Offer & Acceptance Flashcards

Question

Acceptance

Answer 1

- Must be communicated - There is no contract until offer is accepted - Revocation cannot take place after offer is accepted

Answer 2

- Postal Acceptance Rule - Prescribed mode - Via Third Party

Answer 3

- Must be in response to the offer

Answer 4

- Knowledge of the offer is required | - Not sufficient that the wishes of the parties simply coincide through accident

Answer 5

- Acceptance must be communicated to the offeror | - Offer cannot be accepted by silence

Answer 6

- Where the offeror has waived the requirement for communication - Carlill v Carbolic Smoke Ball Co.

Answer 7

- Acceptance by post takes effect where and when letter is posted (Dispatch Rule) - Exception to rule that acceptance must be communicated - Risk of rule falls on offeror - Only applies if reasonable for offer to be accepted by post

Answer 8

- Where it is reasonable to use telegraph | - Acceptance takes place when the acceptance is handed to the person authorised to take telegraphs

Answer 9

- Postal rule does not apply to these - They are a form a instantaneous communication - Not an exception

Answer 10

- General Contractual principles will be applied to issues raised by electronic correspondence

Answer 11

- an offeror may prescribe that acceptance is made in a certain way - Offeree must accept via the prescribed method if the offeror clearly states that he will only be bound if the prescribed method is followed

Answer 12

Communication of Acceptance

Answer 13

- Railway and Coal - Agent did not sign the contract - Had issues, referred to contract to resolve them -Sued and said there was no contract Held: - Contract was enforceable because they behaved as so - Can accept through behviour

Answer 14

Can accept a contract through behaviour

Answer 15

- Police officer unknowingly fulfilled a reward Held: - Court allowed officer to collect the reward - Exception to the rule - Must have knowledge of the offer to accept it

Answer 16

Invitation to treat

Answer 17

- Selling Council house - Council "may" be prepared to sell the house - Is it an offer? Held: -No - Not capable of being accepted

Answer 18

- Said there was an auction that was selling office furniture - Did not actually sell the office furniture Held: - There was no offer - Statement of Intention

Answer 19

Supply of Information

Answer 20

-Told Pen is around £900 - H agreed to buy it - F argued that it was not an offer, he was only stating that he was willing to sell at Held: -It was not an offer - It was a Supply of Information

Answer 21

Advertisement | Invitation to treat

Answer 22

Goods on Display | Acceptance

Answer 23

- Self Service Shop - when does acceptance take place? Held: - Offer is accepted when item is swiped and placed in bag

Answer 24

Offer & Acceptance

Answer 25

- S wanted to buy a council house - Signed the agreement and returned it to the council - Gov't changed before the council signed it - New gov't did not want to sign it Held: - S did everything he could to bind himself - Gov't was bound to sell

Answer 26

- Parking Facility - Does the offer occur when ticket machine was ready for payment or when money goes in? Held: - Acceptance was made when money was inserted

Answer 27

Statement of Intention

Answer 28

- Agreements will not be enforced unless the parties intended to create contractual relations

Answer 29

- Came with wife to England - He left, she stayed - He gave her money to stay - They got divorced - Does he have to continue to pay her the £? Held: - No - Agreements made while still spouses are generally not enforceable - Family Members

Answer 30

- Agreement entered into in domestic context - Presumption is that the parties did not intend to create legal relations - Generally, no

Answer 31

- Agreements in domestic situations are typically non binding

Answer 32

- Mother to pay maintenance - They fought - J sued her own daughter - Is there a binding contract? Held: - No - Not sufficient evidence

Answer 33

- Agreements entered into in domestic situations can be binding if the agreement is contractual in nature

Answer 34

- P to live with C to take care of them - Agreed to give house to P when die - C changed will - Was the agreement binding? Held: - Yes - Agreement was contractual in nature

Answer 35

- Test is objective | - If reasonable person concludes that there is an intention to contract, than person making promise would be bound

Answer 36

- General assumption that there is an intention to create legal relations

Answer 37

- M subsidiary approached K for a loan - K gave loan, wanted guarantee from M - M said they won't guarantee, but it is part of their public policy to repay loans - M wrote a letter of comfort (not an agreement) - M took the loan - M did not pay K back Held: - No legal effect - Comfort letter is not a guarantee

Answer 38

- Commercial Agreements

Answer 39

o In order to constitute a valid contract, the parties must express themselves that their meaning can be determined with a reasonable degree of certainty * Must be reasonably clear * They both meant the same thing

Answer 40

May & Butvcher v R (1945) Hillas v Arcos (1932) Foley v Classique Coaches (1934

Answer 41

* Was there a contract in the case? * Price is important * They said they would agree upon a price in the future * Used tents * Did R have to sell the excess of tents to P? * Courts said no * Price was too vague, so not really a contract

Answer 42

* Contract for sale of timber * Gave option to buy more timber in the following year * Because it gave the quantity, it was a valid contract * Is it reasonable to set a price/amount? * What is reasonable given the circumstances

Answer 43

* Supply of Petrol * Price agreed by parties in writing and from time to time * Binding without a specific price? * Held: it was a binding agreement * Why different from other case? * Petrol price changes all the time. More flexible regarding price. Tents don’t change.

Answer 44

Scrammell v. Ouston (1941) Nicolene v Simmonds (1953) Winn v Bull Chancery Division (1877) Raffles v Wichelhaus (1864)

Answer 45

* D agreed to buy a van from P * Place higher purchase terms * Was there a contract based on higher purchase terms? * Held: no, not specific enough * If no certainty, then there is nothing for the court ot interpret.

Answer 46

* One term at the end. Very vague and leacked meaning * Argued that the quality of the product was poor * P argued that they have a contract * Held: removed problematic clause * Severance of the problematic term in the contract * Court wants to do the least intrusive thing in order for the contract to continue

Answer 47

* Lease a dwelling house. * If agreement is “subject to contract”, need a contract in order for the agreement to be enforceable * Term sheet is not a contract

Answer 48

* Unusual * P was supposed to sell cotton to D * Supposed to arrive on a ship called the peerless * There were more then one ship called this * P was ready to sell, D didn’t want it anymore * D said that he meant the peerless that arrived at a later date * Should D be bound? * Held: no binding contract unless the parties agree to the same thing * Too ambiguous

Answer 49

Generally, No Walford v Miles (1992) Petromec Inc. v Petroleo Brasileiro SA Petrobas (2005)

Answer 50

* Sale of photo item * P said that D said they wouldn’t go elsewhere * D did go elsewhere * Is this enforceable? * Problem: cannot make a promise for an indefinite amount of time * Limited in duration * Not enforceable

Answer 51

* Pruchase of oil production platform * Anticipated that it need to be upgraded * Discovered new oilfield * Had to make changes to contract * 4 parties * 2 parties had agreement to negotiate in good faith regarding upgrade * Is this enforceable? (Negotiate in good faith) * Common law: do what you said you would in the contract * It was an agreement to agree * Can’t prove “lack of good faith” * Loss was quantifiable * Was termination made in good faith * Judge: good faith is not justification to terminate a contract * Agreement was enforceable * If sophisticated parties, we make it difficult for them to get out of contracts that they get into

Answer 52

``` Bear Stearns Bank v Forum (2007) • P owed D money • D would sell titles to P • Court: valid agreemen • Pagnan v Feed Products (1987) • Parties are masters to their own contractual state • Should know consequences ```

Answer 53

British Steel v Cleveland Bridge & Engineering

Answer 54

• Letter of intent to supply with nodes • Negotiated terms of contract • No contract agreed originally • Quantum Marowit? • The amount the goods that we have provided to • Made a contract claim, if not, thy provided goods which have a value • D said no, they are not paying. Counter sued because of delay • Question • Type of contract? o Executory contract: if do x, I will do Y o Not applicable in this case o No if o Still in state of negotiations o By deliverying nodes, does not enforce contract • Held: D had obligation to pay P the value of nodes. • D couldn’t claim damages because there was no contract

Answer 55

Once performance has begun, court will usually enforce the agreement oFoley v Classique coaches oSudbrook Trading Estate Ltd v Eggleton (1983)

Answer 56

``` Offer Acceptance Intention Certainty Consideration (if not, promissory estoppel) ```

Offer & Acceptance Flashcards

(83 cards)