Contract

Question 1

What happens if an offer is too vague? (“I will give a piece a land to you for some money”)

Answer 1

Offers must be definitive and certain, therefore if it is too ambiguous it shall fail.

Question 2

What is the technical name for scenarios that tend to be similar to Offers but are not

Answer 2

Invitation to treat.

Question 3

What is an invitation to treat

Answer 3

An initiation for the party to make an Offer, common in: a) ads; b) shop displays; c) price lists.

Question 4

Where may ads constitute a valid Offer?

Answer 4

Unilateral Contracts

Question 5

What is the position on communication of an Offer.

Answer 5

The offeree must have knowledge of the offer, therefore it must be communicated to them.

Question 6

What are Unilateral Contracts

Answer 6

This is where an Offeror makes an offer to the world - it is not to a dedicated person unlike bilateral.

Question 7

At what point does a unilateral Offer become binding

Answer 7

Can only be accepted via performance.

Question 8

What are the main ways an Offer can be terminated

Answer 8

1) Revocation (by offeror); 2) Express Rejection (by offeree); implied rejection

Question 9

What is the effect once a Offer is terminated

Answer 9

Can no longer be accepted. Even in the event in a counter-offer.

Question 10

What is revocation of an Offer

Answer 10

This is where the offer chooses to revoke an offer at any point prior to acceptance - by express and direct comms.

Question 11

Can revocation be implied

Answer 11

Yes. Where: a) the offeree receives correct information; b) from a reliable source; and c) acts of the offeror would indicate that the offer no longer stands.

Question 12

Is a third party revoking the Offer valid

Answer 12

Yes. It does not need to be directly from the Offeror.

Question 13

What are the two (2) exceptions to revocation

Answer 13

1) collateral contract; 2) where the Unilateral Contract Offer was accepted.

Question 14

Why are collateral contracts and unilateral contracts exceptions to revocation

Answer 14

1) This is because the offeree has given consideration for the Offer being made; 2) An Offer is only accepted at the time of performance, once acceptance occurs a Offer cannot terminate.

Question 15

Rejection (Express and Implied)
What is express

Answer 15

This is where the Offeree rejects the Offer whether it be directly or implied.

Express - simple statement by Offeree rejecting the Offer.

Question 16

What are the two (2) types of implied rejection

Answer 16

1) Counter-offer; and 2) Lapse of time.

Question 17

What is a counter-offer

Answer 17

This is where the Offeree proposes another offer relating to the same subject-matter.

Offeree becomes Offeror.

Question 18

Exception to Counter-Offer?

Answer 18

An exception is where the Offeror proposes a collateral contract alongside the main terms. Rejection and/or counter of said collateral contract shall not affect the Original contract.

Question 19

Lapse of time

Answer 19

This is where the Offeree fails to accept the offer within a time specified, or where none is given - a reasonable period.

Question 20

What is “Reasonable” test under Lapse of time.

Answer 20

Depends wholly upon the subject-matter. If it fresh product then the sooner the better; same as goods that fluctuates rapidly (i.e shares)

Question 21

If no specified form of Acceptance is required under the Offer, how may the Offeree accept the term

Answer 21

Can be accepted in any reasonable manner and medium reasonable under the circumstances.

Question 22

If specified, the form that Acceptance must be communicated/done unless it will not be valid - what is the exception.

Answer 22

Where the method used (other than that specified) is no less advantageous to the offeror.

Question 23

Is Silence an appropriate form of acceptance

Answer 23

No - the Offeror can never specify a lack of communication resulting in Acceptance.

Question 24

How are Unilateral Contracts accepted.

Answer 24

Unilateral Contracts are accepted only complete performance.

Question 25

What are the obligations of Offerees once they begin performance

Answer 25

Non-existent; do not have to complete the performance nor notify offeror that they have begun. Do have to notify offeror within a reasonable timeframe post completion.

Question 26

Can conduct be a valid form of acceptance

Answer 26

Yes - where the offeror is aware of the conduct, it can be a valid form of acceptance. (i.e, starting to perform the terms).

Question 27

Communication?

Answer 27

Acceptance of a bilateral offer (however such acceptance shall occur) must be communicated to offeror.

Question 28

Exception to the requirement to be communicated:

Answer 28

Offeror may waive the requirement whether expressly or by implication (i.e, Ordering goods online is an offer, the store does not need to then expressly accept it),

Question 29

*What is the name where acceptance is communicated via post.

Answer 29

Postal Rule

Question 30

*What is the core premise behind the postal rule :

Answer 30

Where offer is accepted and communicated by post, acceptance shall be deemed at the moment of posting not delivery.

Question 31

*What are the exceptions to the postal rule

Answer 31

1) where the Letter is not addressed or stamped; 2) where it would not be reasonable to accept via post; and/or 3) offer stipulates (express or via implication) that acceptance is not effective until received.

Question 32

*Does Postal Rule extend to other events such as rejection?

Answer 32

No - only acceptance shall be deemed from the time of postage. All else shall be from delivery.

Question 33

*Does Postal Rule extend to instant communications, like text and emails

Answer 33

No - only post. SMS and emails shall be from delivery.