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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?

What the parties said and did regardless of their actual intentions 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?

It is against principles of contract law to withdraw an accepted offer due to mistake unknown to offeree Signup and view all the answers

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

Principle of estoppel 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?

When he has not relied upon the offer before being informed it was made as a result of a mistake Signup and view all the answers

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

By one party altering their position significantly based on their belief 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?

Where an offeree knows that an offeror has made a mistake regarding terms Signup and view all the answers

What does estoppel rely upon?

The representee acting detrimentally relying on representations intended to be acted upon Signup and view all the answers

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

Centrovincial Estates plc v Merchant Investors Assurance Co Ltd Signup and view all the answers

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

Actual knowledge Signup and view all the answers

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

By considering if one party had actual knowledge of another’s mistake Signup and view all the answers

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

Hartog v Colin and Shields Signup and view all the answers