Agreement and Intention

Question 1

What are the three elements of a contract?

Answer 1

1. Agreement
2. Intention to create legal relations
3. Consideration

Question 2

What case states an offer should be objective?

Answer 2

Smith v Hughes

Question 3

What case states that in commercial agreements there is a presumption that there was intention to create legal relations?

Answer 3

Edwards v Skyways

Question 4

What case states that the presumption of intent to create legal relations in commercial agreements is rebuttable, if there is specific wording to that effect?

Answer 4

Rose and Frank v Crompton

Question 5

What case states that in non-commercial/family agreements there is a presumption that there was no intention to create legal relations?

Answer 5

Balfour v Balfour

Question 6

What case states that the presumption of no intent to create legal relations in non-commercial/family agreements is rebuttable?

Answer 6

Merritt v Merritt

Question 7

What case is the authority that there must be certainty in offer and acceptance for a court to uphold the contract?

Answer 7

Scammell v Ouston

Question 8

What case is an example of vague terms causing a contract to be void?

Answer 8

Hillas v Arcos; “timber of fair specification”

Question 9

What is the definition of offer according to Treitel?

Answer 9

an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed

Question 10

Which case confirms Treitel’s definition of offer?

Answer 10

Allied Marine Transport

Question 11

What is an invitation to treat?

Answer 11

made without intention to be bound by specific terms

Question 12

What case defines self-service display in a shop as an invitation to treat?

Answer 12

Pharmaceutical Society of GB v Boots Cash Chemists

Question 13

What case defines goods on display as an invitation to treat?

Answer 13

Fisher v Bell

Question 14

What case defines tenders as an invitation to treat?

Answer 14

Spencer v Harding

Question 15

What case states that a unilateral contract will contain an offer not an invitation to treat?

Answer 15

Havela Investments

Question 16

What case defines advertisements as invitations to treat?

Answer 16

Partridge v Crittenden

Question 17

What case states that an advertisement offering a reward is not an invitation to treat?

Answer 17

Williams v Carwardine

Question 18

What case is an example of an advertisement as an unilateral contract, where acceptance need not be communicated?

Answer 18

Carlill v Carbolic Smoke Ball Co

Question 19

What is the definition of acceptance?

Answer 19

an unconditional expression of assent to the terms of an offer.

Question 20

What case states that acceptance should be communicated by the offeree?

Answer 20

Entores v Miles Far East

Question 21

What case states that acceptance may be communicated by an authorised agent?

Answer 21

Powell v Lee

Question 22

What case states that silence cannot constitute acceptance?

Answer 22

Felthous v Bindley

Question 23

What case states that silence may be taken as acceptance if there is no reason for the offeree to bind themselves?

Answer 23

Re Selectmove

Question 24

What case establishes an counter offer as an implied rejection due to newly entered provision?

Answer 24

Hyde v Wrench

Question 25

What case states that questions about an offer are not deemed as rejection and may be acceptance if it falls within the definition?

Answer 25

Stevenson Jacques and Co. v McLean

Question 26

What case states the general rule that the last shot in the battle of the forms wins?

Answer 26

Brogden v Metropolitan Railway

Question 27

What case is an example of an exchange of incompatible terms - not a true battle of forms?

Answer 27

Butler Machine Tool v Ex-Cell-O; Court found D's acceptance amounted to a counter offer that was accepted by the C, therefore the D's terms prevailed.

Question 28

What case established the postal rule?

Answer 28

Adams v Lindsell

Question 29

What is the postal rule?

Answer 29

A letter of acceptance will become binding when posted if: a) it was reasonable to use post as a method of communication b) it was properly posted; and c) the offeror did no exclude the postal rule impliedly/expressly

Question 30

What case authorised an offeror's right to exclude the postal rule?

Answer 30

Holwell v Hughes; D set specific terms for communication

Question 31

What case set precedent that if postal rule satisfied the letter need not actually arrive for acceptance to be valid?

Answer 31

Household Fire Insurance v Grant

Question 32

What case states that postal acceptance is only valid at the time of posting if it is reasonable for the offeror to expect an acceptance by post?

Answer 32

Henthorn v Fraser

Question 33

What case states that an offer can be revoked at any time even if the offeror has agreed to leave it open?

Answer 33

Routledge v Grant

Question 34

What case states that the offeror cannot revoke the offer if the offeree has give consideration for the offeror keeping the offer open?

Answer 34

Mountford v Scott

Question 35

What case states that revocation is not possible in a unilateral contract once the act of acceptance has begun?

Answer 35

Errington v Errington and Woods

Question 36

What case states that revocation must be communicated by offeror

Answer 36

Byrne v Van Tienhoven

Question 37

What case states that revocation may be communicated by reliable third party?

Answer 37

Dickinson v Dodds

Question 38

What case states that revocation is effective when it could be reasonably thought to have been received, rather than when it was?

Answer 38

The Brimnes; a telex containing revocation was received but not read, court found revocation to be valid at time of receipt.

Question 39

What US case states that if an offer was made to the public at large, revocation can be made through the same channel as the offer, provided it as the same prominence?

Answer 39

Shuey v US

Question 40

When will an offer lapse?

Answer 40

if there is an express condition or after a reasonable time period, what is reasonable depends on the facts.