Contract Law: Offer and Acceptance
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Questions and Answers

According to the 'mirror image' rule of contractual formation, what must the courts find?

  • An offer with unclear terms
  • A clear and unequivocal offer (correct)
  • An offer with hidden terms
  • A vague and ambiguous offer
  • In the context of most cases discussed in this chapter, what is the main allegation?

  • Criminal negligence
  • Breach of contract (correct)
  • Intentional infliction of emotional distress
  • Fraudulent misrepresentation
  • In the case of Butler v Ex-Cell-O Corp (England) Ltd, why was the discussion of the rules of offer and acceptance crucial?

  • To establish the defendant's financial position
  • To determine the admissibility of evidence
  • To prove the innocence of the accused party
  • To find the existence of a contract and ascertain its terms (correct)
  • According to Professor Atiyah, how can the courts use the requirements of offer and acceptance in deciding cases?

    <p>'Reason forwards' or 'reason backwards'</p> Signup and view all the answers

    What is the primary rule of contractual formation mentioned in Chapter 2?

    <p>'Mirror image' rule</p> Signup and view all the answers

    What does the 'mirror image' rule require an acceptance to be?

    <p>Equally clear and unequivocal</p> Signup and view all the answers

    According to the case of Warlow v Harrison, who makes the offer to sell without reserve at an auction?

    <p>The auctioneer</p> Signup and view all the answers

    In the context of auctions with a reserve price, what is the consequence if the auctioneer withdraws the lot after the reserve price is reached?

    <p>The auctioneer is in breach of a collateral contract with the highest bidder</p> Signup and view all the answers

    What did the case of Harvela Investments Ltd v Royal Trust Co of Canada determine about an invitation to submit sealed offers for shares?

    <p>It is an offer of a unilateral contract to sell to the highest bidder</p> Signup and view all the answers

    In the case of Blackpool and Fylde Aero Club Ltd v Blackpool BC, what did the defendant council fail to do according to the court's judgment?

    <p>They failed to empty the letter box on time</p> Signup and view all the answers

    What did Martin B state in the Warlow v Harrison case about an auctioneer's unsolicited offer to sell without reserve?

    <p>It results in a collateral contract between the auctioneer and the highest bidder</p> Signup and view all the answers

    In general, what is an invitation to tender considered as?

    <p>An invitation to treat</p> Signup and view all the answers

    In the case of Lefkowitz v Great Minneapolis Surplus Stores, what was the outcome of the claimant's lawsuit related to the lapin stole advertisement?

    <p>The claimant was awarded $138.50 in damages.</p> Signup and view all the answers

    According to the Supreme Court of Minnesota, what was the legal status of the advertisements placed by the defendants in the case of Lefkowitz v Great Minneapolis Surplus Stores?

    <p>The advertisements were invitations to treat, not offers.</p> Signup and view all the answers

    Which of the following is true about the general rule regarding newspaper advertisements?

    <p>Newspaper advertisements are typically considered invitations to treat rather than offers.</p> Signup and view all the answers

    What is the role of an auctioneer in the context of contract law?

    <p>An auctioneer makes an invitation to treat when inviting bids and the offer is made by the bidder.</p> Signup and view all the answers

    What was the outcome of the claimant's lawsuit related to the first advertisement for fur coats in Lefkowitz v Great Minneapolis Surplus Stores?

    <p>The claimant's lawsuit was dismissed due to the speculative and uncertain value of the coats.</p> Signup and view all the answers

    How was the sale of goods considered in relation to pharmacist supervised sales at the cash desk?

    <p>The sale was considered to have taken place at the cash desk, making the display of goods an invitation to treat.</p> Signup and view all the answers

    In contract law, what is the general rule regarding the display of goods in a shop window?

    <p>The display of goods is considered an invitation to treat, not an offer.</p> Signup and view all the answers

    Which case illustrates the rule that the display of goods in a shop window is an invitation to treat?

    <p>Pharmaceutical Society of GB v Boots Cash Chemists</p> Signup and view all the answers

    What problem does the second approach, considering the display of goods as an offer accepted at the cash desk, pose according to the text?

    <p>It takes away the shopkeeper's freedom to decide whom to trade with.</p> Signup and view all the answers

    What does the first approach, considering the display of goods as an offer accepted when picked up by the purchaser, imply?

    <p>The purchaser becomes bound as soon as they pick up the goods.</p> Signup and view all the answers

    What is the potential risk for a customer if the display of goods were considered an offer instead of an invitation to treat?

    <p>Being vulnerable to misleading price information from shopkeepers.</p> Signup and view all the answers

    In contract law, which approach involves deciding the outcome first and then fitting negotiations into the offer and acceptance framework?

    <p>Reasoning backwards</p> Signup and view all the answers

    Which of the following best describes an offer in contract law?

    <p>An expression of willingness to enter into a contract on stated terms, capable of acceptance</p> Signup and view all the answers

    What does an invitation to treat represent in contract law?

    <p>An expression of willingness to enter into negotiations</p> Signup and view all the answers

    In the Gibson v Manchester City Council case, what did the House of Lords conclude regarding the council's letter?

    <p>It was an invitation to treat and no contract had been concluded</p> Signup and view all the answers

    What did the trial judge and Court of Appeal hold in the Gibson v Manchester City Council case?

    <p>That Mr. Gibson's acceptance formed a binding contract</p> Signup and view all the answers

    Why does the Gibson case highlight the importance of identifying offer and acceptance in contract law?

    <p>To illustrate the difficulty in distinguishing between offer and invitation to treat</p> Signup and view all the answers

    Study Notes

    • Professor Atiyah discusses two ways for courts to reason in contract law: "reasoning forwards" and "reasoning backwards"
    • Traditional approach is "reasoning forwards" where courts find offer and acceptance before deciding the outcome
    • "Reasoning backwards" involves deciding the outcome first and then fitting negotiations into offer and acceptance framework
    • Offer is a statement expressing willingness to enter into a contract on stated terms, which is capable of acceptance
    • Invitation to treat is an expression of willingness to enter into negotiations, not a capable-of-acceptance offer
    • Gibson v Manchester City Council case illustrates the difficulty in distinguishing between offer and invitation to treat
    • Mr. Gibson completed council house purchase application, but left the purchase price blank
    • Council replied stating they "may be prepared to sell" and invited Mr. Gibson to make a formal application
    • Mr. Gibson accepted the council's price and carried out maintenance, but sale was discontinued after local election
    • Council argued no contract had been concluded, stating their letter was not an offer but an invitation to treat
    • Trial judge and Court of Appeal held a contract had been concluded, but House of Lords disagreed
    • The House of Lords held council's letter was an invitation to treat, and no contract had been concluded.
    • Gibson case highlights the importance of identifying offer and acceptance, and the interpretative exercise judges go through in making that determination.

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    Test your understanding of offer and acceptance in contract law with this quiz. Explore cases like Storer v Manchester City Council and Gibson to grasp the nuances of contract formation.

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