Contract Law: Consensus and Disputes

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Questions and Answers

In the case of Mathieson Gee (Ayrshire) LTD v Quigley, why was there no consensus between the parties?

The offeree did not provide any performance. (correct)

The parties misunderstood each other's intentions.

The offer was made verbally and not in writing.

The terms of the offer were not sufficiently clear.

What characterizes a statement as an offer in contract law?

It is communicated to multiple parties simultaneously.

It requires a written form to be valid.

It relates to goods and services available for sale.

It indicates the intention of the offeror to be bound by acceptance. (correct)

What is the key distinction between an offer and an invitation to treat?

Invitations to treat can lead to multiple offers.

An invitation to treat is always made by the buyer.

An offer can be accepted to form a contract, while an invitation to treat cannot. (correct)

Offers are legally binding, whereas invitations to treat are not.

Which of the following statements is an example of an invitation to treat?

The lowest price I’ll take is £900. Signup and view all the answers

In regard to the rule 'An offer accepted is a contract', what implication does this have for both parties?

The offeror must fulfill the terms of the contract upon acceptance. Signup and view all the answers

Which case addressed the concept that an offer must be clear to indicate the intention of the offeror?

Carlill v Carbolic Smokeball Co Signup and view all the answers

What happens when a counter-offer is made?

The original offer is rejected and a new offer is created. Signup and view all the answers

Which of the following scenarios would most likely not constitute an offer?

A clearance sale advertisement for discounts. Signup and view all the answers

What establishes a counter-offer in the context of contract formation?

A proposal made in response to an original offer. Signup and view all the answers

Which scenario best represents an invitation to treat?

A restaurant menu displaying prices for meals. Signup and view all the answers

In a communication of acceptance, which characteristic is essential?

The acceptance must match the original offer exactly. Signup and view all the answers

Which of the following statements is true regarding contractual obligations?

Legally binding agreements can be established through actions or conduct. Signup and view all the answers

In the case of Muirhead and Turnbull v Dickson, what did the court focus on?

The specific wording used in the contract. Signup and view all the answers

When assessing whether a contract has been concluded, what must be established?

The consensus on the nature and subject of the contract. Signup and view all the answers

What typically characterizes the role of the pursuer in a contractual dispute?

They initiate the legal action to enforce rights. Signup and view all the answers

Which of the following describes a scenario where a contract has not been concluded?

An offer is rejected, and a counter-offer is proposed. Signup and view all the answers

What is the general rule regarding the communication of acceptance in a contract?

Acceptance is effective on receipt. Signup and view all the answers

What does the Postal Acceptance Rule stipulate?

Acceptance is effective upon posting. Signup and view all the answers

Which statement regarding revocation of an offer is true?

Revocation must be received to be effective. Signup and view all the answers

In Thomson v James, what principle was highlighted regarding acceptance and revocation?

Revocation can occur any time before the acceptance is received. Signup and view all the answers

How can an acceptance be withdrawn once posted?

If the withdrawal letter reaches the offeror at the same time. Signup and view all the answers

In which scenario does a promise become binding in law?

When it is written and signed by the promisor. Signup and view all the answers

What distinguishes an offer from an invitation to treat?

An offer is a definite proposal while an invitation to treat is a mere request for offers. Signup and view all the answers

Which of the following is NOT a requirement for a valid contract?

Written documentation. Signup and view all the answers

Study Notes

Contractual Disputes

Courts uphold rights and enforce duties, providing a basis for negotiating.
The party raising an action is the pursuer, the other party is the defender.

Has a contract been concluded?

Sometimes the answer is obvious and sometimes it is arguable.
Agreement on the same thing, consensus in idem, is essential for a contract.
This includes agreement on the nature of the contract, the subject(s) of the contract, and the price or consideration.

Consensus?

Consensus is viewed objectively.
Muirhead and Turnbull v Dickson (1905): Courts look at what was actually said, not what parties thought they said or intended to say.
Mathieson Gee (Ayrshire) LTD v Quigley 1952 SC (HL) 38: No consensus can equal no contract. Even with performance, consensus may be lacking.

Conclusion: passing the stage of negotiation

"An offer accepted is a contract."
The party making the offer is the offeror.
The party to whom the offer is made is the offeree.

When is a statement an offer?

When its terms are sufficiently clear to indicate the intention of the offeror to be bound in contract on acceptance by the offeree.

Invitation to Treat?

An invitation to treat is not an offer.
It is not possible to accept an invitation to treat and conclude a contract.

Communication of Acceptance

Communication of an acceptance is essential.
General rule: acceptance is effective on receipt.
Exception: The postal acceptance rule where offer and acceptance are conducted by post.

The Postal Acceptance Rule

Acceptance is effective on posting, but revocation of offer must be received to be effective.
The postal acceptance rule only applies to acceptances.
Thomson v James (1855): A revocation of offer must be actually communicated before it takes effect.
Dunlop v Higgins (1848): An acceptance can be withdrawn if the letter of withdrawal reaches the offeror before or at the same time as the letter of acceptance.
It is best to state that your offer can only be accepted by actual communication to avoid the postal acceptance rule.

Contract v Promise - What is the difference?

Consider these questions:
- Is it binding in law?
- Does it need to be in writing?
- Does there need to be an agreement?
- Does there need to be an acceptance?
- Does it need to be communicated?
- Can it be revoked?

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Description

This quiz explores key concepts in contract law, focusing on contractual disputes, the necessity of consensus for contract formation, and the roles of parties involved. Utilizing landmark cases, you will assess your understanding of how courts interpret agreements and enforce duties.