ITCLR and Agreement

Question 1

What is the first key principle of ITCLR?

Answer 1

in order for an agreement to be legally binding there must be an ITCLR between the parties and these intentions are judged objectively

Question 2

What is the second key principle of ITCLR?

Answer 2

there is a rebuttable presumption that there is no ITCLR in a domestic or social arrangement

Question 3

What is the third key principle of ITCLR?

Answer 3

the presumption may be rebutted where the facts indicate there was an ITCLR

Question 4

What is the fourth key principle of ITCLR?

Answer 4

for commercial arrangements, there is a rebuttable presumption that there is an ITCLR

Question 5

What is the fifth key principle of ITCLR?

Answer 5

the presumption of ITCLR may be rebutted where facts indicate there was no ITCLR

Question 6

What are the 5 stages of an agreement?

Answer 6

1) invitation to treat
2) offer
3) counter-offer
4) acceptance
5) revocation

Question 7

What is the key rule for agreement?

Answer 7

the existence of agreement is determined by ascertaining the objective intentions of the parties when looking ate the words and conduct of the parties from the perspective of a reasonable person

Question 7

What is an invitation to treat?

Answer 7

willingness to receive offers or enter negotiations, it lacks an intention to be bound and lacks certainty

Question 8

What is an offer?

Answer 8

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

Question 9

What is a counter-offer?

Answer 9

rejection of the terms of an offer, it extinguishes the original offer

Question 10

What is acceptance?

Answer 10

final and unqualified approval of the terms, point at which the contract is formed

Question 11

What 4 things must acceptance be?

Answer 11

1) unequivocal (unambiguous)
2) made in response to an offer
3) match the offer
4) communicated to the offeror

Question 12

What is not valid acceptance?

Answer 12

silence

Question 13

What is important for revocation?

Answer 13

must take place before acceptance

Question 14

What is the general rule for actions?

Answer 14

auctioneer’s request for bids is an invitation to treat

Question 15

What is a unilateral offer?

Answer 15

offer bound upon performance of a requested act or condition

Question 16

What is the offer called when it is bound upon the performance of a requested act or condition?

Answer 16

unilateral offer

Question 17

What is the postal rule?

Answer 17

acceptance takes place as letter is posted

Question 18

What are 2 cases for social and domestic arrangements?

Answer 18

Balfour v Balfour [1919] - Sri Lanka, £30
Blue v Ashley [2017] - Sports Direct, pub

Question 19

What happened in Balfour v Balfour [1919]?

Answer 19

verbal agreement between husband and wife to pay £30 per month whilst she remained in England and husband move to Sri Lanka, dispute arose and wife started divorce proceedings, wife sought to enforce £30 but trial judge and Court of Appeal said there was no contract

Question 20

What case was about a husband and wife whose agreement for the husband to pay the wife £30 when he went to Sri Lanka was unenforceable?

Answer 20

Balfour v Balfour [1919]

Question 21

What happened in Blue v Ashley [2017]?

Answer 21

A promised B he would give him a lot of money if share price of Sports Direct went to a certain amount, not legally binding as no ITCLR, made up in a pub = social setting

Question 22

What was the case where a promise was made for a lot of money if the share price of Sports Direct went to a certain amount in a pub?

Answer 22

Blue v Ashley [2017]

Question 23

What is a case about rebutting the presumption?

Answer 23

Merrit v Merrit [1970] - divorced, transfer home

Question 24

What happened in Merrit v Merrit [1970]?

Answer 24

ex-husband agreed to transfer matrimonial home to ex-wife once she had repaid balance on the mortgage, she did, husband appealed but unsuccessful as agreement was made after they separated (so no longer a domestic arrangement where ITCLR is not assumed)

Question 25

What was the case about an ex-husband who appealed agreement with ex-wife to transfer home to her once she had prepaid the balance on the mortgage?

Answer 25

Merritt v Merritt [1970]

Question 26

What are 2 cases on invitation to treat?

Answer 26

Partridge v Crittenden [1968] - cocks, hens Fisher v Bell [1961] - knife

Question 27

What happened in Partridge v Crittenden [1968]?

Answer 27

ad selling bramblefinch cocks and hens for 25s each, high court held there is an invitation to treat

Question 28

What case showed an ad for cocks and hens for 25s each?

Answer 28

Partridge v Crittenden [1968]

Question 29

What happened in Fisher v Bell [1961]?

Answer 29

display of flick knife in shop window saying 'Ejector knife - 4s' held to be an invitation to treat

Question 30

What case had a knife in a shop window and was held to be an invitation to treat?

Answer 30

Fisher v Bell [1961]

Question 31

What case is about offers?

Answer 31

Harvey v Facey [1893] - response to request

Question 32

What happened in Harvey v Facey [1893]?

Answer 32

response to a request about price of an item was held not to be an offer

Question 33

What case held that a response to a request about the price of an item was not an offer?

Answer 33

Harvey v Facey [1893]

Question 34

What is a case about the postal rule?

Answer 34

Adams v Lindsell (1818) - wool

Question 35

What happens in Adams v Lindsell (1818)

Answer 35

D writes to plaintiffs offering to sell wool, asks for reply by post, D misdirects letter so it arrives later than usual, in meantime P sells wool to someone else, Court held there was a valid contract on day acceptance was sent by post

Question 36

What case was about someone offering to sell wool to someone but selling to someone else after reply by post had already been sent?

Answer 36

Adams v Lindsell (1818)

Question 37

What is a case about unilateral contracts?

Answer 37

Carlill v Carbolic Smoke Ball Company [1892] - £100 reward, flu

Question 38

What happened in Carlill v Carbolic Smoke Ball Company [1892]?

Answer 38

£100 reward to anyone who gets flue after using smokeball 3 times per day for 2 weeks

Question 39

What was the case about a reward of £100 for anyone who got the flue after using the smokeball 3 times per day for 2 weeks?

Answer 39

Carlill v Carbolic Smoke Ball Company [1892]

Question 40

What is a case about counter-offers?

Answer 40

Hyde v Wrench (1840) - land

Question 41

What happened in Hyde v Wrench (1840)?

Answer 41

offer to sell land to plaintiff for £1000, rejected by P's reply offering £950, D rejects, P wants to accept original offer but counter-offer renders original offer as expired, D must agree to revive original offer

Question 42

What was the case where land was offered at £1000 but rejected by counter-offer of £950?

Answer 42

Hyde v Wrench (1840)

Question 43

What is a case about auctions?

Answer 43

Barry v Davies [2000]

Question 44

What happened in Barry v Davies [2000]

Answer 44

auctioneer withdrew 2 engine analyser machines from auction, highest bid = £400, machines worth £14,000 each, held bound to sell to highest bidder, remedy = difference in price between agreed price and market value

Question 45

What was the case where 2 analyser machines were bid at an auction for £400 but withdrawn as they were worth £14,000 each?

Answer 45

Barry v Davies [2000]