Chapter 1 - part 2

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Questions and Answers

What is the primary basis for contract formation according to the text

  • The actual intention of the contracting parties
  • The reasonable belief of a third party
  • What was communicated between the parties by words or conduct (correct)
  • The subjective state of mind of the parties

In Smith v Hughes (1871), what principle did Blackburn J establish about contract formation?

  • That a contract is based on subjective tests only
  • That a reasonable man's belief about another's assent is crucial (correct)
  • That contracts are valid only if written and signed by both parties
  • That all contracts require a witness to be binding

Who stated that whether there is a binding contract depends on what was communicated between the parties?

  • Blackburn J in Smith v Hughes (1871)
  • Lord Clarke in RTS Flexible Systems Ltd v Molkerei Alois Müller GmbH & Co (UK Production) (correct)
  • Singleton J in Hartog v Colin and Shields
  • Lord Brandon in The Hannah Blumenthal

What does an objective test for agreement examine?

<p>What the parties said and did regardless of their actual intentions (C)</p> Signup and view all the answers

In Centrovincial Estates plc v Merchant Investors Assurance Co Ltd, what did Slade LJ say about withdrawing an offer after acceptance?

<p>It is against principles of contract law to withdraw an accepted offer due to mistake unknown to offeree (C)</p> Signup and view all the answers

What theory did the claimants in Centrovincial unsuccessfully argue applied to their case?

<p>Principle of estoppel (B)</p> Signup and view all the answers

According to Professor Atiyah's view on Centrovincial, under what condition should an offeree not create legal rights for himself by acceptance?

<p>When he has not relied upon the offer before being informed it was made as a result of a mistake (B)</p> Signup and view all the answers

How does Lord Brandon suggest that abandonment of an arbitration agreement could occur without express communication between parties?

<p>By one party altering their position significantly based on their belief (B)</p> Signup and view all the answers

In which situation might subjective intentions be relevant according to Slade LJ in Centrovincial Estates plc v Merchant Investors Assurance Co Ltd?

<p>Where an offeree knows that an offeror has made a mistake regarding terms (A)</p> Signup and view all the answers

What does estoppel rely upon?

<p>The representee acting detrimentally relying on representations intended to be acted upon (D)</p> Signup and view all the answers

Which case established that no detrimental reliance is required if acceptance evidence exists through writing?

<p>Centrovincial Estates plc v Merchant Investors Assurance Co Ltd (A)</p> Signup and view all the answers

What type of knowledge suffices for setting aside a contract due to unilateral mistake?

<p>Actual knowledge (B)</p> Signup and view all the answers

In cases like Hartog, how do courts typically determine whether there’s been acceptance?

<p>By considering if one party had actual knowledge of another’s mistake (B)</p> Signup and view all the answers

Which case highlighted that claimants could not snatch bargains they knew were not intended?

<p>Hartog v Colin and Shields (D)</p> Signup and view all the answers

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