tenders invitations to treat?

Answer 12

the tenders are the offers which may or may not be accepted by the business which has invited them

Question 13

what are the three way to terminate an offer?

Answer 13

revocation (withdrawal) of the offer by the offeror, rejection by the offeree and lapse of time

Question 14

why may a court refuse to enforce a contract?

Answer 14

if there is uncertainty about what has been agreed or if some important matter is still left to be determined

Question 14

how are the facts of an agreement judged objectively?

Answer 14

they are judged in context such as whetehr the parteis are in the same trade, trade usage, whether the agreement has been acted on or for any length of time, and whether there is an objective mechanism for resolving any uncertainty such as an arbitration clause

Question 14

what is the postal rule?

Answer 14

subject to certain limitations, a letter of acceptance which is posted is complete on posting and the contract will be formed at this point

Question 15

what are the limitations to the postal rule?

Answer 15

it only applies to acceptances, it only applied where it was reasonable for the acceptance to be sent my post, the letter must be properly stamped, addressed and posted, and the rule may be excluded by the offeror if stated.

Question 16

what is acceptance?

Answer 16

an unqualified expression of assent to the terms of an offer

Question 17

what formal requirements must an agreement meet to be legally enforceable?

Answer 17

must be in writing and specifically state that it is intended to have legal effect

Question 18

what are some exceptions for these formal requirements?

Answer 18

oral agreements don’t have to have any specific forms of words

Question 19

which type of agreement has a strong presumption that the parties intend for their agreement to have legal consequences?

Answer 19

commerical agreements

Question 20

which type of agreement DOESN’T have a strong presumption that the parties intend for their agreement to have legal consequences unless stated otherwise?

Answer 20

domestic agreements e.g. between family or friends