Podcast
Questions and Answers
Under what circumstance can the postal rule be excluded?
Under what circumstance can the postal rule be excluded?
- When the offer is made verbally
- When acceptance is communicated
- When the offer is not known
- When the parties intend acceptance to be effective upon receipt (correct)
Electronic communications are always considered received at the time they are sent.
Electronic communications are always considered received at the time they are sent.
False (B)
What must you know about an offer before you can accept it?
What must you know about an offer before you can accept it?
You must know about the offer itself.
The __________ rule can be excluded by circumstances that indicate the parties intended acceptance to be effective when communicated.
The __________ rule can be excluded by circumstances that indicate the parties intended acceptance to be effective when communicated.
Match the following case names with their relevant concepts:
Match the following case names with their relevant concepts:
What are the main requirements for a binding contract?
What are the main requirements for a binding contract?
An invitation to treat is considered a binding offer.
An invitation to treat is considered a binding offer.
What is the main difference between an offer and an invitation to treat?
What is the main difference between an offer and an invitation to treat?
The case ________ (1953) illustrates the concept of an invitation to treat.
The case ________ (1953) illustrates the concept of an invitation to treat.
Match the legal concepts with their correct definitions:
Match the legal concepts with their correct definitions:
Which of the following statements is TRUE regarding the intention in contracts?
Which of the following statements is TRUE regarding the intention in contracts?
In contract law, consideration is not necessary for a binding agreement.
In contract law, consideration is not necessary for a binding agreement.
Define 'consideration' in the context of contract law.
Define 'consideration' in the context of contract law.
What is required for agreements to be legally enforceable?
What is required for agreements to be legally enforceable?
Oral agreements cannot be enforceable in a court of law.
Oral agreements cannot be enforceable in a court of law.
What presumption applies to domestic agreements regarding intention to create legal relations?
What presumption applies to domestic agreements regarding intention to create legal relations?
In commercial agreements, there is a strong presumption of __________ intention to create legal relations.
In commercial agreements, there is a strong presumption of __________ intention to create legal relations.
Match the following cases with their relevant categories regarding intention to create legal relations:
Match the following cases with their relevant categories regarding intention to create legal relations:
What is a rebuttable presumption?
What is a rebuttable presumption?
Formal written agreements are the only way to establish intention to create legal relations.
Formal written agreements are the only way to establish intention to create legal relations.
What distinction do courts make when considering intention to create legal relations?
What distinction do courts make when considering intention to create legal relations?
Which case presumed no intention to create legal relations between a husband and wife?
Which case presumed no intention to create legal relations between a husband and wife?
In Merit v. Merit, the agreement regarding mortgage repayment was intended to be legally binding.
In Merit v. Merit, the agreement regarding mortgage repayment was intended to be legally binding.
What must be provided to rebut the presumption that commercial agreements create legal relations?
What must be provided to rebut the presumption that commercial agreements create legal relations?
The airline's ex gratia redundancy payment to a pilot in Edwards v. Skyways was held to be __________.
The airline's ex gratia redundancy payment to a pilot in Edwards v. Skyways was held to be __________.
Match the following cases with their key characteristics:
Match the following cases with their key characteristics:
What was the significance of Rose and Frank Co. v. Crompton Bros.?
What was the significance of Rose and Frank Co. v. Crompton Bros.?
In a commercial agreement, a presumption exists that the parties intend to create legal relations.
In a commercial agreement, a presumption exists that the parties intend to create legal relations.
What type of agreement was examined in Merit v. Merit?
What type of agreement was examined in Merit v. Merit?
Which of the following is NOT a way an offer can be terminated?
Which of the following is NOT a way an offer can be terminated?
An offered can be revoked once it has been accepted.
An offered can be revoked once it has been accepted.
Name the case that illustrates revocation of an offer.
Name the case that illustrates revocation of an offer.
Revocation of an offer must be effectively communicated to the ______.
Revocation of an offer must be effectively communicated to the ______.
Under what condition does an offer become irrevocable?
Under what condition does an offer become irrevocable?
Match the following terms with their definitions:
Match the following terms with their definitions:
An option to keep an offer open can lead to the offer becoming irrevocable.
An option to keep an offer open can lead to the offer becoming irrevocable.
What must happen for revocation to be valid?
What must happen for revocation to be valid?
When is a sale by auction considered complete?
When is a sale by auction considered complete?
In auctions, all bids placed before the hammer falls are considered binding contracts.
In auctions, all bids placed before the hammer falls are considered binding contracts.
What role does the auctioneer play in an auction?
What role does the auctioneer play in an auction?
In an auction with a reserve price, the auctioneer may not accept any bids that are below the ______.
In an auction with a reserve price, the auctioneer may not accept any bids that are below the ______.
What does Section 57(3) of the Sale of Goods Act refer to in the context of auctions?
What does Section 57(3) of the Sale of Goods Act refer to in the context of auctions?
Barry v. Davies is a relevant case law for understanding auction principles.
Barry v. Davies is a relevant case law for understanding auction principles.
What happens in an auction if the reserve price is not met?
What happens in an auction if the reserve price is not met?
Match the auction concepts with their correct definitions:
Match the auction concepts with their correct definitions:
What is required for a provisional agreement to operate until a full agreement is formalized?
What is required for a provisional agreement to operate until a full agreement is formalized?
In which situation is communication of acceptance not necessary?
In which situation is communication of acceptance not necessary?
Which of the following is true about an offeror's ability to impose acceptance through silence?
Which of the following is true about an offeror's ability to impose acceptance through silence?
Why is the case of Carlill v Carbolic Smoke Ball Co significant in contract law?
Why is the case of Carlill v Carbolic Smoke Ball Co significant in contract law?
How can an offeror communicate that acceptance is not required?
How can an offeror communicate that acceptance is not required?
What does the ruling in Dickinson v Dodds illustrate about withdrawal of offers?
What does the ruling in Dickinson v Dodds illustrate about withdrawal of offers?
Which scenario exemplifies an act of acceptance in a unilateral contract?
Which scenario exemplifies an act of acceptance in a unilateral contract?
What is irrelevant when determining if a contract exists after a provisional agreement?
What is irrelevant when determining if a contract exists after a provisional agreement?
What effect does introducing a new provision by the offeree have on the original offer?
What effect does introducing a new provision by the offeree have on the original offer?
What does a request for information do to the original offer?
What does a request for information do to the original offer?
When does the postal rule apply to an acceptance?
When does the postal rule apply to an acceptance?
Under what circumstance can silence be considered as acceptance?
Under what circumstance can silence be considered as acceptance?
What is required for the postal rule to be effective?
What is required for the postal rule to be effective?
In a unilateral contract, how is acceptance typically communicated?
In a unilateral contract, how is acceptance typically communicated?
In which case was it established that silence typically does not constitute acceptance?
In which case was it established that silence typically does not constitute acceptance?
What happens if an acceptance via email is received but not read until the next day?
What happens if an acceptance via email is received but not read until the next day?
Under what circumstance can an acceptance still be valid despite being lost in transit?
Under what circumstance can an acceptance still be valid despite being lost in transit?
What is true regarding the postal rule in contract law?
What is true regarding the postal rule in contract law?
What must a party demonstrate to create a legally binding contract?
What must a party demonstrate to create a legally binding contract?
Which of the following statements regarding acceptance is false?
Which of the following statements regarding acceptance is false?
Which scenario illustrates that an offeree's motive for acceptance is irrelevant?
Which scenario illustrates that an offeree's motive for acceptance is irrelevant?
What is the best definition of a counter-offer?
What is the best definition of a counter-offer?
In what situation might an agreement not be considered legally binding?
In what situation might an agreement not be considered legally binding?
Which case example best represents the exclusion of the postal rule through circumstances?
Which case example best represents the exclusion of the postal rule through circumstances?
When does a postal acceptance become valid if the postal rule is excluded?
When does a postal acceptance become valid if the postal rule is excluded?
Which phrase in an offer may imply the exclusion of the postal rule?
Which phrase in an offer may imply the exclusion of the postal rule?
What is essential for an acceptance by post to be considered effective?
What is essential for an acceptance by post to be considered effective?
What might imply that the postal rule does not apply, regarding how an offeror wants an acceptance communicated?
What might imply that the postal rule does not apply, regarding how an offeror wants an acceptance communicated?
Under what condition might retraction of a postal acceptance be permissible?
Under what condition might retraction of a postal acceptance be permissible?
What must an offeror do to ensure the postal rule applies to an acceptance?
What must an offeror do to ensure the postal rule applies to an acceptance?
What key element limits the postal rule's application as discussed?
What key element limits the postal rule's application as discussed?
Why might the offer's wording imply an exclusion of the postal rule?
Why might the offer's wording imply an exclusion of the postal rule?
What was the basis for the court's decision to hold the council liable to the Aero Club?
What was the basis for the court's decision to hold the council liable to the Aero Club?
Which aspect was highlighted by the court in the Blackpool & Fylde Aero Club case that might influence future decisions on tender offers?
Which aspect was highlighted by the court in the Blackpool & Fylde Aero Club case that might influence future decisions on tender offers?
What does the implied promise in the tender acceptance suggest regarding the submitted tenders?
What does the implied promise in the tender acceptance suggest regarding the submitted tenders?
Why is the decision in the Blackpool & Fylde Aero Club case considered controversial?
Why is the decision in the Blackpool & Fylde Aero Club case considered controversial?
What circumstance led the Aero Club to expect their tender would be considered?
What circumstance led the Aero Club to expect their tender would be considered?
What legal principle underlies the concept of an implied unilateral contract in the context of tender submissions?
What legal principle underlies the concept of an implied unilateral contract in the context of tender submissions?
What key factor might have influenced the Aero Club's argument for their tender's consideration?
What key factor might have influenced the Aero Club's argument for their tender's consideration?
Which question remains unclear about the court's decision in the Blackpool & Fylde Aero Club case?
Which question remains unclear about the court's decision in the Blackpool & Fylde Aero Club case?
What does the court consider regarding the timing of notice of revocation sent to a business?
What does the court consider regarding the timing of notice of revocation sent to a business?
In which case is it established that revocation can be communicated through a reliable third party?
In which case is it established that revocation can be communicated through a reliable third party?
What is required for a notice of revocation to be considered effective?
What is required for a notice of revocation to be considered effective?
What role does the concept of 'normal business-like manner' play in communication of notices?
What role does the concept of 'normal business-like manner' play in communication of notices?
According to the court's decision in The Brimnes, when is a notice considered communicated?
According to the court's decision in The Brimnes, when is a notice considered communicated?
What is key to the reliability of a third party in communicating revocation?
What is key to the reliability of a third party in communicating revocation?
How does the court view the offeree's failure to notice a revocation?
How does the court view the offeree's failure to notice a revocation?
What must be considered regarding the context of communication for revocation?
What must be considered regarding the context of communication for revocation?
What must have been understood by the parties in Lampleigh v Brathwait for the promise to be enforceable?
What must have been understood by the parties in Lampleigh v Brathwait for the promise to be enforceable?
In the case of Re Casey’s Patents, what did the court determine about Casey's entitlement to payment?
In the case of Re Casey’s Patents, what did the court determine about Casey's entitlement to payment?
What is generally true about past consideration in contract law as illustrated by Roscorla v Thomas?
What is generally true about past consideration in contract law as illustrated by Roscorla v Thomas?
What legal requirement must be satisfied for a promise to be enforceable, as highlighted in the concepts discussed?
What legal requirement must be satisfied for a promise to be enforceable, as highlighted in the concepts discussed?
What does the case of Lampleigh v Brathwait illustrate about the concept of consideration in contractual promises?
What does the case of Lampleigh v Brathwait illustrate about the concept of consideration in contractual promises?
What legal concept is relevant when a subcontractor secures an agreement by taking unfair advantage of a contractor's difficulties?
What legal concept is relevant when a subcontractor secures an agreement by taking unfair advantage of a contractor's difficulties?
Under what condition can a promise for additional payment become legally binding?
Under what condition can a promise for additional payment become legally binding?
Which of the following must occur before the additional payment becomes consideration for the contractor's promise?
Which of the following must occur before the additional payment becomes consideration for the contractor's promise?
What best describes a situation where a contractor agrees to pay more due to doubts about a subcontractor’s performance?
What best describes a situation where a contractor agrees to pay more due to doubts about a subcontractor’s performance?
How can a contractor avoid liability under a compensation clause when dealing with a subcontractor?
How can a contractor avoid liability under a compensation clause when dealing with a subcontractor?
What is considered a disbenefit in the context of securing a contractor's promise?
What is considered a disbenefit in the context of securing a contractor's promise?
Which of the following statements accurately reflects a situation of economic duress?
Which of the following statements accurately reflects a situation of economic duress?
What must be true for a benefit obtained by the contractor to qualify as consideration?
What must be true for a benefit obtained by the contractor to qualify as consideration?
What is necessary for a third party to enforce a contract term?
What is necessary for a third party to enforce a contract term?
Which statement defines the concept of agency?
Which statement defines the concept of agency?
What is an example of how agency is created?
What is an example of how agency is created?
Under what condition can a third party not enforce a contract term?
Under what condition can a third party not enforce a contract term?
Which of the following is NOT typically considered an agent?
Which of the following is NOT typically considered an agent?
What role do gift receipts play in consumer transactions?
What role do gift receipts play in consumer transactions?
What must an agent have to bind a principal in a contract?
What must an agent have to bind a principal in a contract?
Why might the term 'agent' differ in commercial use compared to legal definitions?
Why might the term 'agent' differ in commercial use compared to legal definitions?
What is generally considered sufficient consideration for a promise of more money in a contractual obligation?
What is generally considered sufficient consideration for a promise of more money in a contractual obligation?
Which statement accurately reflects the principle of promissory estoppel?
Which statement accurately reflects the principle of promissory estoppel?
What can occur if there is economic duress in a contractual promise?
What can occur if there is economic duress in a contractual promise?
Which of the following statements correctly describes the role of an agent with express authority?
Which of the following statements correctly describes the role of an agent with express authority?
What must be true for a principal to be estopped from denying an agent's authority?
What must be true for a principal to be estopped from denying an agent's authority?
In the case of agency, if an agent has actual authority and enters into a contract, what happens if the agent's authority is later terminated?
In the case of agency, if an agent has actual authority and enters into a contract, what happens if the agent's authority is later terminated?
Which of the following statements is incorrect regarding payment of a lesser sum on the due date?
Which of the following statements is incorrect regarding payment of a lesser sum on the due date?
What is the legal consequence if a party seeks equitable relief but does not have clean hands?
What is the legal consequence if a party seeks equitable relief but does not have clean hands?
What is the primary condition for a party to use promissory estoppel?
What is the primary condition for a party to use promissory estoppel?
In the case of Combe v Combe, what was established about promissory estoppel?
In the case of Combe v Combe, what was established about promissory estoppel?
What does it mean for a promise to not be freely given as established in D&C Builders v Rees?
What does it mean for a promise to not be freely given as established in D&C Builders v Rees?
Which of the following best describes the role of inequity in promissory estoppel?
Which of the following best describes the role of inequity in promissory estoppel?
What must occur for a party to successfully claim that it would be inequitable for the promisor to withdraw their promise?
What must occur for a party to successfully claim that it would be inequitable for the promisor to withdraw their promise?
In the context of promissory estoppel, how is the concept of fairness evaluated?
In the context of promissory estoppel, how is the concept of fairness evaluated?
What key principle does the case of D&C Builders v Rees illustrate in relation to promissory estoppel?
What key principle does the case of D&C Builders v Rees illustrate in relation to promissory estoppel?
What is a consequence of a party proving that pursuing a promissory estoppel would be inequitable?
What is a consequence of a party proving that pursuing a promissory estoppel would be inequitable?
What is generally considered insufficient consideration in contract law?
What is generally considered insufficient consideration in contract law?
Which statement about consideration in contract law is true?
Which statement about consideration in contract law is true?
What does the doctrine of promissory estoppel allow a party to do?
What does the doctrine of promissory estoppel allow a party to do?
When is past consideration generally considered valid?
When is past consideration generally considered valid?
What is one crucial aspect of consideration highlighted by the case of Chappell v Nestlé?
What is one crucial aspect of consideration highlighted by the case of Chappell v Nestlé?
Which of the following statements about contractual obligations is true?
Which of the following statements about contractual obligations is true?
In which scenario is past consideration deemed insufficient?
In which scenario is past consideration deemed insufficient?
What does the concept of 'consideration must be sufficient' imply in contract law?
What does the concept of 'consideration must be sufficient' imply in contract law?
Flashcards
What is an auction?
What is an auction?
An auction is a process where goods or services are sold to the highest bidder.
Offer and Acceptance in Auctions
Offer and Acceptance in Auctions
In an auction, bids made before the hammer falls are offers that can be withdrawn. The highest bid at the point the hammer falls constitutes the acceptance.
Role of Auctioneer
Role of Auctioneer
The auctioneer acts as an agent for the seller, meaning they are authorized to sell the goods on behalf of the seller.
Reserve Price
Reserve Price
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Auctions with Reserve
Auctions with Reserve
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Auctions without Reserve
Auctions without Reserve
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Case Law on Auctions
Case Law on Auctions
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Legal Provisions on Auctions
Legal Provisions on Auctions
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Binding Contract Requirements
Binding Contract Requirements
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What is an Offer?
What is an Offer?
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What is Acceptance?
What is Acceptance?
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What is Consideration?
What is Consideration?
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What is Invitation To Treat?
What is Invitation To Treat?
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What is an Implied Contract?
What is an Implied Contract?
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Intention to Create Legal Relations
Intention to Create Legal Relations
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Offer vs. Invitation to Treat
Offer vs. Invitation to Treat
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Revocation of Offer
Revocation of Offer
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Revocation Without Consideration
Revocation Without Consideration
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Irrevocable Offer
Irrevocable Offer
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Option Contract
Option Contract
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Communication of Revocation
Communication of Revocation
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Rejection of Offer
Rejection of Offer
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Lapse of Time
Lapse of Time
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Time Limit for Acceptance
Time Limit for Acceptance
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Postal Rule
Postal Rule
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Postal Rule Exception - Express Exclusion
Postal Rule Exception - Express Exclusion
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Postal Rule Exception - Implied Exclusion
Postal Rule Exception - Implied Exclusion
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Knowledge of Offer
Knowledge of Offer
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Electronic Communication and Acceptance Timing
Electronic Communication and Acceptance Timing
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Commercial Agreements
Commercial Agreements
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Domestic Agreements
Domestic Agreements
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Merit v. Merit (1970)
Merit v. Merit (1970)
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Edwards v. Skyways (1964)
Edwards v. Skyways (1964)
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Rose and Frank Co. v. Crompton Bros. (1924)
Rose and Frank Co. v. Crompton Bros. (1924)
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Belfour v. Belfour (1919)
Belfour v. Belfour (1919)
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Rebuttable Presumption
Rebuttable Presumption
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Rebutting the Presumption (Domestic)
Rebutting the Presumption (Domestic)
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Rebutting the Presumption (Commercial)
Rebutting the Presumption (Commercial)
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Edwards v. Skyways
Edwards v. Skyways
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Revocation by Reliable Third Party
Revocation by Reliable Third Party
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Notice Received, Not Read
Notice Received, Not Read
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Notice Communication Timing
Notice Communication Timing
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Dickinson v Dodds (1876)
Dickinson v Dodds (1876)
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Reasonableness in Revocation
Reasonableness in Revocation
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Revocation During Business Hours
Revocation During Business Hours
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Revocation Communication Source
Revocation Communication Source
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Communication of Acceptance
Communication of Acceptance
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Waiving Communication of Acceptance
Waiving Communication of Acceptance
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Unilateral Contract and Acceptance
Unilateral Contract and Acceptance
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Silence as Acceptance
Silence as Acceptance
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Provisional Agreement and Contract Formation
Provisional Agreement and Contract Formation
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Formalities of Contracts
Formalities of Contracts
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Postal Rule and Acceptance
Postal Rule and Acceptance
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Exceptions to the Postal Rule
Exceptions to the Postal Rule
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What is the postal rule?
What is the postal rule?
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How can the postal rule be excluded?
How can the postal rule be excluded?
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Can the postal rule be impliedly excluded?
Can the postal rule be impliedly excluded?
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What happens if the postal rule is excluded but the post is still used?
What happens if the postal rule is excluded but the post is still used?
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What should the offeror do to avoid the postal rule?
What should the offeror do to avoid the postal rule?
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Can a postal acceptance be retracted?
Can a postal acceptance be retracted?
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What is the condition for a valid retraction of postal acceptance?
What is the condition for a valid retraction of postal acceptance?
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When is retraction of postal acceptance ineffective?
When is retraction of postal acceptance ineffective?
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Implied Promise to Consider Tenders
Implied Promise to Consider Tenders
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Lapse of Time in Offers
Lapse of Time in Offers
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Acceptance in Auctions
Acceptance in Auctions
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Reserve Price in Auctions
Reserve Price in Auctions
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When does the Postal Rule apply?
When does the Postal Rule apply?
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Can the Postal Rule be excluded?
Can the Postal Rule be excluded?
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What happens if the acceptance letter is lost or delayed?
What happens if the acceptance letter is lost or delayed?
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Is knowledge of the offer required for acceptance?
Is knowledge of the offer required for acceptance?
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Does the motive for acceptance matter?
Does the motive for acceptance matter?
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What happens if new terms are introduced during acceptance?
What happens if new terms are introduced during acceptance?
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What is intention to create legal relations?
What is intention to create legal relations?
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What is a counteroffer?
What is a counteroffer?
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Request for information vs. counteroffer
Request for information vs. counteroffer
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Communicating Acceptance
Communicating Acceptance
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Acceptance in unilateral contracts
Acceptance in unilateral contracts
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Acceptance in electronic contracts
Acceptance in electronic contracts
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Agreement: Offer and Acceptance
Agreement: Offer and Acceptance
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Past Consideration
Past Consideration
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Past Consideration Exception
Past Consideration Exception
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Roscorla v Thomas (1842)
Roscorla v Thomas (1842)
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Re Casey's Patents (1912)
Re Casey's Patents (1912)
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Re Casey's Patents (1912) - Key Takeaway
Re Casey's Patents (1912) - Key Takeaway
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Third Party Enforcement of Contract Term
Third Party Enforcement of Contract Term
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What is Agency?
What is Agency?
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Actual Authority in Agency
Actual Authority in Agency
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Authority in Agency Contracts
Authority in Agency Contracts
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Estate Agents and Agency
Estate Agents and Agency
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Gift Receipts and Contractual Rights
Gift Receipts and Contractual Rights
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Third Party Enforcement of Exemption Clauses
Third Party Enforcement of Exemption Clauses
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Contracts (Rights of Third Parties) Act 1999
Contracts (Rights of Third Parties) Act 1999
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What is promissory estoppel?
What is promissory estoppel?
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Why can't promissory estoppel be used to start a lawsuit?
Why can't promissory estoppel be used to start a lawsuit?
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When can someone go back on their promise under promissory estoppel?
When can someone go back on their promise under promissory estoppel?
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How does equity play a role in promissory estoppel?
How does equity play a role in promissory estoppel?
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What must the promisee show to use promissory estoppel?
What must the promisee show to use promissory estoppel?
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Does the promisee have to suffer a loss to use promissory estoppel?
Does the promisee have to suffer a loss to use promissory estoppel?
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Practical benefit as consideration
Practical benefit as consideration
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Payment of a lesser sum
Payment of a lesser sum
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Promissory estoppel: shield, not sword
Promissory estoppel: shield, not sword
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Express authority and liability
Express authority and liability
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Apparent authority
Apparent authority
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Termination of agency
Termination of agency
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Equity in promissory estoppel
Equity in promissory estoppel
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Essentials of a valid contract
Essentials of a valid contract
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What is economic duress?
What is economic duress?
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How does economic duress apply to contracts?
How does economic duress apply to contracts?
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What is practical benefit in contract law?
What is practical benefit in contract law?
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What are the elements of the practical benefit doctrine?
What are the elements of the practical benefit doctrine?
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How can practical benefit be established in a case?
How can practical benefit be established in a case?
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How does economic duress impact the validity of an agreement?
How does economic duress impact the validity of an agreement?
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How do the practical benefit doctrine and economic duress relate?
How do the practical benefit doctrine and economic duress relate?
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What are the key cases that demonstrate practical benefit?
What are the key cases that demonstrate practical benefit?
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Must consideration be sufficient and adequate?
Must consideration be sufficient and adequate?
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Is past consideration generally sufficient?
Is past consideration generally sufficient?
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Practical Benefit: Promising More Money
Practical Benefit: Promising More Money
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Paying Less than Due: Is it Good Consideration?
Paying Less than Due: Is it Good Consideration?
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What is the purpose of promissory estoppel?
What is the purpose of promissory estoppel?
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Must the relying party act equitably in promissory estoppel?
Must the relying party act equitably in promissory estoppel?
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Study Notes
Agreement and Contractual Intention
- A binding contract requires agreement, consideration, and intention for legal consequences.
- Agreement is based on offer and acceptance.
- An offer is a promise to be bound by specific terms, communicated via various methods.
- An invitation to treat invites negotiations, it is not a binding offer.
Offer and Acceptance
- Offers can be communicated via letters, emails, or conduct.
- Intention is determined by the parties or courts.
- Items displayed in stores are invitations to treat until payment, they are not offers themselves.
- Advertisements are generally invitations to treat.
- Advertisements offering rewards are considered offers in specific situations, especially in unilateral contracts.
Invitation to Treat vs. Offer
- Case examples illustrate that displayed items in stores aren't offers.
- Advertisements are generally invitations to treat.
- Unilateral contracts, where only one party makes a promise, are an exception.
Case Examples
- Smith v. Hughes: Relevant case law regarding contract formation.
- Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953): Items displayed in stores are invitations to treat.
- Fisher v. Bell (1961) and Partridge v. Crittenden (1968): Demonstrates that advertisements are generally invitations to treat.
- Carlill v Carbolic Smoke Ball Company: Example of a unilateral contract where the advertisement could be interpreted as an offer.
- Williams v Carwardine: Example of a unilateral contract where the advertisement could be interpreted as an offer.
- Barry v. Davies (2000) is a relevant case regarding auctions.
Advertisements as Offers (Exception)
- Advertisements can be considered offers if they contain specific terms and are directed at a particular person.
Unilateral Contracts
- A unilateral contract involves a promise in exchange for an act.
- Williams v. Carwardine (1833) and Carlyle v. Carbolic Smoke Ball Company (1893) are examples of unilateral contracts where ads are taken as offers.
Auction
-Auctions follow specific rules regarding offers and acceptance.
- A sale by auction is complete when the auctioneer's hammer falls.
- A reserve price in an auction is a minimum price the auctioneer will accept.
- Auctions without reserve are where the highest bid will create a contract.
- Barry v. Davies (2000) is a relevant case regarding auctions.
Tenders
- Tenders involve third-party contractors hired by a business.
- Businesses request tenders frequently.
Tender Acceptance and Contract Formation
- Acceptance of a tender (often in business proposals).
- Exceptions exist where an invitation to tender does not constitute an offer, such as the case Harvela Investments Ltd v. Royal Trust Company of Canada.
- Unilateral contracts related to tenders are a possibility.
- Blackpool v. Flight Aero Club: An implied promise to consider all tenders in a timely way. This is an example.
Termination of Offer
- Offers can be terminated through revocation, rejection, or lapse of time.
- Offers can be revoked before acceptance.
- An exception might be if consideration is given to keep the offer open. (e.g.: Option contract).
- Revocation must be effectively communicated to the offeree to be valid.
Revocation
- Advertising an offer can be revoked as a form of communication.
- Emails and third-party communication regarding revocations.
Rejection
- A rejection of an offer.
- A counteroffer terminates the original offer and makes a new one.
Lapse of Time
- An offer lapses after a reasonable or prescribed time period.
Acceptance of an Offer
- Acceptance must be unconditional, complete, and communicated to be valid.
Battle of the Forms
- The last set of terms presented and accepted in a contract typically prevails when conflicting terms arise.
Jurisdiction and Terms
- Previously acknowledged terms can resolve conflicting contract terms.
Communication of Acceptance
- Acceptance must be communicated, except in unilateral contracts.
Intention to Create Legal Relations
- Courts require intention for agreements to be legally enforceable.
- Formal (written) agreements are not required, and oral agreements are equally enforceable.
- Domestic agreements: Courts presume no intention to create legal relations.
- Commercial agreements: Courts presume an intention to create legal relations, unless otherwise proven.
Cases
- Belfour v. Belfour: Example of a domestic court case reflecting legal presumption of no intention to contract.
- Merit v. Merit: Example of a domestic arrangement presumed not to have legally enforceable contract intent.
- Edwards v. Skyways: Illustrative case of commercial contracts with presumed intent to have a legally binding contract.
- Rose & Frank Co. v Crompton Bros: Rebuttal to the normal presumption around commercial contracts.
- Entores v Miles Far East Corp: Communication of acceptance.
- Adams v. Lindsell: Postal rule relating to acceptance of an offer.
- Hyde v Wrench: Counter-offer terminating original offer.
- Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council: Implied duty, a promise to consider tenders..
- Shuey v United States: Advertising revocation of offers.
- Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelgesellschaft 1983: Communication of Acceptance in business context.
- High Trees House: Promissory estoppel.
- Central London Property Trust v High Trees House: Promissory estoppel.
- Foakes v Beer: Part payment of debt.
- Pinnel's Case: Part payment of debt.
- Williams v Roffey Bros & Nicholls (Contractors) Ltd: Consideration for existing contractual duty.
- Stilk v Myrick: Performance of existing contractual duty not sufficient consideration on own.
- Hartley v Ponsonby: Performance of existing contractual duty, exceeding the duty, would be consideration.
- Lampleigh v Brathwait: Exception to past consideration not being considered.
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Description
This quiz explores the essential elements of contract law, focusing on agreement, consideration, and contractual intention. Participants will analyze concepts like offers, invitations to treat, and the distinction between advertisements and binding offers through real-life examples. Test your understanding of how contracts are formed and the legal implications involved.
