DETAILED PGDL STUDY GUIDE WITH QUESTIONS AND ANSWERS WHICH ARE CORRECT. LATEST UPDATE 2025

THE STRUCTURE OF CONTRACT LAW/ PGDL/ LATEST
UPDATE QUESTIONS AND ANSWERS.


QUESTION: What are the main invitation to treat situations? - ANSWER-- Advertisement

- Self-service and shop windows

- Auctions (with reserve)

- Invitations to tender

- Mere statements of price




QUESTION: What is the postal rule? - ANSWER-- Acceptance occurs when the letter is posted not when
it is received

- Also applies if the letter is never received (proof of postage)

- Postal rule can be ousted in the offer

- Only applies to acceptance not revocation




QUESTION: Can the offeror stipulate the method of acceptance? - ANSWER-- Yes, but they must CLEARLY
STATE that only the stipulated method will be accepted.

- Remember an equally expeditious method to that stipulated should be sufficient (Timm v Hoffman)

,QUESTION: The general rule is that acceptance has no effect until communicated. However, what are
the other considerations? - ANSWER-- Silence cannot amount to acceptance

- Acceptance in unilateral contracts (no need to communicate. Performance)

- Acceptance by conduct (may be inferred by conduct without being expressly communicated)




QUESTION: Counter offer v Request for information - ANSWER-Counter offer (Hyde v Wrench)

- Destroys previous offer, rendering it incapable of acceptance

- role of offeror and offeree swaps




Request for information (Stevenson, Jacques and Co v McLean)

- Does not attempt to vary the terms of offer

- The previous offer remains open for acceptance




QUESTION: Types of Termination - ANSWER-- Rejection

- Revocation (think about communication in bilateral and unilateral)

- Lapse in time

- Failure to comply with condition

- Death of one of the parties (think about offeror v offeree)




QUESTION: Acceptance must be... - ANSWER-- In response to the offer

- Unqualified

,- Communicated (think about third party communication)




QUESTION: When is intention to create legal relations presumed? - ANSWER-- In commercial agreement
it is presumed that there is an intention

- In a social/domestic agreement it is not presumed that there is an intention




QUESTION: How can the presumption that the parties have an ICLR be rebutted? - ANSWER-Wording
that the parties do not intend to create legal relations that is clear and unambiguous




QUESTION: What is consideration? - ANSWER-The value given in return for a promise. Look out for the
exchange.




QUESTION: Issues with consideration when varying existing contract - ANSWER-- Variation to pay more
for an obligation in an existing contract between the parties (Promise to pay more). Standard rule is no
consideration.

- Variation to accept part payment of a debt under an existing contract (Promise to accept less).

Standard rule is no consideration.




QUESTION: Exceptions to the rule (promise to pay more) - ANSWER-Hartley v Ponsonby

- Is there extra? Is there something of value to enforce the extra payment?




Then...

, Williams v Roffey

- Must first identify no fresh consideration.

- Is there a practical benefit?




QUESTION: Exceptions to the rule (promise to accept less) - ANSWER-Promissory estoppel

- Equitable remedy (discretionary)

- Can make a promise binding even without consideration




QUESTION: Rules governing consideration - ANSWER-- Must not be past

- Must move from the promisee

- Need not be adequate

- Must be sufficient (real, tangible, valuable)




QUESTION: Types of Consideration - ANSWER-- Executed (promise to perform act in future)

- Executory (usually a reward - performs an act to fulfil a promise)

- Past (not enforceable Y)




QUESTION: Those who do not have capacity to enter a contract? - ANSWER-- Minors (remember there
are 2 exceptions)

- Due to lack of mental capacity

- Due to intoxication