Contract Formation and Remedies Quiz

<p>The bidder's bid is considered an offer.</p> Signup and view all the answers

<p>It is used when it is difficult to analyze the transaction in terms of offer and acceptance.</p> Signup and view all the answers

<p>Accept the offer, reject the offer, make a counter-offer, or request further information.</p> Signup and view all the answers

<p>In a standard form contract, the terms and conditions are set by one party and the other party has no opportunity to negotiate or amend them, while in a negotiated contract the terms are mutually agreed upon.</p> Signup and view all the answers

<p>Economic theory influencing contract law</p> Signup and view all the answers

<p>Making an offer</p> Signup and view all the answers

<p>An offer can create a contract if accepted, while a 'puff' is so far-fetched that no reasonable person would believe it.</p> Signup and view all the answers

<p>An offer is a definite promise to be bound on certain terms, which can be accepted to form a contract. In contrast, an invitation to treat is merely an invitation for others to make offers, which the invitor can then choose to accept or reject. An example of an offer is the Carbolic Smoke Ball Company's advertisement offering £100 to anyone who contracted influenza after using their product. An example of an invitation to treat is a display of goods in a shop window, which invites customers to make offers to purchase the items.</p> Signup and view all the answers

<p>The 'global' or 'objective' approach is used by New Zealand courts when it is difficult or impossible to analyze a transaction in terms of offer and acceptance. Under this approach, the court will consider the dealings as a whole from the perspective of reasonable persons on both sides, and determine whether a concluded bargain has been reached. The key principle established in Boulder Consolidated Ltd v Tangaere is that the court will adopt this 'global' approach to determine whether a contract has been formed, rather than rigidly applying the traditional offer and acceptance analysis.</p> Signup and view all the answers

<p>In Harvey v Facey, the Privy Council held that the second telegram was not an offer, but rather an indication of the minimum price if the defendants ultimately resolved to sell. The third telegram was therefore not an acceptance. This case established the legal principle that the supply of information, such as a price quote, is not the same as making an offer. The distinction between an offer and the supply of information is crucial, as only an offer can be accepted to form a binding contract.</p> Signup and view all the answers

<p>The three main options available to an offeree upon receiving an offer are: 1) Accept the offer, which will form a binding contract; 2) Reject the offer, terminating the offeror's power of acceptance; or 3) Make a counter-offer, which serves as a rejection of the original offer and presents a new offer for the offeror to consider. The legal significance of each option is that acceptance will form a contract, rejection will end the offer, and a counter-offer will create a new offer that the original offeror can then choose to accept or reject.</p> Signup and view all the answers

<p>In Partridge v Crittenden, the court held that the advertisement was not an offer, but rather an 'invitation to treat'. In Carlill v Carbolic Smoke Ball Co, the court found that the advertisement was a valid offer that could be accepted by performance, creating a unilateral contract. A unilateral contract is one where the offer is made to the public or a group, and can only be accepted by the offeree performing the requested act, rather than through a promise. The key distinction between these cases is that Partridge v Crittenden involved an invitation to treat, while Carlill v Carbolic Smoke Ball Co established a unilateral offer that could be accepted by performance.</p> Signup and view all the answers

<p>In the context of auctions, the phrase 'without reserve' indicates that the auction is being held without a minimum bid or reserve price, and the item will be sold to the highest bidder regardless of the price. The legal significance of this phrase is that it creates a binding contract between the auctioneer and the highest bidder, as established in the case of Barry v Davies. In that case, the court held that the auctioneer's use of the phrase 'without reserve' was a representation that the item would be sold to the highest bidder, which the auctioneer was then legally obligated to honor.</p> Signup and view all the answers

<p>The key principle is that parties should be free to enter into contracts on whatever terms they choose, without undue interference from the law.</p> Signup and view all the answers

<p>The 'conscience of the law' refers to the idea that the law should intervene in contractual dealings to prevent unconscionable conduct or unfair exploitation of one party by another.</p> Signup and view all the answers

<p>The essential elements are: 1) an offer, 2) an acceptance of that offer, 3) an intention to create legal relations, and 4) consideration (something of value exchanged).</p> Signup and view all the answers

<p>Courts apply an objective test - whether a reasonable person would interpret the statement as a serious intention to be bound, assuming the offer is accepted. Exaggerated or vague statements that no reasonable person would rely on are treated as mere puffery.</p> Signup and view all the answers

<p>This case established that a unilateral offer to the world at large can constitute a valid offer, capable of being accepted by anyone who fulfills the terms of the offer.</p> Signup and view all the answers

<p>A standard form contract is one where the terms are set in advance by one party, and the other party has little or no opportunity to negotiate those terms. This can raise concerns about unfairness or inequality of bargaining power, as the party with less leverage may have to accept onerous terms on a 'take it or leave it' basis.</p> Signup and view all the answers