Offer and Acceptance

Question 1

What are the 5 requirements for a contract to be legally binding?

Answer 1

1. Offer
2. Acceptance
3. Intention to create legal intentions
4. Must be capacity to enter a contract
5. Must be consideration

Question 2

What is an invitation to treat?

Answer 2

A preliminary stage inviting consumers to make an offer - however it DOES NOT constitute an offer on its own. See Gibson v Manchester City Council.

Question 3

What are the 9 circumstances in which an offer ceases to exist?

Answer 3

1. End of specified time
2. Reasonable length of time expires
3. Failure of precondition
4. Rejection
5. Counter-offer
6. Request for information
7. Death of the offeror
8. Death of the offeree
9. Withdrawal of offer.

Question 4

What is the legal principle found in the case of Carlill v Carbolic Smoke Ball?

Answer 4

Offers can be addressed to the general public and are accepted when the offer is acted upon by a member of the public.