Offer And Acceptance Paper 3 Section B

Question 1

What are offers

Answer 1

Clear and firm indications of the terms that a party is willing to agree to

Question 2

What is the person called that makes the offer

Answer 2

Offeror

Question 3

What is the person called that receives the offer

Answer 3

Offeree

Question 4

What does offer and acceptance amount to

Answer 4

An agreement

Question 5

What is needed for a contract

Answer 5

Agreement +consideration+intent for legal relations

Question 6

What are invitations to treat

Answer 6

Not legally binding
They only invite the other party to make an actual offer

Question 7

What is the case for a wording of an offer having to be clear and firm

Answer 7

Gibson v MCC

Question 8

What is the case for shop displays in windows only being invitations

Answer 8

Fisher v Bell

Question 9

What is the case for shop displays on shelves only being invitations

Answer 9

PSGB v Boots

Question 10

What is the case for if the advertisement is clear enough in terms it may be and offer

Answer 10

Carlill v Carbolic Smoke Ball Co (always explain and apply)

Question 11

What is the case for offers must be distinguished from requests for information and replies to these

Answer 11

Harvey v Facey

Question 12

What is a bilateral contract

Answer 12

Most common type of contract
Both parties have an obligation so have to do something e.g one has to sell item and one has to give money to buy

Question 13

What is a unilateral contract

Answer 13

More unusual type of contract Both parties
Only one party has an obligation

Question 14

What are the 6 ways in which offers can end

Answer 14

Acceptance
Rejection or refusal
Death
Counter offer
Lapse of time
Withdrawal or revocation

Question 15

What is acceptance

Answer 15

If the offeree agrees with the terms the offer turns into agreement

Question 16

What is rejection/refusal

Answer 16

If an offeree rejects an offer it ends

Question 17

What is death of the offeror

Answer 17

If the offeror has died the offer dies with them

Question 18

What is a counteroffer

Answer 18

A counter offer ends the original offer and makes a new one
Original offer can no longer be accepted

Question 19

What is the case for a counter offer

Answer 19

Hyde v Wrench

Question 20

What was the decision in Hyde v Wrench

Answer 20

Counter offer ends the original offer and creates a new one meaning past offer can no longer be accepted

Question 21

What is lapse of time

Answer 21

Sometimes an offer will be open until a particular time. In this situation the offer will lapse (end) when that time has passed

Question 22

What is the case for lapse of time

Answer 22

Ramsgate Hotel v Montefire

Question 23

What was the decision in Ramsgate Hotel v Montefire

Answer 23

Offer had lapsed after 5 months because it was reasonable to assume circumstances have changed

Question 24

What is withdrawal/revocation

Answer 24

Offer can revoked (taken back) by the offeror as long as they have not been accepted . This means an offeror can change their mind

Question 25

What are the 2 cases for withdrawal/revocation

Answer 25

Routledge v Grant Dickinson v Dodds

Question 26

What was the decision in Routledge v Grant

Answer 26

Revocation can be done even if offer was meant to be open for a particular time as long as the revocation was communicated and there had not already been acceptance

Question 27

What was the decision in Dickenson v Dodds

Answer 27

Revocation can be by a reliable third party

Question 28

What must acceptance be

Answer 28

Must be an all terms of offer or it will be a counter offer

Question 29

Usually there is no acceptance until until the offeree communicates acceptance to the offeror. Why?

Answer 29

Respects freedom of contract because it would be unfair for the offeree to be legally bound without knowing about it and it would make contracts less certain

Question 30

What does Yates v Pulleyn say

Answer 30

Is an offeror just suggests a mode of communication, then other methods can still work . If no method is specified any reasonable communication form can be

Question 31

What was the decision In Felthouse v Bindley

Answer 31

Silence or inactivity is not acceptance Acceptance must be communicated to the offeror

Question 32

What are the 3 cases for accepting by post

Answer 32

Adam’s v Lindsel Byrne v Van Tienhoven Holwell v Hughes

Question 33

What was the decision in Adam’s v Lindsell

Answer 33

The court held that posting the letter of acceptance is effective when the letter is posted (in the post box) it does not need to be received The postal rule only applies is post is unusual means of communication

Question 34

What was the decision in Bryne v Van Tienhoven

Answer 34

Acceptance had been made - revocation is not effective as it had to be communicated before acceptance

Question 36

What are other ways to communicate acceptance

Answer 36

Email Social media Text message

Question 37

What are the 2 cases for new forms of communication

Answer 37

Entores v Miles Far East Corp Brinkibon

Question 38

What was the decision in Entores v Miles Far east Corp

Answer 38

Instant messages must actually be recieved to be ffective acceptance

Question 39

What was the decision in Brinkibon

Answer 39

Messages left during office hours are effective when they are left even if they aren’t read or listened to

Question 40

what are the conditions under Article 11 of the E commerce Regulations 2002

Answer 40

- advertisement on website = invitation to treat the placing of an order by the buyer = offer to buy -the seller will usually acknowledge this offer with an electronically generated email (your order has been received) - this is not usually acceptance but it could be depending on sellers terms -the acceptance is usually another email from the seller stating that the goods have been dispatched