Auctioneer's Offer and Reserve Price Debate

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Questions and Answers

What is the 'mirror image' rule of contractual formation?

  • A rule requiring contracts to be signed in front of a mirror
  • A rule requiring contracts to reflect the image of the contracting parties
  • A rule requiring contracts to be written in a mirrored font
  • A rule requiring offers to be matched by clear and unequivocal acceptances (correct)

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

  • An offer involves negotiations, while an invitation to treat does not
  • An offer is binding, while an invitation to treat is not
  • An offer is a statement of willingness to enter into a contract on stated terms, while an invitation to treat is an expression of willingness to enter negotiations (correct)
  • An offer is a formal document, while an invitation to treat is an informal statement

In the case of Gibson v Manchester City Council, what did the council provide to the tenants?

  • A contract for purchasing a council house
  • An invitation to treat for purchasing a council house
  • An offer to purchase a council house
  • A brochure explaining the process for purchasing a council house (correct)

What distinguishes between an offer and an invitation to treat?

<p>The intention of being bound by acceptance without further negotiation (A)</p> Signup and view all the answers

What do most cases discussed in this chapter involve?

<p>Allegations of breach of contract (D)</p> Signup and view all the answers

How do courts use the requirements of offer and acceptance in deciding cases?

<p>To reason forwards or backwards in deciding cases (B)</p> Signup and view all the answers

What is the general rule regarding invitation to tender?

<p>Invitation to tender is an invitation to treat, offer is made by tender submitter, and acceptance is made by the person inviting tenders when one is accepted. (D)</p> Signup and view all the answers

In which case was the invitation to tender held to be an offer for a unilateral contract?

<p>Harvela Investments Ltd v Royal Trust Co of Canada (A)</p> Signup and view all the answers

What duty does the party inviting tenders have according to Pratt Contractors Ltd v Transit NZ UKPC 33?

<p>Duty to act fairly and in good faith (C)</p> Signup and view all the answers

What can acceptance be made by, as demonstrated in the case of Carlill v Carbolic Smoke Ball Co?

<p>By conduct (C)</p> Signup and view all the answers

In which case did the distinction between an offer and an invitation to treat prove to be complex?

<p>Blackpool and Fylde Aero Club Ltd v Blackpool BC (A)</p> Signup and view all the answers

What case provides flexibility to courts in applying offer and acceptance rules?

<p>Blackpool and Fylde Aero Club Ltd v Blackpool BC (C)</p> Signup and view all the answers

In the context of shopkeeping, what can be the consequence of the unclear distinction between an offer and an invitation to treat?

<p>Concerns for shopkeepers' freedom (C)</p> Signup and view all the answers

According to the Boots rule, what is the legal principle regarding the display of goods in a store?

<p>The display of goods is always an invitation to treat (A)</p> Signup and view all the answers

What general rule applies to newspaper advertisements in terms of being an offer or an invitation to treat?

<p>Always treated as invitations to treat (C)</p> Signup and view all the answers

What does the auctioneer's invitation to bid represent in the context of auctions?

<p>An invitation to treat by the highest bidder (C)</p> Signup and view all the answers

What did the House of Lords hold regarding the conclusion of a contract in a specific case?

<p>No contract was concluded due to the lack of a definitive offer (B)</p> Signup and view all the answers

What can be challenging in determining when preliminary negotiations end and a definite offer is made?

<p>Varied judge's decisions depending on different cases (B)</p> Signup and view all the answers

Under the postal rule, when is an offer considered accepted?

<p>Upon posting by the offeree (D)</p> Signup and view all the answers

What is a criticism of the justification that the Post Office acts as an agent of the offeror when accepting a letter?

<p>The Post Office cannot contract on behalf of the offeror (B)</p> Signup and view all the answers

In which situations does the postal rule not apply?

<p>When the offer is made through telex or email (D)</p> Signup and view all the answers

What is required for an offer to be considered withdrawn under the postal rule?

<p>Bringing withdrawal notice to the attention of the offeree (C)</p> Signup and view all the answers

In unilateral contracts, how can acceptance be made without advance notification?

<p>By fully performing the requested act without notification (B)</p> Signup and view all the answers

What are exceptions to the postal rule?

<p>Instances of manifest inconvenience and absurdity (C)</p> Signup and view all the answers

In contract law, which of the following statements is true about acceptance?

<p>Acceptance must be communicated to the offeror to be valid. (C)</p> Signup and view all the answers

Which scenario is an exception to the general rule that acceptance must be communicated to the offeror?

<p>Acceptance by silence based on the parties' course of dealing. (A)</p> Signup and view all the answers

Which case supports the idea that if a party wishes to reject a term, they must make it explicit?

<p>Hyde v Wrench (C)</p> Signup and view all the answers

Which statement accurately reflects the rule of implied acceptance in contract law?

<p>Silence always equals acceptance unless explicitly rejected. (C)</p> Signup and view all the answers

In contract law, what does the case of Felthouse v Bindley establish regarding acceptance?

<p>The case introduces exceptions where silence can be inferred as acceptance. (B)</p> Signup and view all the answers

What is true about conduct as acceptance in contract law based on the provided text?

<p>If a party wishes to reject a term through conduct, they must make it explicit. (B)</p> Signup and view all the answers

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Study Notes

  • Conduct can serve as acceptance and create a contract between parties (Reveille Independent LLC v Anotech International)
  • For conduct to be acceptance, the offeree's intention to accept must be clear and unequivocal (Day Morris Associates v Voyce)
  • Acceptance extends to all terms of the offer once confirmed by the court (Arcadis Consulting (UK) Ltd v AMEC (BCS) Ltd)
  • If a party wishes to reject a term, they must make it explicit
  • Counter-offers introduce new terms, making the original offer incapable of acceptance (Hyde v Wrench)
  • General rule: acceptance must be communicated to the offeror and only validly communicated when brought to their attention (Entores)
  • Difficulties in determining when and where a contract is concluded with instantaneous communication
  • Ignorance of the offer does not prevent the offeree from being entitled to the money if they performed a socially useful act (Gibbons v Proctor and Tinn v Hoffman & Co)
  • Objective approach to agreement in contract law, subjective agreement not decisive
  • Offers may be accepted with a motive other than explicitly accepting, but the offer must be present in the offeree's mind (Williams v Carwardine)
  • Offeror's specific methods of acceptance must be clear and complied with (Manchester Diocesan Council for Education v Commercial and General Investments Ltd)
  • Acceptance by silence is generally not valid, but there are exceptions (Felthouse v Bindley, The Hannah Blumenthal)
  • The rule of implied acceptance assumes silence equals acceptance unless explicitly rejected (Felthouse v Bindley)
  • The rule of implied acceptance has faced criticism due to potential waiver of communication and the possibility of acceptance by inaction (Miller, 1972)
  • Silence as acceptance is not absolute and may be inferred based on the parties' course of dealing or the offeree's assumption that their silence has been effective (Entores)

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