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offer Acceptance Flashcards

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1
Q

What three elements must be present for a binding contract?

A

Offer and acceptance, Intention to create legal relations, Consideration

These three elements are essential for the formation of a legally binding contract.

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2
Q

Who is the offeror in a contract?

A

The person making the offer

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3
Q

Who is the offeree in a contract?

A

The person to whom the offer is made

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4
Q

What constitutes a clear and certain offer?

A

An offer that displays an intention to be bound and is communicated unequivocally

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5
Q

What approach do courts take when determining if an agreement exists?

A

Objective approach focusing on outward expressions rather than internal intent

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6
Q

What case illustrates the objective approach to agreement?

A

Storer v Manchester City Council [1974] 1 WLR 1403

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7
Q

What are the two types of contracts?

A

Unilateral contracts, Bilateral contracts

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8
Q

What is a bilateral contract?

A

A contract where each party makes a promise to the other

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9
Q

What is a unilateral contract?

A

A contract where one party makes an offer that requires an act to be performed by another party

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10
Q

Give an example of a bilateral contract.

A

In 10 days time, you will deliver a watch to me, and I will pay you £100.

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11
Q

Give an example of a unilateral contract.

A

If you deliver a watch to me in the next 10 days, I will immediately pay you £100.

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12
Q

What is an invitation to treat?

A

A first step in negotiations that may lead to a firm offer

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13
Q

What is the general rule regarding advertisements?

A

Advertisements are regarded as invitations to treat

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14
Q

What case established that an advertisement could be a unilateral offer?

A

Carlill v Carbolic Smoke Ball Co (1893) 1 QB 256

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15
Q

What must an advertisement contain to be considered a unilateral offer?

A

A clear prescribed act and intention to be bound

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16
Q

What is the significance of the case Fisher v Bell [1961] 1 QB 394?

A

It established that goods displayed in a shop window are an invitation to treat

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17
Q

What is the implication of an invitation to tender?

A

It is generally deemed an invitation to treat, inviting offers rather than making an offer

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18
Q

What is the exception to invitations to tender?

A

If the invitation expressly contains an undertaking to accept the highest or lowest bid

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19
Q

What is the general rule regarding auction sales?

A

The auctioneer’s request for bids is an invitation to treat

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20
Q

What happens in an auction ‘without reserve’?

A

The seller promises to sell to the highest bidder regardless of the bid amount

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21
Q

What are the twin requirements of a unilateral offer in Carlill’s case?

A

A prescribed act and a clear intention to be bound

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22
Q

What is the difference between an offer and an invitation to treat?

A

An offer is a proposal to enter into a contract; an invitation to treat is merely an invitation to negotiate

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23
Q

Fill in the blank: An offer must be ______.

A

Clear and certain

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24
Q

True or False: An invitation to treat can form a binding contract.

A

False

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25
What is an invitation to treat?
An invitation to treat is not an offer and is a first step in negotiations.
26
What must an offeror show to indicate intention to be legally bound?
An offeror must show intention to be legally bound; phrases like 'may be prepared to sell' do not indicate this.
27
Can an invitation to treat be accepted to form a binding contract?
No, an invitation to treat cannot be accepted to form a binding contract.
28
What are advertisements generally considered in legal terms?
Advertisements are generally considered invitations to treat, unless they relate to unilateral contracts.
29
What happens in most auctions regarding bids?
In most auctions, the bid is the offer, accepted by the fall of the auctioneer's hammer.
30
What are the three ways an offer can be terminated?
* Rejection * Lapse * Revocation
31
What occurs when an offer is rejected?
An offer is terminated by rejection and cannot be accepted thereafter unless the offeror makes the same offer again.
32
How is a counter-offer related to rejection?
A counter-offer is deemed a rejection of the original offer and cannot be accepted later.
33
What distinguishes a counter-offer from a request for information?
A request for clarification does not reject the original offer, while a counter-offer does.
34
What causes an offer to lapse?
* Passage of time * Death of one of the parties
35
What is the effect of the death of the offeror on the offer?
If the offeree knows the offeror has died, the offer will lapse; if not, it probably will not.
36
Can an offer be revoked after acceptance?
No, an offer cannot be revoked after acceptance.
37
When is revocation of an offer effective?
Revocation is effective only upon actual notice reaching the offeree.
38
What is the effect of indirect communication of revocation?
Revocation is effective if the offeror shows intention to revoke and notice reaches the offeree.
39
What is the implication of a unilateral offer?
Acceptance is perceived as the complete performance of the act required by the terms of the unilateral offer.
40
What happens if the offeree has partly performed in a unilateral contract?
The offeror may be under an implied obligation not to revoke the offer once performance has commenced.
41
What must acceptance be in response to?
Acceptance must be in response to the offer.
42
What is the mirror image rule?
Acceptance must correspond exactly with the terms of the offer.
43
What happens if a mode of acceptance is prescribed?
If a mode is clearly mandatory, only that mode will suffice; otherwise, any no less advantageous mode can be used.
44
What is the general rule regarding communication of acceptance?
Acceptance must be communicated to the offeror and takes effect upon communication.
45
What is the postal rule?
Acceptance takes effect from the moment the letter of acceptance is properly posted.
46
What is a key case related to the postal rule?
Adams v Lindsell (1818) 1 B & Ald 681.
47
What is the postal rule?
The postal rule states that acceptance takes effect from the moment the letter of acceptance is properly posted, not when it is received by the offeror. ## Footnote Key case: Adams v Lindsell (1818) 1 B & Ald 681 established this rule.
48
When is a letter considered properly posted?
A letter is properly posted when it is put into an official letter box or into the hands of an authorized employee of the Post Office. ## Footnote It is not properly posted if given to a postman only authorized to deliver letters.
49
What is the rationale behind the postal rule?
The rationale is to do justice between the offeror and offeree, acknowledging that one party may be prejudiced by delays or loss of letters. ## Footnote The rule places a greater burden on the offeror, as posting is easier to prove than receipt.
50
Does the postal rule apply if acceptance is delayed or lost?
Yes, the postal rule applies even if the acceptance is delayed or lost in the post. ## Footnote Example case: Household Fire and Carriage Accident Insurance Co. v Grant (1879) 4 Ex D 216.
51
Under what circumstances does the postal rule not apply?
The postal rule does not apply if: * It was not contemplated that post would be used * The letter is revoking an offer * The acceptance is incorrectly addressed * The offeror disapplied the postal rule.
52
What happens if an acceptance is incorrectly addressed?
The postal rule may be displaced if the acceptance is incorrectly addressed, as the offeree's carelessness forfeits the benefit of the rule.
53
What is required for an offeror to disapply the postal rule?
The offeror can require actual communication by stating in their offer that receipt of acceptance is necessary. ## Footnote Key case: Holwell Securities v Hughes [1974] 1 WLR 155.
54
When does acceptance take place in instantaneous communication?
Acceptance takes place at the moment it is received by the offeror. ## Footnote Key case: Entores v Miles Far East Corporation [1955] 2 QB 327.
55
What happens if the acceptor believes their acceptance was communicated but it was not received?
The offeror may be estopped from denying receipt of the acceptance if the non-receipt was due to their fault.
56
How does the treatment of email communications differ from the postal rule?
The postal rule is inapplicable to email; acceptance is only effective when the email is received on the offeror's server. ## Footnote Key case: Thomas v BPE Solicitors [2010] EWHC 306.
57
What did the case of The Brimnes determine regarding office hours?
A message sent during office hours is effective when received, even if not seen until after hours.
58
What was established in the case of Mondial Shipping and Chartering BV v Astarte Shipping Ltd regarding telex communications?
A telex sent outside ordinary office hours is deemed received at the start of business the following working day.
59
What is a unilateral contract regarding communication of acceptance?
In a unilateral contract, acceptance is completed by performance of the required acts, with no need for separate notification to the offeror. ## Footnote Key case: Carlill v Carbolic Smoke Ball Co. (1893).
60
What is required for a contract to be enforceable?
A binding contract requires all material terms to be certain and complete.
61
What test do courts apply to determine if an agreement is enforceable?
Courts apply an objective test to determine if all material terms have been agreed upon by the parties.
62
What happens if an agreement is too vague or uncertain?
If an agreement is too vague or uncertain, a court may not be able to enforce it. ## Footnote Example case: Scammell v Ouston [1941] AC 25.
63
Can a court enforce an agreement that contains vague terms?
Yes, if the terms can be given a reasonable meaning based on the parties' previous dealings, as in Hillas v Arcos (1932).

Contract Law (7 decks)

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