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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?
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?
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?
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?
Which of the following statements is an example of an invitation to treat?
In regard to the rule 'An offer accepted is a contract', what implication does this have for both parties?
In regard to the rule 'An offer accepted is a contract', what implication does this have for both parties?
Which case addressed the concept that an offer must be clear to indicate the intention of the offeror?
Which case addressed the concept that an offer must be clear to indicate the intention of the offeror?
What happens when a counter-offer is made?
What happens when a counter-offer is made?
Which of the following scenarios would most likely not constitute an offer?
Which of the following scenarios would most likely not constitute an offer?
What establishes a counter-offer in the context of contract formation?
What establishes a counter-offer in the context of contract formation?
Which scenario best represents an invitation to treat?
Which scenario best represents an invitation to treat?
In a communication of acceptance, which characteristic is essential?
In a communication of acceptance, which characteristic is essential?
Which of the following statements is true regarding contractual obligations?
Which of the following statements is true regarding contractual obligations?
In the case of Muirhead and Turnbull v Dickson, what did the court focus on?
In the case of Muirhead and Turnbull v Dickson, what did the court focus on?
When assessing whether a contract has been concluded, what must be established?
When assessing whether a contract has been concluded, what must be established?
What typically characterizes the role of the pursuer in a contractual dispute?
What typically characterizes the role of the pursuer in a contractual dispute?
Which of the following describes a scenario where a contract has not been concluded?
Which of the following describes a scenario where a contract has not been concluded?
What is the general rule regarding the communication of acceptance in a contract?
What is the general rule regarding the communication of acceptance in a contract?
What does the Postal Acceptance Rule stipulate?
What does the Postal Acceptance Rule stipulate?
Which statement regarding revocation of an offer is true?
Which statement regarding revocation of an offer is true?
In Thomson v James, what principle was highlighted regarding acceptance and revocation?
In Thomson v James, what principle was highlighted regarding acceptance and revocation?
How can an acceptance be withdrawn once posted?
How can an acceptance be withdrawn once posted?
In which scenario does a promise become binding in law?
In which scenario does a promise become binding in law?
What distinguishes an offer from an invitation to treat?
What distinguishes an offer from an invitation to treat?
Which of the following is NOT a requirement for a valid contract?
Which of the following is NOT a requirement for a valid contract?
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.
