Podcast
Questions and Answers
Which statement describes the Postal Rule in contract law?
Which statement describes the Postal Rule in contract law?
- Acceptance is effective at the moment of posting the letter. (correct)
- The acceptance must always be communicated in person.
- There is no need to communicate acceptance.
- Acceptance is effective when the offeror receives the communication.
What is necessary for an offer to be valid?
What is necessary for an offer to be valid?
- It must be accepted immediately
- It must be in writing
- It must specify a specific price
- It must be communicated clearly to the offeree (correct)
Under the Postal Rule, there are no conditions that must be met for it to apply.
Under the Postal Rule, there are no conditions that must be met for it to apply.
False (B)
A counteroffer automatically destroys the original offer.
A counteroffer automatically destroys the original offer.
What is required for a contract to be considered binding?
What is required for a contract to be considered binding?
In contract law, _____ needs to be communicated and received for acceptance to be valid.
In contract law, _____ needs to be communicated and received for acceptance to be valid.
What type of response could be considered a mere request for information instead of a counteroffer?
What type of response could be considered a mere request for information instead of a counteroffer?
What was the consequence of Ruby's letter not being received?
What was the consequence of Ruby's letter not being received?
An offer can be revoked at any time before it has been ______________.
An offer can be revoked at any time before it has been ______________.
Match the following cases to their significance in contract law:
Match the following cases to their significance in contract law:
Match the following cases with their relevance to contract law:
Match the following cases with their relevance to contract law:
What is required for the revocation of an offer to be effective?
What is required for the revocation of an offer to be effective?
The Sale of Goods Act only applies to contracts made in writing.
The Sale of Goods Act only applies to contracts made in writing.
What was the cheapest quotation for a skip Ruby found after her acceptance letter did not reach Tony?
What was the cheapest quotation for a skip Ruby found after her acceptance letter did not reach Tony?
An acceptance by email is considered a valid form of acceptance under contract law.
An acceptance by email is considered a valid form of acceptance under contract law.
What is the significance of an acceptance being 'subject to' a condition?
What is the significance of an acceptance being 'subject to' a condition?
What is the general rule regarding acceptance in contract law?
What is the general rule regarding acceptance in contract law?
The postal rule states that acceptance is effective when it is communicated, regardless of whether it is received.
The postal rule states that acceptance is effective when it is communicated, regardless of whether it is received.
Name one case that illustrates the principle that acceptance must be communicated.
Name one case that illustrates the principle that acceptance must be communicated.
In auction contracts, a bid constitutes an _____ to treat, and the auctioneer's acceptance is when they knock down the hammer.
In auction contracts, a bid constitutes an _____ to treat, and the auctioneer's acceptance is when they knock down the hammer.
Which of the following statements about the Sale of Goods Act is incorrect?
Which of the following statements about the Sale of Goods Act is incorrect?
Legal authority must always be cited when stating legal rules or principles in a problem question.
Legal authority must always be cited when stating legal rules or principles in a problem question.
Match the following court cases with their relevance in contract law:
Match the following court cases with their relevance in contract law:
The necessity to apply general rules before discussing _____ is crucial in legal arguments.
The necessity to apply general rules before discussing _____ is crucial in legal arguments.
What must be done if two possible answers or interpretations exist in a legal argument?
What must be done if two possible answers or interpretations exist in a legal argument?
Study Notes
Legal Presumption to Create Legal Relations
- In a commercial context, there is a legal presumption to create legal relations. This can be seen in the case of Edwards and Skyways.
- If a commercial agreement exists and there is no evidence to the contrary, it is presumed that the parties intended to create a legally binding agreement.
Agreement
- In this case, the issue is whether there was a legally binding agreement between Ruby and Tony's Skips.
- Ruby provided a clear acceptance to Tony's offer by posting a letter on April 16th.
- Ruby's inquiry about the earliest available date posed a request for information rather than a contingent condition destroying the offer.
- The general rule states that acceptance must be communicated and received, as outlined in Entores v Miles Far East.
- However, the postal rule is an exception to this general rule:
- Only applies to acceptances.
- It is reasonable for acceptance to be posted.
- The acceptance is legally accepted at the time of postage.
- This creates a binding contract at the point of the letter's posting.
Application of the Postal Rule
- Determine if it is reasonable for acceptance to be posted based on specific information:
- First-class mail used.
- The time of posting.
- Ruby's awareness of any delays.
Offer and Acceptance Analysis
- Warmhomes offers to install heating with a quotation of £3,000, which constitutes a valid offer.
- Ruby's response may be considered a counteroffer (Hyde v Wrench) or an inquiry (Stevenson v McLean).
- An inquiry usually does not destroy the original offer.
- It depends on the language used to determine if it's a contingency or a mere request for information.
- In this instance, Ruby's response could be considered a contingency if it was worded as "I would only be prepared to pay..."
- A new offer is created by the offeror on April 19th at 3:00 PM, after Ruby's original response.
- Ruby accepts the offer via email on April 22nd at 4:30 PM.
- Her question about the possibility of starting work by the end of May is an inquiry and not a counteroffer.
- This does not negate her acceptance because it is a mere request for information.
- It is important to note that email communication allows for immediate communication and eliminates issues related to potential delays.
Revocation of Offer
- An offer can be revoked by the offeror until it has been accepted.
- Revocation must be communicated.
- Tony left a message on Ruby's landline, but the question arises as to when the revocation was received:
- When the message was left?
- When the message was listened to?
Guidance for Answering Problem Questions
- Identify the issues or areas of law to be considered.
- Define important terms clearly.
- Structure the answer logically.
- State general rules before discussing exceptions to them.
- Provide authority for statements using case law or statutes.
- Apply the law to the facts presented.
- Consider all possible legal outcomes and their implications.
Use of Case Law
- Use case law as authority for legal principles, for example:
- The general rule is that acceptance must be communicated (Entores v Miles Far East Corp).
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Description
Explore the nuances of legal presumptions in commercial agreements with a focus on the cases of Edwards and Skyways, as well as the acceptance policies highlighted in Entores v Miles Far East. Understand how the postal rule affects the formation of a legally binding agreement.
