Contract Law: Standard Terms and Postal Rule

Play an AI-generated podcast conversation about this lesson

What is the Postal Rule primarily concerned with?

Acceptance of a contract by post (correct)

Sending of the original offer by post

Payment for a contract by post

Delivery of the contract goods by post

In the context of contractual relations, what is considered consideration?

An agreement between parties

Money or anything with economic value (correct)

An offer made by one party

Acceptance of an offer

What does the Postal Rule dictate in terms of the acceptance of an offer?

Acceptance is effective after the letter is opened by the offeror

Acceptance is effective the moment the letter is posted (correct)

Acceptance is effective after a confirmation letter is sent back

Acceptance is effective once the letter is received by the offeror

What is one reason the Postal Rule might not apply in a contract situation?

If the offeror demands the acceptance to be emailed Signup and view all the answers

What is the essential outcome of an offer and acceptance in contract law?

Creation of a legally binding agreement Signup and view all the answers

In a contract situation, what is typically considered as the beginning of the acceptance process based on the Postal Rule?

When the acceptance letter is posted by the offeree Signup and view all the answers

In scenario 3, what action by Hina would have legally constituted acceptance of Eddie's offer?

Telephoning Eddie on 1st May to accept the offer. Signup and view all the answers

According to the general rule mentioned, in bilateral contracts, silence ___________

must be explicitly communicated for acceptance. Signup and view all the answers

In the context of website orders acceptance, what is a common problem related to acceptance?

Mismatched written terms between seller and buyer. Signup and view all the answers

The 'Battle of the Forms' issue typically arises due to __________

Competing and differing standard written terms. Signup and view all the answers

In the postal rule, acceptance is considered valid when __________

The acceptance is posted regardless of offeror's receipt. Signup and view all the answers

What is the significance of a full and final agreement in relation to offer acceptance?

It ensures that all terms of the offer are understood and agreed to. Signup and view all the answers

What is a bilateral offer?

A promise in return for a promise Signup and view all the answers

What is the purpose of an invitation to treat?

To encourage someone to make an offer Signup and view all the answers

What is an example of an invitation to treat?

An auctioneer's call for bids Signup and view all the answers

In the case of Carlill v Carbolic Smoke Ball Co., what was the outcome?

The court ruled that the advertisement was an offer Signup and view all the answers

What is the significance of the case of Fisher v Bell?

It ruled that displays of goods are invitations to treat Signup and view all the answers

What is the purpose of the Sale of Goods Act (1979)?

To regulate the sale of goods Signup and view all the answers