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contract law > offer > Flashcards

offer Flashcards

(53 cards)

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1
Q

What is the definition of a contractual offer?

A

An expression of willingness to contract on certain terms, intending to become binding upon acceptance.

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2
Q

What is the distinction between a unilateral and a bilateral offer?

A

A unilateral offer involves a promise in exchange for an act, while a bilateral offer involves mutual promises.

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3
Q

What differentiates an offer from other communications?

A

An offer is made with the intention to be bound upon acceptance, without further negotiations.

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4
Q

When is an offer considered effectively communicated?

A

At the moment it is received by the offeree.

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5
Q

What is a valid acceptance?

A

An unequivocal agreement to the terms of the offer, communicated to the offeror.

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6
Q

What are the three essential elements for a promise to be enforceable as a contract?

A
  • Agreement (offer and acceptance)
  • Consideration (mutual exchange of value)
  • Intention to create legal relations.
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7
Q

What are the two reasoning approaches courts may use regarding offer and acceptance?

A
  • Reasoning forwards
  • Reasoning backwards.
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8
Q

What is a unilateral contract?

A

An exchange of a promise for an act, creating an obligation for one party only.

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9
Q

What is an invitation to treat?

A

An expression of willingness to negotiate, not binding unless further negotiated.

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10
Q

In Storer v Manchester City Council, what was the court’s conclusion?

A

A binding contract was formed as the council’s communication indicated an intention to be bound.

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11
Q

In Gibson v MCC, why did the court rule no contract was formed?

A

The council’s communication was deemed an invitation to treat, not a binding offer.

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12
Q

What is the general rule regarding the display of goods?

A

A display of goods is considered an invitation to treat, with the customer making the offer.

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13
Q

What was the outcome in Fisher v Bell regarding the display of a flick knife?

A

The court held that the display was an invitation to treat, not an offer.

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14
Q

What is the ruling in Pharmaceutical Society v Boots regarding the sale of goods?

A

The court ruled that the sale occurs at the cash desk, not when goods are taken from shelves.

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15
Q

In exceptional situations, when can a display of goods be treated as an offer?

A

When it is explicitly stated as an offer, as seen in Chapleton v Barry.

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16
Q

What is the general rule regarding advertisements?

A

Advertisements are typically considered invitations to treat, not offers.

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17
Q

What was the significance of Carlill v Carbolic Smoke Ball?

A

The advertisement was interpreted as a unilateral offer, creating a contract with those who performed the conditions.

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18
Q

What principle was established in Bowerman v Association of British Travel Agents?

A

Advertisements can be considered offers capable of acceptance under certain circumstances.

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19
Q

What is the general rule regarding auctions?

A

An auctioneer invites bids, which are treated as invitations to treat; the offer is made by the bidder.

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20
Q

What was the outcome in BCA v Wright concerning auction advertisements?

A

The advertisement for an auction was determined to be an invitation to treat, not an offer.

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21
Q

When can auctioneer’s words like ‘highest bidder’ indicate a unilateral offer?

A

When the auction is conducted without reserve, as in Warlow v Harrison.

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22
Q

What was affirmed in Barry v Davies regarding auctions without reserve?

Study These Flashcards
A

The auctioneer’s advertisement constituted a unilateral offer to sell to the highest bona fide bidder.

23
Q

What is the significance of holding an auction without reserve?

Study These Flashcards
A

It constitutes an offer by the auctioneer to sell to the highest bidder, creating a contractual obligation to sell to that bidder.

This principle was upheld in a court ruling where an auctioneer was found obliged to sell to the highest bidder despite the bids being lower than the expected values.

24
Q

In the context of tenders, what does an invitation to treat mean?

Study These Flashcards
A

It signifies that the person inviting tenders is making an invitation for others to submit offers, rather than making a binding offer themselves.

25
What happens when the terms 'highest bidder' or 'lowest bidder' are used in an invitation to tender?
It may be interpreted as a unilateral offer, binding the inviter to accept the highest or lowest bid received.
26
What was the outcome of Harvela Investments v Royal Trust Co of Canada regarding referential bids?
The House of Lords held that referential bids were invalid, and the first defendant was bound to accept the highest fixed bid.
27
What was the key issue in Blackpool v Blackpool regarding tenders?
The court found that the defendants had a duty to consider all tenders received, and their failure to do so made them liable.
28
What factors can imply a duty to consider tenders in court?
* Invitation directed to a small number of parties * Consistency with the parties' intentions * Clear, orderly, and familiar tender procedure.
29
What is the scope of the duty to consider tenders as stated by Bingham LJ?
The duty is breached if a tender is accepted before the deadline or if a late tender is considered; however, the authority can still reject all tenders if the decision is made in good faith.
30
What is a unilateral offer?
A promise made in exchange for an act, as illustrated in Carlill v Carbolic Smoke Ball.
31
What must happen for an offer to be effective?
It must be communicated to the offeree, as there can be no acceptance without knowledge of the offer.
32
What is the legal consequence of a counter offer?
It kills off the original offer, making it incapable of acceptance.
33
What did the court determine in the case of Gibbons v Proctor regarding rewards?
Gibbons was allowed to claim the reward despite initially being unaware of it, as he performed the terms of the contract without knowledge.
34
What can terminate an offer?
* Counter offer * Revocation * Rejection by the offeree * Lapse of time.
35
What is the ruling in Byrne v Van Tienhoven regarding revocation of an offer?
The revocation was ineffective as the acceptance had already created a contract before the withdrawal was communicated.
36
What did the case of Hyde v Wrench establish about counter offers?
A counter offer supersedes the original offer, preventing the offeree from later accepting the original terms.
37
What is the implication of an offer being conditional upon a certain event?
The offer cannot be accepted after the specified event has occurred.
38
What is the significance of the case Harris v Nickerson?
It distinguished between a statement of intention and an actual offer, ruling that an advertisement was merely a statement of intent.
39
What does the term 'cross offers' refer to?
Identical offers made by two parties that do not create a contract until one is accepted.
40
In Pratt v Transit, what duty was imposed on the party inviting tenders?
An implied duty to act fairly and in good faith.
41
What is the effect of lapse of time on an offer?
An offer expires after a specified period or after a reasonable time if no time limit is set.
42
What constitutes acceptance in the context of a bus timetable?
Acceptance could occur when the passenger boards the bus or when the conductor issues a ticket, depending on the interpretation.
43
What is the effect of lapse of time on an offer?
An offer may be terminated by lapse of time. An offer stated to last for a specific period cannot be accepted after that date. An offer without a time limit lasts for a reasonable period. ## Footnote Refer to Ramsgate Victoria Hotel v Montefiore for case law on reasonable time periods.
44
How does an offer end when conditional upon a certain event?
An offer that is stated to end upon the occurrence of a certain event cannot be accepted after that event has taken place.
45
What happens to an offer if it is subject to an unfulfilled condition?
The offer terminates if the condition it is subject to is not fulfilled. ## Footnote Refer to Financings v Stimson for relevant case law.
46
What is the impact of the offeror's death on an offer?
The offer may lapse if the offeror dies, and the offeree cannot accept the offer once they know of the offeror's death. ## Footnote Acceptance may still be valid if the offeree was unaware of the offeror's death, as seen in Bradbury v Morgan.
47
Define a unilateral contract.
A unilateral contract is an exchange of a promise for an act, typically involving a reward for performing a task, such as returning lost property. ## Footnote Refer to Carlill v Carbolic for an example.
48
How is acceptance made in unilateral contracts?
Acceptance in unilateral contracts is made by fully performing the requested act, with no need for advance notification. ## Footnote Relevant cases include Carlill v Carbolic Smoke Ball and Soulsbury v Soulsbury.
49
What is the rule regarding revocation of a unilateral offer?
A unilateral offer must be revoked using a similar method as the one used to make the offer, and revocation may be effective even if it does not reach the offeree. ## Footnote This principle is drawn from Shuey v USA.
50
Can a unilateral offer be revoked once performance has begun?
Once the offeree has begun performance, the unilateral offer cannot be revoked. ## Footnote Refer to Daulia v Four Millbank for case law supporting this rule.
51
What is the implication of starting performance on a unilateral offer?
There is an implied obligation on the offeror not to prevent the condition from being satisfied once the offeree starts to perform.
52
In what scenario can a unilateral offer be revoked after performance has begun?
A unilateral offer can be revoked after performance has begun if the offeree took the risk in hope of substantial remuneration for small exertion. ## Footnote This was established in Luxor v Cooper.
53
What did the COA emphasize in Schweppe v Harper regarding revocation of unilateral offers?
The COA emphasized that cases allowing revocation after performance has begun are rare.

contract law (2 decks)

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