174 Questions
What is the central notion of a contract?
Bargain
According to Sir Federick Pollock, a contract is a promise or set of promises that:
The law will enforce
Which element is NOT required for a contract to be valid?
Intention to create social relations
What must follow a valid offer to form a binding contract?
Acceptance
Which of the following is an essential element of a valid contract?
Consideration
How is an offer defined in the context of a contract?
A statement of intention to be bound on certain terms
In a self-service shop, who offers to buy goods according to the text?
The customer
According to the Pharmacy and Poisons Act 1933, who must supervise the sale of specified drugs?
Pharmacist
What is the nature of goods display in a self-service shop?
Offer by the customer
What is the general nature of goods advertisement in newspapers, radio, or television?
Invitation to treat
Which party is not bound to sell goods at the price indicated in a self-service shop?
Customer
'Bramblefinch cocks, bramblefinch hens, 25s.each' was mentioned in which case?
Partridge v Crittenden
What does the Sale of Goods Act, 1962 state regarding auction advertisements?
It does not constitute an offer to any person that the goods will actually be put up for auction.
In an auction sale without reserve price, what may it constitute to the highest bidder?
An offer to enter into a contract with the seller.
In the case of WARLOW v HARRISON (1859), what was the outcome when the Plaintiff bid for a pony at an auction 'without reserve'?
The Plaintiff was entitled to recover the pony.
What is one key difference between an auction sale with a reserve price and one without?
In one, there is no obligation for the highest bidder to purchase.
According to Baron Martin in WARLOW v HARRISON (1859), what did he state about the relationship between the auctioneer and the Plaintiff?
'He is entitled to recover the item.'
When is an auction sale considered complete?
When the auctioneer announces its completion by the fall of the hammer
What is the significance of a sale expressed to be 'without reserve'?
The highest bona fide bidder is entitled to buy the goods at the price bid
Under what circumstances can a seller or their representative make a bid at an auction?
Only when a right to bid is expressly reserved
What happens if an auction sale is notified to be subject to a reserve price?
The seller or their representative can make one bid only
What does it mean when goods at an auction are put up in lots?
Each lot is considered a separate contract of sale
Can a seller withdraw goods after an auctioneer announces the completion of a sale?
No, unless paragraph (d) applies
When does an offer lapse?
After a fixed period specified in the offer
What happens if the condition in an offer is not satisfied?
The offer becomes invalid
In what scenario can an offeree validly accept an offer after the offeror's death?
If the offeree is unaware of the offeror's death
What is the possible solution to avoid revocation of an offer before full performance?
Implementing the two-contract theory
What determines whether an offer has been accepted in English cases?
The intentions of the parties and circumstances of the case
Can an offer be revoked after acceptance has begun according to English law?
Yes, as long as acceptance is not yet complete
What is the key difference between an auction sale without reserve price and an auction sale with reserve price?
An auction sale without reserve price constitutes an offer to the highest bidder, while an auction sale with reserve price does not.
In the case of WARLOW v HARRISON (1859), what did Baron Martin assert about the relationship between the auctioneer and the Plaintiff?
There is a contract between the auctioneer and the Plaintiff, and the Plaintiff is entitled to recover the item sold.
What occurs when goods are advertised for an auction?
The advertisement does not constitute an offer to any person that the goods will actually be put up.
What did WARLOW v HARRISON (1859) establish regarding a plaintiff's bid at an auction 'without reserve'?
The plaintiff's bid amounted to a binding contract with the auctioneer.
What constitutes an offer in an auction sale without reserve price?
The highest bid made by any bidder.
In an auction sale, when is the sale considered complete according to Section 4 of the Auction Sale Act?
When the auctioneer announces its completion by the fall of the hammer
What action may a bidder take before the auctioneer announces the completion of a sale?
Retract their bid
Under what circumstance can a seller or their representative make a bid at an auction?
If a right to bid is expressly reserved
What is the significance of a sale expressed to be 'without reserve' in an auction?
The highest bona fide bidder is entitled to buy the goods at the price bid, even if the auctioneer refuses
When can a seller or any person on his behalf make only one bid at an auction?
If the auction is notified to be subject to a reserve price
What does Section 4 of the Auction Sale Act stipulate regarding lots in an auction sale?
Each lot is deemed to be the subject of a separate contract of sale
When can an offer be terminated by rejection or counteroffer?
Before the offeror accepts the offer
In what situation does a promise to keep an offer open not prevent revocation?
When there is no binding contract to keep it open
When is revocation of an offer considered effective under English law?
When it is communicated to the offeree
Who can communicate the revocation of an offer to the offeree?
Any reliable third party
In the context of unilateral contracts, what issues can arise regarding revocation?
The offeror can revoke the offer even after the offeree begins to fulfill the stipulated condition
What modification did Section 8 of the Contract Act, 1960 make regarding revocation of offers?
Revocation is ineffective unless communicated to the offeree
In the context of a tender notice, what happens when it is stated that the lowest or highest bidder will get the contract?
It is deemed a unilateral offer.
How does a referential bid, such as 'the highest other bid plus 10%' in a tender notice, impact the bidding process?
It is usually rejected as a non-compliant bid.
When does an offer terminate due to the failure of a condition subject to which it was made?
If the condition is not satisfied by a specified deadline.
What determines whether a statement in a tender notice constitutes an invitation to treat or an offer?
The specific parties to whom the request for tenders is made.
In English contract law, when can an offer lapse?
After a fixed period specified in the offer
In what scenario would a request for tenders be considered an invitation to treat?
If it is stated that the decision will be based on a combination of factors including price and quality.
Under what circumstances is an offer not capable of acceptance?
When a condition in the offer is not satisfied
What was established by the court in Harvela Ltd v Royal Trust of Canada regarding tender notices?
'The lowest or highest bidder will get the contract' statement can transform an invitation to treat into an offer.
What is the possible solution to prevent an offeror from revoking an offer before full performance?
Offer accompanied by another implied offer not to revoke
When does an offer automatically terminate according to English contract law?
After the offeree's death
What determines whether an offeree can validly accept an offer after the offeror's death?
Ignorance of the offeree regarding the offeror's death
What is the central notion of a contract based on the text?
Consideration
According to Sir Federick Pollock, what is a contract?
Promise or set of promises enforceable in law
Which element is necessary for a contract to be valid based on the text?
Consideration
What signifies a valid offer in contract law?
Statement of intention with certain terms
What is necessary for an offer to be considered valid in contract law?
Certain and clear terms
Which party must make a valid offer in a contract?
Offering party
What did the court establish in WARLOW v HARRISON (1859) regarding a bid at an auction 'without reserve'?
The bid constitutes an offer by the bidder
In an auction sale with a reserve price, what is typically true?
Bids below the reserve price are not considered offers
What distinguishes an auction sale without reserve price from one with reserve price?
A bid in a sale without reserve may constitute an offer
When does an advertisement for an auction constitute an offer?
Never, it does not constitute an offer
In WARLOW v HARRISON (1859), what was the significance of Baron Martin's statement regarding the auctioneer and the Plaintiff?
The Plaintiff was entitled to recover the item bid on
In Lefkowitz v Great Minneapolis Stores (1957), what did the US court determine regarding the advertisement for fur coats?
It was a unilateral offer.
Based on the Divisional Court's decision in the case of the appellant charged with offering a wild live bird for sale, what concept did the court believe the appellant's action fell under?
Invitation to treat
What did Justice Murphy emphasize in the case of Lapin fur sale that led to the plaintiff being entitled to performance from the defendant?
The clarity and definiteness of the offer
According to Carlill vs. Carbolic Smoke Ball Co.Ltd, when would an advertisement be considered an offer?
When it is a unilateral offer.
What did the Divisional Court quash the appellant's conviction for when he was charged with unlawfully offering a live bird for sale?
Issuing an invitation to treat
According to Justice Murphy's ruling in the Lapin fur case, what does it depend on whether a newspaper advertisement is an offer or an invitation to make an offer?
The clarity of intentions between parties
What is the key difference between an offer and an invitation to treat in contract law?
An offer shows the intention to be bound, while an invitation to treat is an indication of willingness to negotiate.
When are goods displayed in a shop window or on supermarket shelves considered an invitation to treat?
When placing them on display without indicating price
In English contract law, what constitutes an offer according to the text?
A definite indication of being bound by certain terms
What distinguishes a response to an invitation from acceptance of an offer?
Whether a counteroffer is made in response
What does it mean when goods are displayed in a shop window or on supermarket shelves?
The goods are merely an invitation for customers to make an offer
What distinguishes an offer from an invitation to treat in contract law?
An invitation to treat shows intention to be bound, while an offer is open for negotiation.
Under what circumstances does an offer terminate due to the offeree's death?
If the offeree is notified of the offeror's death
In which scenario would an offer be considered not capable of acceptance?
When the contract is for personal services
What may cause an offer to lapse according to English law?
Failure to satisfy a condition in the offer
When is an offer not capable of acceptance under English contract law?
When it is a contract for personal services
What happens if an offeree accepts an offer not knowing about the offeror's death?
The acceptance is valid regardless
When does an offer terminate automatically according to English contract law?
When either party dies and the other is aware
What defines a valid offer according to NTHC Ltd v Antwi SCGLR 117, 125?
An indication in words or by conduct that the offeror is willing to be bound by contract terms expressed in the offer
In the case of Carlill v Carbolic Smoke Ball Company (1893), what was the offer made by the defendants?
A promise to pay £100 to anyone who got sick from their product
Why did the court rule against the master of a ship in Taylor v Laird (1856)?
Because he did not communicate his offer to assist in sailing the ship home
What is a key requirement for a valid offer to be considered in contract law?
The offer must be communicated to the offeree
What differentiates an invitation to treat from a valid offer?
An invitation allows negotiating further terms
According to English contract law, how should an offer be communicated for it to be considered valid?
To a particular person, group of person, or the world at large
What is the main distinguishing factor between an offer and an invitation to treat according to the text?
The intention of the party making the statement
In what situation can goods displayed in a shop window or on supermarket shelves be considered an invitation to treat?
When the display indicates availability for purchase
Why was it held in the case of Mrs. Carlill that an offer can be made to the 'whole world'?
The offer was deemed definite
What did the court establish regarding the distinction between an offer and an invitation to treat in relation to negotiation?
An invitation signals readiness to enter into negotiations without immediate commitment
Which scenario best exemplifies an invitation to treat?
A letter stating 'we may be prepared to sell you'
What is the key determining factor between an offer and an invitation to treat according to the text?
The intention of the party making the statement
In the case of Lefkowitz v Great Minneapolis Stores (1957), how did the US court view the advertisement for fur coats?
As a unilateral offer
What differentiates an offer from an invitation to treat in contract law?
An offer is not open for negotiation, while an invitation to treat is.
What factor determines whether a newspaper advertisement constitutes an offer or an invitation to make an offer?
The legal intention of the parties and surrounding circumstances
How did the Divisional Court in a specific case view the defendant's advertisement for the sale of Lapin fur?
As a legally binding contract
What did the US court decide concerning a Saturday advertisement for fur coats in Lefkowitz v Great Minneapolis Stores (1957)?
It was a unilateral offer with specific terms
What action can an individual take if they are the first to appear at a seller's place of business as requested in an advertisement?
Offer the stated purchase price and be entitled to performance
In an auction sale, what is considered an invitation to treat?
The goods displayed at the auction
What happened in the case of PAYNE v CAVE (1789)?
Cave withdrew his bid before it was accepted
What was the outcome in HARRIS v NICKERSON (1873)?
Harris was compensated for his time and expenses
When can an offer be withdrawn in an auction sale according to the text?
Before it is accepted by the auctioneer
What constitutes an offer in an auction sale according to the text?
The fall of the auctioneer's hammer
What distinguishes an invitation to treat from an offer in an auction sale?
The acceptance of a bid by the auctioneer
What happens if an intending purchaser attends an auction and the property is not put up for sale?
The purchaser has no right of action unless there is fraud involved.
When does a request for tenders generally become an offer?
When it states that the lowest bidder will get the contract.
In the context of tender notices, what was held in the case of Blackpool and Fylde Aero Club v Blackpool BC?
A request to specified parties with criteria for awarding contracts can create a binding offer.
How does an offer typically terminate according to English law?
By revocation from the offeror.
What leads to a referential bid not being considered valid in tender notices?
It includes a percentage addition to another bid.
What determines whether a statement in a tender notice constitutes an invitation to treat or an offer?
The specific parties mentioned in the notice and criteria for contract award.
In the case of Taylor v Laird (1856), why were the ship owners not required to pay for the master's assistance in sailing the ship home?
The offer to assist was not communicated to the ship owners.
What distinguishes a valid offer in contract law according to the case of Carlill v Carbolic Smoke Ball Company (1893)?
The offer must be communicated to the world at large to be valid.
What determines if an offer is capable of acceptance in English contract law according to NTHC Ltd v Antwi SCGLR 117, 125?
Whether the offeree communicates acceptance of the terms.
Why did the defendant company in Carlill v Carbolic Smoke Ball Company issue an advertisement offering a reward for using their product?
To increase sales of their products.
What impact does communication play in validating an offer as stated in Taylor v Laird (1856)?
It allows for immediate acceptance or rejection by the offeree.
How did the court differentiate between an invitation to treat and a valid offer in Carlill v Carbolic Smoke Ball Company?
By analyzing if there was a clear intention to be bound by contract.
What is the significance of distinguishing between an offer and an invitation to treat in contract law?
It determines the intention of the party involved
In the context of contract law, what does it mean when goods are displayed in a shop window or on supermarket shelves?
It serves as an invitation to negotiate
What is the main difference between an offer and an invitation to treat based on established legal principles?
An invitation to treat indicates a willingness to negotiate, while an offer is a final statement
In what situation would goods displayed in a self-service shop be considered an offer?
When a price tag is missing from the item
What is typically true about responses to invitations to treat in contract law?
They can result in either further negotiation or an offer
Why is it important for the courts to establish instances that constitute an invitation to treat in contract law?
To clarify when an offer becomes legally binding
What effect does communicating a rejection or counter offer have on an offer?
Invalidates the offer
In the context of revocation, when does an offer become irrevocable according to common law principles?
When the offeror has promised to keep the offer open
How is revocation of an offer rendered ineffective?
By communicating directly to the offeree
In what situation does revocation need to be communicated to the offeree by a reliable third party?
When dealing with unilateral contracts
How does communication method affect the effectiveness of revocation?
Effective upon receipt by the offeree
What possible challenge arises concerning revocation in relation to unilateral contracts?
The timing of revocation after acceptance has started
What is the key implication of an auction sale being expressed to be without reserve?
The highest bidder is entitled to buy the goods at the price bid
In an auction sale subject to a reserve price, what is the maximum number of bids allowed by the seller or their representative?
One bid
Under what circumstance can a seller or their representative make a bid at an auction?
Unless otherwise stated in writing
What does Section 4 of the Auction Sale Act allow regarding bidding at auctions?
Limited bidding with one reserved bid by the seller or representative
What action can a bidder take before the auctioneer announces the completion of a sale according to Section 4 of the Auction Sale Act?
Retract their bid
What did Baron Martin assert in the case of WARLOW v HARRISON (1859) regarding the relationship between the auctioneer and the Plaintiff?
The Plaintiff is entitled to recover the item.
In an auction sale without reserve price, what does it indicate when the highest bidder wins?
The highest bidder has a legal entitlement to acquire the item.
What is the significance of an auction sale 'without reserve price' according to the text?
It symbolizes an offer to the highest bidder, creating a binding contract.
In an auction sale with a reserve price, what typically happens if bidding does not reach the reserve price?
The auction continues until someone meets the reserve price or until it is withdrawn.
When goods are advertised for an auction, what legal status does this advertisement typically hold according to the text?
It represents an invitation to treat rather than an offer.
In the case of NTHC Ltd v Antwi SCGLR 117, 125, an offer is defined as:
An indication by the offeror that they are willing to be bound by the terms stated in the offer upon acceptance by the offeree.
What is a fundamental requirement for a valid offer?
The offer must be communicated to the offeree to allow for acceptance or rejection.
What was the outcome in Taylor v Laird (1856) based on the actions of the ship's master during a voyage?
The ship's owners were not obligated to pay for the master's assistance as there was no communicated offer to assist.
What distinguishes Carlill v Carbolic Smoke Ball Company (1893) from other cases mentioned in the text?
The defendants issued a public advertisement offering a reward for a specific action, leading to a binding contract.
Which method(s) can an offer be communicated according to the text?
In writing, orally, or through conduct
What distinguishes an invitation to treat from a valid offer based on the information provided?
An invitation to treat is merely an invitation for offers while an offer is capable of acceptance.
When does the sale become complete in an auction as per Section 4 of the Auction Sale Act?
When the hammer falls or in another customary manner
What action can any bidder take before the auctioneer announces the completion of a sale?
Retract their bid
In an auction expressed to be without reserve, who is entitled to buy the goods?
The highest bona fide bidder at the price bid
What right does a seller have in an auction notified to be subject to a reserve price?
The right to make only one bid
What is allowed regarding bidding if a right to bid is expressly reserved according to Section 4 of the Auction Sale Act?
The seller or someone on their behalf may bid
What is permitted when an auction sale is notified to be without reserve according to Section 4 of the Auction Sale Act?
'Bonafide' bidding from all participants
What did the defendants argue regarding the offer in the Carlill v Carbolic Smoke Ball Company case?
An offer to the 'whole world' was not possible in English law
What is the key distinction between an offer and an invitation to treat in contract law according to the text?
An offer indicates a willingness to be bound, while an invitation to treat is not yet binding
In which situation are goods displayed in shop windows or on supermarket shelves generally considered an invitation to treat?
When the goods are merely on display for customers to select
What distinguishes a response to an invitation to treat from a response to an offer according to the text?
The response to an invitation results in an agreement, while a response to an offer is still under negotiation
What determines whether goods displayed in a self-service shop are considered an offer or an invitation to treat?
The context in which the goods are displayed
Why is it important for individuals to understand what constitutes an invitation to treat in contract law?
To ensure they are not unfairly bound by verbal agreements
In the case of Boots, why did the Pharmaceutical Society bring an action against the defendants?
For allowing customers to select drugs from the shelves without supervision
What was the significance of the decision in Partridge v Crittenden regarding advertisements for goods?
It clarified that advertisements for goods are invitations to treat
What distinguishes self-service shops from traditional shops in terms of the buying process according to the case of Boots?
Customers offer to buy goods at checkout in self-service shops
What was the outcome of Fisher v Bell regarding the display of goods in shops?
The display of goods in shops is considered an invitation to treat
What distinguishes an invitation to treat from a valid offer in the context of goods display according to legal principles?
An invitation to treat precedes a valid offer in a buying transaction
What did the court determine about customer actions in self-service shops based on the case of Boots?
Customers are bound by their selection of goods in self-service shops
What effect does communication of a rejection or counter offer have on an offer?
Invalidates the original offer
According to Section 8 of the Contract Act, 1960, when is revocation of an offer considered effective?
When communicated to the offeree
In what scenario can revocation of an offer be done by a reliable third party?
For unilateral contracts
Under what circumstances can a seller revoke an offer once the offeree has begun to fulfill the stipulated condition?
Unilateral contracts are exempt from this rule
What did BRYNE v VAN TIENHOVEN (1880) establish about the effectiveness of revocation?
Revocation is effective upon arrival when sent by post
How does Section 8 of the Contract Act, 1960 modify the common law principle regarding revocation?
Requires revocation to be communicated to offeree
Learn about the legal aspects of auction sales, including the distinction between an offer and an advertisement for goods to be auctioned. Explore the concepts of auction sales with and without reserve prices as per the Sale of Goods Act and Auction Sales Law.
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