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?

The intention of being bound by acceptance without further negotiation Signup and view all the answers

What do most cases discussed in this chapter involve?

Allegations of breach of contract Signup and view all the answers

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

To reason forwards or backwards in deciding cases Signup and view all the answers

What is the general rule regarding invitation to tender?

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. Signup and view all the answers

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

Harvela Investments Ltd v Royal Trust Co of Canada Signup and view all the answers

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

Duty to act fairly and in good faith Signup and view all the answers

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

By conduct Signup and view all the answers

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

Blackpool and Fylde Aero Club Ltd v Blackpool BC Signup and view all the answers

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

Blackpool and Fylde Aero Club Ltd v Blackpool BC 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?

Concerns for shopkeepers' freedom Signup and view all the answers

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

The display of goods is always an invitation to treat Signup and view all the answers

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

Always treated as invitations to treat Signup and view all the answers

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

An invitation to treat by the highest bidder Signup and view all the answers

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

No contract was concluded due to the lack of a definitive offer Signup and view all the answers

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

Varied judge's decisions depending on different cases Signup and view all the answers

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

Upon posting by the offeree 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?

The Post Office cannot contract on behalf of the offeror Signup and view all the answers

In which situations does the postal rule not apply?

When the offer is made through telex or email Signup and view all the answers

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

Bringing withdrawal notice to the attention of the offeree Signup and view all the answers

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

By fully performing the requested act without notification Signup and view all the answers

What are exceptions to the postal rule?

Instances of manifest inconvenience and absurdity Signup and view all the answers

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

Acceptance must be communicated to the offeror to be valid. Signup and view all the answers

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

Acceptance by silence based on the parties' course of dealing. 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?

Hyde v Wrench Signup and view all the answers

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

Silence always equals acceptance unless explicitly rejected. Signup and view all the answers

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

The case introduces exceptions where silence can be inferred as acceptance. Signup and view all the answers

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

If a party wishes to reject a term through conduct, they must make it explicit. Signup and view all the answers

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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Description

Test your knowledge on the legal aspects of auctioneers' offers, identification of the highest bidder, and the debate on reserve prices. Explore scenarios where the courts reason backwards in cases related to offer and acceptance.