Formation- agreement, offer and acceptance Flashcards
(28 cards)
What Latin term determines whether a contract has been concluded?
Consensus in idem- the meeting of the minds
This is viewed objectively.
When might concluded agreements not be enforceable?
- when the agreement is void
- when one or more of the parties has no serious intention to enter into a legally binding relationship
- when only the agreement to agree has taken place
- vague, general understandings cannot be enforced
- where parties have set conditions to be met before agreement becomes enforceable (so they have not been met yet).
When do contracts become enforceable?
Upon conclusion.
What must occur for a contract to be legitimate?
Parties must have reach point of engagement- agreement on the same thing (known as CONSENSUS IN IDEM).
True or false- parties are free to suspend obligations.
True, they can during contract formats toon e.g. by setting conditions.
What is the name given to the party making the offer?
The offeror.
What is the name given to the party to whom the offer is being made?
The offeree.
What is unqualified acceptance?
Unqualified acceptance is the acceptance of an offer without changes being made to the terms of the contract. It automatically converts the offer into a contract.
What is the effect of a counter offer (or qualified acceptance) on the original offer?
The counter offer extinguishes the original offer.
True or false- goods for sale in shop window or on the ship’s website are invitations to treat.
True- see Fisher v Bell 1961
and Chwee Kin Keong v Digilandmall.com Pte Ltd 2004
True or false- adverts are almost always invitations to treat.
True- see Partridge v Crittenden 1968 and Carlill v Carbolic Smokeball Co 1893
Why must the offer be sufficiently definite?
So that upon acceptance essential terms are clear.
Can offers be revoked after acceptance?
Offers may not be revoked after acceptance but can be any time before it has been accepted, except where offeror has stipulated time during which the offer is to remain open for acceptance.
What happens if there is no stipulation of time by the offeror during which the offer can be accepted?
The offer will lapse following a reasonable amount of time.
Offers lapse after the passage of a reasonable amount of time. When else might they lapse?
Up one death, bankruptcy or incapacity of the offeror.
Must acceptance be express?
Acceptance can be express but does not necessarily have to be. It can be implied by action in conformity with the terms of the offer.
True or false- the offeror may stipulate the mode of acceptance the offeree must take.
True, however they cannot stipulate this be done by mode of silence.
True or false- acceptance is effective upon receipt.
True.
Acceptance is effective upon receipt. Are there any exceptions to this?
Where offer and acceptance is conducted by post, where acceptance is effective on posting.
What must happen for revocation of an offer to occur?
The revocation of the offer must be received.
What happens when acceptance and revocation of an offer cross in the post?
THE POSTAL RULE APPLIES. contract has been concluded because acceptance Is defective on posting however revocation is only effective when received.
True or false- social agreements are contracts.
False- social agreements are NOT contracts.
True or false- commercial agreements are contracts.
True- commercial agreements ARE contracts.
What is an example of an enforceable social agreement?
Pre-nuptial agreements as per the Family (Scotland) Act 1985:
Where parties to a marriage or civil partnership have agreed for a financial provision to be made on divorce or dissolution of the partnership, the court may set aside or amend terms relating to a periodical allowance or the agreement of any term they consider to have not been reasonable and fair at the time it was entered into.
