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Offer And Acceptance 3B Flashcards

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1
Q

What is the definition of an offer?

A

A clear and firm indication of the terms that a party is willing to agree to.

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2
Q

What must both the offer and the acceptance be?

A

The SAME terms

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3
Q

What can an agreement be?

A

Legally binding

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4
Q

What are the three parts to a contract?

A

Agreement
Consideration
Intent for legal relations

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5
Q

What does Gibson v MCC say?

A

If the wording is not clear or firm enough to be an offer then nothing can be accepted.

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6
Q

What are invitations to treat?

A

Invites for other party to make an offer - Not legally binding.

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7
Q

Which case says that shop window displays are an invitation to treat?

A

Fisher v Bell

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8
Q

Which case says shop shelves are invitations to treat?

A

PSGB v Boots

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9
Q

Which case says written advertisements in newspapers are invitations to treat?

A

Partridge v Crittenden

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10
Q

Why is it good that windows, shelves and written advertisements are invitations to treat?

A

The advertiser may have limited stock.
The advertiser has the right to refuse if eg. Underage

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11
Q

What is an exception to the written advertisements rule?

A

If the advertisement is clear and firm enough in its terms it can be an offer.

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12
Q

Which case says that where an advert is so clear in its terms that it is capable of being an offer - usually this only applies to unilateral contracts.

A

Carlill v Carbolic Smoke Ball Co

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13
Q

What does Carlill v Carbolic Smoke Ball say?

A

where an advert is so clear in its terms that it is capable of being an offer - usually this only applies to unilateral contracts.

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14
Q

What did Harvey v Facey say?

A

Requests for information and the answers are not offers

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15
Q

Which case says Requests for information and the answers are not offers?

A

Harvey v Facey

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16
Q

What is a bilateral contract?

A

Where both parties have obligations and have to do something.

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17
Q

What is a unilateral contract?

A

Only one party has an obligation. (Normally reward, contest or offers to the world and can be accepted by performance.

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18
Q

What are the 6 ways an offer can end?

A
  1. Acceptance
  2. Rejection
  3. Death (where offeree knows)
  4. Counter offer
  5. Lapse of time
  6. Revocation
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19
Q

Which case says a counter offer ends the original offer?

A

Hyde v Wrench

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20
Q

What does Hyde v Wrench say?

A

a counter offer ends the original offer

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21
Q

Why is it good that a counter offer ends the original offer?

A

If lots of prices get suggested, it could be confusing to know when there is acceptance. This keeps things CERTAIN

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22
Q

Why is it bad that counter offers end the original offer?

A

It may discourage negotiations if people know that making a counter offer means they run the risk of losing the contract entirely - this may go against FREEDOM OF CONTRACT.

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23
Q

Which case says an offer can lapse after an amount of time where it is considered reasonable to assume that circumstances have changed?

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A

Ramsgate Hotel v Montefiore

24
Q

What does Ramsgate Hotel v Montefiore say?

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A

an offer can lapse after an amount of time where it is considered reasonable to assume that circumstances have changed

25
Why is it good that offers can lapse?
Allows for FREEDOM OF CONTRACT and is FLEXIBLE.
26
Why is it bad that offers can lapse?
UNCERTAIN because there is no set time.
27
Which case says revocation can be done even if the offer was meant to be open for a particular time, as long aa the revocation was communicated and there was no acceptance?
Routledge v Grant
28
What does Routledge v Grant say?
revocation can be done even if the offer was meant to be open for a particular time, as long aa the revocation was communicated and there was no acceptance
29
Which case says that revocation can be communicated by a reliable third party?
Dickenson v Dodds
30
What does Dickenson v Dodds say?
revocation can be communicated by a reliable third party
31
Why is it good that revocation can be communicated through a reliable third party?
It is silly to expect the offeror to personally revoke every offer so it is FLEXIBLE.
32
Why is it bad that revocation can be communicated through a reliable third party?
There is a problem working out who a ‘reliable third party’ is therefore UNCERTAIN.
33
Why is it good that there is no acceptance until the offeree communicates acceptance to the offeror?
It respects FREEDOM OF CONTRACT because it would be unfair for the offeror to be legally bound without knowing about it and it would make contracts less certain.
34
Which case says that the offeror can specify that the acceptance must be made in a particular way?
Yates v Pulleyn
35
What does Yates v Pulleyn say?
the offeror can specify that the acceptance must be made in a particular way
36
Which case says silence or in activity is not acceptance?
Felthouse v Bindley
37
What does Felthouse v Bindley say?
silence or in activity is not acceptance
38
What is the exception to communicating the acceptance to the offeror?
Carlill - acceptance can be made by conduct (usually in unilateral contracts)
39
Which case says posting a letter of acceptance is effective when the letter is posted (placed into postbox) and that it does not have to be received?
Adams v Lindsell
40
What does Adams v Lindsell say?
posting a letter of acceptance is effective when the letter is posted (placed into postbox) and that it does not have to be received.
41
When does the Adams v Lindsell principle apply?
If Post is the usual/expected means of communication. The letter must be correctly addressed and stamped. The offeree has to be able to prove that the letter was posted.
42
What happened in Byrne v Van Tienhoven?
The acceptance was made before the revocation therefore the revocation was ineffective.
43
What is one positive about the postal rule?
Creates certainty as it gives definite time of acceptance.
44
What are 2 negatives to the postal rule?
If a party specifically says they must receive the letter, this may override the postal rule - Uncertain. It has limits on when it is applied and and it goes against freedom of contract as the offeror may not be aware of when they have entered the contract.
45
What does Entores v MFEC say?
Instant messages must actually be received to be effective acceptance.
46
Which case says Instant messages must actually be received to be effective acceptance?
Entores v MFEC
47
Is the Instant messages rule from Entores v MFEC effective?
No as there is uncertainty over when an email or text message is received. Is it when it arrives on the device or is it when it has been read?
48
What does Brinkibon say? 2 things.
Messages left in office hours are effective when they are left NOT when they are read or listened to. If the parties have been communicating outside of office hours in the past then acceptance can occur then.
49
What case says Messages left in office hours are effective when they are left NOT when they are read or listened to?
Brinkibon
50
What case says If the parties have been communicating outside of office hours in the past then acceptance can occur then?
Brinkibon
51
What does the Brinkibon rule also apply to?
Offers and revocations
52
What says acceptance surrounding buying online occurs in the dispatch email?
Article 11 of the E-Commerce Regulations 2002.
53
What says acceptances will be effective when the parties to whom they are addressed are able to access them. (Inbox)?
Article 11 of the E-Commerce Regulations 2002.
54
What does Article 11 of the E-Commerce Regulations 2002 say?
acceptance surrounding buying online occurs in the dispatch email And acceptances will be effective when the parties to whom they are addressed are able to access them. (Inbox)
55
What are the 4 key themes of evaluation?
Certainty/Rigidity Uncertainty/Flexibility Freedom of contract Bargaining Power

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