Effective Contract Negotiation Strategies

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What should parties do when they vary in contract terms?

Expressly state that other terms remain unaffected (correct)

Wait for the other party to bring it up

Assume the other party will accept the changes

Imply the changes and hope the other party understands

What can create a legally binding contract, depending on the language used?

Written proposals

Handshake deals

Email correspondence (correct)

Verbal agreements

What happens when an offer is accepted?

A legally binding contract is formed (correct)

The parties can still change their minds

The offer is revoked

The parties are only morally obligated

What can the offeror do if they stipulated that the offer would be open for a certain time?

They can withdraw the offer within this time Signup and view all the answers

What is the status of an offer before it is accepted?

No legal commitment Signup and view all the answers

How is an offer determined?

Objectively, based on a reasonable person's belief Signup and view all the answers

What is a bilateral contract, according to the given advertisement?

An exchange of promise for promise Signup and view all the answers

In the Ferrari example, what would be the crucial factor in determining the car being referred to?

The surrounding circumstances Signup and view all the answers

What would happen if the person's intention was different from the reasonable interpretation of their words and deeds?

The contract would be binding Signup and view all the answers

What is the principle underlying the Partridge vs Crittenden case?

An advertisement is an invitation to treat Signup and view all the answers

What was the key difference between the Store case and the Gibson case?

The existence of an agreement as to price in the Store case Signup and view all the answers

What is a statement of intention, according to the text?

A statement that one party intends to do something Signup and view all the answers

In the case of Harris versus Nickerson, what was the auctioneer's advertisement?

A supply of information about the items Signup and view all the answers

Which of the following is NOT a characteristic of an offer?

A supply of information Signup and view all the answers

In the Gibson case, why did the House of Lords hold that a contract had not been concluded?

Because the council had not made an offer capable of being accepted Signup and view all the answers

What is the primary difference between a statement of intention and an offer?

The intent to create a legally binding agreement Signup and view all the answers

What is the purpose of an invitation to treat?

To initiate negotiations Signup and view all the answers

What is necessary for an offer to be effective?

The offer must be communicated to the offeree Signup and view all the answers

What is the outcome when an auctioneer's hammer falls?

The auctioneer has accepted the offer Signup and view all the answers

What is a key characteristic that distinguishes an offer from other steps in the negotiation process?

The intention to be bound upon acceptance Signup and view all the answers

What determines the existence of a binding contract between parties?

Their communication of words or conduct Signup and view all the answers

What was the outcome of the Centrovincial Estates v Merchant Investors Assurance Co case?

The claimants' mistake was accepted as the new rent Signup and view all the answers

Why did the defendants accept the claimants' mistaken offer in the Centrovincial Estates case?

Because they were dissatisfied with the previous rent Signup and view all the answers

What is the minimum requirement for an offer to be effective?

The offer must be communicated. Signup and view all the answers

What is the key factor in determining whether a contract has been formed?

The objective communication of terms Signup and view all the answers

What is the consequence of making an acceptance in ignorance of the offer?

The acceptance is invalid and no contract is formed. Signup and view all the answers

What did the claimants argue in the Centrovincial Estates case?

That no reasonable tenant would have expected the rent to be reduced Signup and view all the answers

What is the result of cross-offers?

No contract is formed until one party accepts the other's offer. Signup and view all the answers

What is the condition for an acceptance to be valid?

The acceptance must be an agreement to each of the terms of the offer. Signup and view all the answers

What is the view expressed in the Australian case of Rour v Clark?

There cannot be a contract without knowledge of the offer. Signup and view all the answers

What is the primary distinction between a unilateral contract and a bilateral contract?

The type of consideration exchanged Signup and view all the answers

In what scenario would an acceptance using a different method be considered valid?

When the alternative method is no less advantageous to the offeror Signup and view all the answers

What is the key feature of a unilateral contract that distinguishes it from other types of contracts?

The offer is exchanged for an act Signup and view all the answers

What can be implied from the way an offer is made?

The method of acceptance required by the offeror Signup and view all the answers

What is the significance of the Carbolic Smoke Ball Company example?

It is a classic example of a unilateral contract Signup and view all the answers

What is unique about the offer in a unilateral contract?

It is made to a large group of people Signup and view all the answers

What is the primary concern in determining the validity of an acceptance?

The advantage of the alternative method to the offeror Signup and view all the answers

What is the significance of the Quenerduaine v Cole case?

It inferred the required method of communicating acceptance Signup and view all the answers

What is the key distinction between a unilateral contract and other types of contracts?

The exchange of a promise for an act Signup and view all the answers

What is the primary concern in determining the validity of an offer?

The offeror's intention to create a legally binding contract Signup and view all the answers