26 Questions
What are the requirements of a binding contract?
Offer, acceptance, consideration and intention to create legal relations
Which of the following best describes an ‘offeree’?
The person to whom an offer is made
What approach does the court take when determining whether an agreement exists between the offeror and offeree?
An objective approach, by considering what the reasonable person would say was the intention of the parties having regard to all the circumstances
What are the requirements of a valid offer?
The offer must be clear, certain and show an intention to be bound.
In which case did the court find a valid offer?
Storer v Manchester City Council
A man is showing off his rare first edition book to his neighbour when he says, ‘I might consider selling this book for a five-figure sum’. The next day, the neighbour tells the man that he accepts his offer and gives him a cheque for £10,000. Which of the following options best describes whether the man made a valid offer to his neighbour?
No, because the statement was not clear about the price, nor did it show an intention to be bound.
Which of the following is correct regarding a bilateral contract?
Each party assumes an obligation to the other party.
Which of the following is correct in relation to an invitation to treat?
An invitation to treat cannot be accepted to form a binding contract
Which of the following is not an invitation to treat?
A notice on a tree offering a reward for the return of a missing cat
In which case did the court find there was an invitation to treat?
Fisher v Bell
The general rule that an advertisement is an invitation to treat does not apply where the advertisement amounts to a unilateral offer. What is a unilateral offer?
An offer which prescribes an act which, when performed, constitutes acceptance.
Which of the following is not a valid means of an offer terminating?
Breach
Which of the following is not an example of how an offer can come to an end?
A request for further information
Which statement is a correct description of the difference between a counter-offer and a request for further information?
A counter-offer prevents the offeree from changing their mind and accepting the original offer but a request for further information does not
Who can accept an offer?
The person/people to whom the offer was made
A woman offers by email to sell her snooker table to a man for £3,500. The man replies that he is happy to pay £3,500 for the snooker table but wants the cues, balls and framed O'Sullivan picture included for that price. The woman is happy to go ahead with that suggestion. What is the effect of the man's reply?
It amounts to a counter offer
What is the meaning of the rule that acceptance must be unqualified?
The acceptance must correspond with the offer
A farmer telephones his neighbour on Monday and offers to sell him three ducks for £50. The neighbour responds that he will pay £40 for the ducks. Later that evening, the neighbour informs his brother of the farmer's offer. The brother immediately telephones the farmer and informs him that he accepts the farmer's offer. On Tuesday morning, the neighbour telephones the farmer and says he has changed his mind and he accepts the offer of £50. Is there a contract formed?
No, there is no contract between the farmer and the brother because the farmer did not accept the brother's offer
What is the effect of a counter-offer?
The original offer is terminated
Which case establishes the fact that an offeror can include terms which prescribe that a particular mode of acceptance is to be used for the acceptance to be binding?
Manchester Diocesan Council for Education v Commercial and General Investments
What is the postal rule?
Where acceptance is communicated by post, the contract is formed as soon as the letter of acceptance is properly posted
Which case was not concerned with communication by instantaneous means?
Carlill v Carbolic Smoke Ball Co.
In what situation will the postal rule apply?
Where the letter accepting an offer is lost in the post
A binding contract requires all material terms to be certain and complete
True
What test does the court apply to determine whether the parties have reached an agreement on all material terms?
An objective test
The courts will readily strike down an agreement if it lacks certainty
False
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