Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Contract offer accep
Contract law Ireland offer acceptance contract formation
| Question | Answer |
|---|---|
| What constitutes a legally enforceable contract? | Where there is offer, acceptance, consideration and intention to form legal relationship - Offer and acceptance alone = mere agreement accept gift - no consideration (Not legally enforceable) |
| What three things must an offer be? | 1) Clear 2) certain and 3) unconditional (offeree empowered to complete contract with no more from offeror) |
| What was the point in Storer v. Manchester City Council [1974] | For a proposition to be an offer must be FINAL |
| What is an invitation to treat? | It is an invitation to make offers - not an offer in itself |
| Give four examples of an invitation to treat. | 1) Advertisments 2) Auctions 3) Tenders 4) window displays |
| ADVERTISMENTS: What is the definition of "mere puff"? | A representation which no reasonable person would expect to be true - expected from a sales presentation. Does not constitute an offer |
| Give an example of a case where a representation was held to be "mere puff" | Leonard v Pepsi Co - Advertisment offering “Harrier Fighter 7,000,000 Pepsi points.” Not credible and not in the points brochures referred to in ads. |
| What are the two exceptions to the rule that an advertisment is a mere invitation to treat? | 1) Where contract is clear and explicit leaving nothing open to negotiation Leftkowitz v. Great Minneapolis Surplus Store [1957] 2) Unilateral offers to world at large which include an offer to be bound Carlill v. Carbolic Smoke Company |
| What was the point in Leftkowitz v. Great Minneapolis Surplus Store [1957] | mink stoles offered $1 “first come first served” – refused to sell to a man because ladies coat – Held: certain unambiguous word made a contract upon acceptance. |
| What was the point in Carlill v. Carbolic Smoke Company | Unliateral offers to world at large –become contract by act of acceptance.offered €100 If caught influenza having purchased and used the smoke ball. “ €1000 deposited bank to meet any claims.” = intended to be bound. |
| DISPLAY OF GOODS: What case established the principle that putting goods on display was a mere invitation to treat rather than an offer? | Pharmaceutical Society of Great Britain v. Boots Cash Chemist [1953] - offer made by customer to chemist at till. |
| Where in law was it established that in an auction the bidder makes the offer not the auctioneer or their client? | Sale of Goods Act 1893 s 58(2) |
| What exception is there to the principle that the bidder makes the offer in an auction? | Where the auction is advertised "without reserve" - compelled to give to the highest bona fide bidder. Warlow v. Harrison (1859)Warlow ceased bidding when owner bid for own horse Held: as Warlow highest bona fide bidder must sell to him "without reserve" |
| What case established that a tender offer was merely an invitation to treat? | Spencer v. Harding (1870) Held: no obliged to accept highest bidder for stock as invitation to tender not a contract. Except where stipulates e.g. “will go to highest bidder” = offer. |
| Are quotations in a tender an offer or an invitation to treat? | Quotations for tenders = an invitation to treat except Dooley v. Egan [1938] phrase “immediate acceptance only” transformed quote into offer. |
| What are the 6 ways an offer can be terminated? | 1) Revocation 2) Rejection 3) Lapse of time 4) death 5) counter offer 6) failure of a condition subject to which an offer was made. |
| When rejecting the offer is the offeree required to do so in any way specified in the offer? | Yes: Walker v. Glass (offer stated "acceptance upon payment of deposit) intention to accept conveyed verbally but offer revoked before deposit paid. Held: no contract exist as the method of acceptance was specified and not met. |
| Does the offeror have to communicate revocation directly to the offeree for the revocation to be effective? | No: the principle is that the communication should be EFFECTIVE not that it should be direct. Dickinson v. Dodds (1876) FRIEND TELL OFFEREE THAT OFFER REVOKED = EFFECTIVE |
| When a revocation is sent by fax or E-mail when is it effectively communicated? | From the moment it SHOULD have been read (not when it actually was read) |
| How can an offeree reject an offer? | 1) by giving a counter offer 2) By express or implied words or actions. |
| What case established that a mere request to clarify terms is not a counter offer from the offeree? | Stevenson v. Jacques & Co v. McLean (1880)enquiry if delivery could take place over 4 months not a counter offer. |
| How can an offer terminate through lapse of time? | 1) When the time limit is stated 2) Otherwise within a reasonable time Ramsgate Victoria Hotel Co v. Montefiore (1860) shares allocate 4 months after offered = unreasonable. |
| How is "acceptance" defined? | the FINAL UNCONDITIONAL and CERTAIN indication of agreement COMMUNICATED to the offeror with INTENTION of accepting the offer. |
| Can acceptance be implied from conduct? | Yes provided 1) Offer made in clear unambiguous terms capable of acceptance 2) Subsequent behaviour is consistent only with the offer. |
| What case established that "silence" does not constitute acceptance of a contract? | Felthouse v. Bindley (1862) Uncle wrote to nephew offering money to buy horse saying "I will presume acceptance if you remain silent" Held: silence is not legal acceptance of an offer (in general). |
| What 3 exceptions are there to the general rule that "silence" does not constitute acceptance of an offer? | 1) Where parties agree that silence = acceptance 2) where silence = acceptance in custom and practice Rust v. Abbey Life Assurance [1979] 3) Service already given which cannot be returned - eg mechanic casually fixes car without agreeing fee in advance |
| Is an acceptance valid before it is communicated to the offeror? | No: not as a general rule. |
| What is the postal rule? | Offer is 1) accepted when letter is put in post box and 2) contract formed in the place of posting Kelly v. Cruise Catering [1994] ship worker posted job acceptance in Dublin to Oslo - contract valid in Ireland. |
| What are the excepotions to the postal rule? | 1) Where the parties stipulate that acceptance only happens upon receipt of confirmation by offeror 2) Where it would be manifestly absurd. 3) public policy - break international law Apicella v. Scala [1931] |
| What European legislation stipulates that an electronic communication is valid once parties are able to receive it and the contract is formed in the country of receipt? | EC (Directive 2000/31EC) Regulations 2003 Art 14 |
| What 2 exceptions are there to the rule that acceptance must be received by the offeror before a contract is valid? | 1) The postal rule 2) with a unilateral contract (i.e. agreement of offeree not required for offeror of a unilateral promise to be bound - e.g. rewards promised to enter competition - performance by offeree = acceptance) |
| What is a unilateral contract? | Where a promise is made only by the offeror. Offeree is not bound to accept and only offeror is bound to perform if the offeree has acted upon the promise. |
| What are the three terms which must be certain for a valid contract to be formed? | 3 P's PRICE, PARTIES, PROPERTY (subject matter of the contract) |
| What 2 kinds of terms would cause a contract to be declared void? | 1) Illusory terms (empty promises) 2) Ambiguous terms. |
| What are the 6 ways an ambiguous term can be remedied? | 1) Business efficacy test (Moorcock)2) by contract itself (arbitration clause) 3) reasonableness implied 4) Parole evidence 5) Implied by statute 6) implied by previous course of dealing. |
| Give an example of a case where terms were deemed to be illusory and the contract void. | Provincial Bank of Ireland v. Donnell (1932) Bank ask wife to give guarantees on future loans -but- bank had absolute discretion to refuse loan- not possible to give undertaking on loan that does not already exist and may never exist. = illusory |
| When there is offer and acceptance to a bilateral contract on clear and unqualified terms is there an enforceable contract? | Yes: because the mere MUTUAL promise constitutes consideration on both sides (an offer of a gift accepted for no consideration is a mere unenforceable agreement)Centrovincial Estates plc. v. Merchant Investors Assurance Company Ltd [1983] |
Created by:
Solomon