PGDL Contract A - Caselaw and relevant
statutes. Exam Questions And Answers
(Guaranteed A+)
Storer v Manchester City Council - Answer✔Offer and acceptance, an offeror must show an
intention to be legally bound; this intention is decided by an objective test, 'I will send you the
agreement'
Gibson v Manchester City Council - Answer✔Offer and acceptance, offers must be clear and
certain, tenant received a letter saying 'may be prepared to sell' but was not able to purchase his
house
Partridge v Crittenden - Answer✔Offer and acceptance, advertisements are invitations to treat
Carlill v Carbolic Smoke Ball Co - Answer✔Offer and acceptance, a binding contract is formed
when the offeror issues an unilateral offer with a clear prescribed act, and when they display a
clear intent to be bound; the need for communication of acceptance by the offeree to the offeror
with unilateral offers is waived, unilateral offer with influenza smoke balls
Fisher v Bell - Answer✔Offer and acceptance, price-marked goods displayed in a shop window
are not an offer for sale but an invitation to treat
Spencer v Harding - Answer✔Offer and acceptance, invitations to tender are generally
invitations to treat
Harvela Investments v Royal Trust Co of Canada - Answer✔Offer and acceptance, if an
invitation to tender expressly contains an undertaking to accept the highest or lowest bid, it is an
offer not an invitation to treat
Blackpool & Fylde Aero Club v Blackpool Borough Council - Answer✔Offer and acceptance,
an invitation to tender contractually obliges the invitor to consider tenders where the tenders
were solicited by specified parties known to the requesting party; there was an absolute deadline
for submission; the party requesting tenders had laid down absolute conditions for submission
Payne v Cave - Answer✔Offer and acceptance, the auctioneer's request for bids is an invitation
to treat; the offeror may revoke his offer any time before acceptance
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Warlow v Harrison - Answer✔Offer and acceptance, if there is no 'reserve price' in an auction,
the auctioneer may be sued for breach of contract if he refuses to sell to the highest bona fide
bidder (ober)
Hyde v Wrench - Answer✔Offer and acceptance, a counter offer terminates the original offer;
acceptance must be unqualified and correspond exactly with the terms of the original offer (the
mirror image rule)
Stevenson, Jacques & Co v McLean - Answer✔Offer and acceptance, questions or requests for
clarifications concerning an offer are requests for further information and do not nullify the
original offer
Financings v Stimson - Answer✔Offer and acceptance, failure by the offeree to fulfil the
condition (express or implied, set by offeror) will prevent acceptance. There was an implied
condition that the car would be in the same condition at the time of acceptance as at the time of
the offer.
Dickinson v Dodds - Answer✔Offer and acceptance, if the offeror agrees to keep the offer open
for a stipulated period, he is not bound by this unless the offeree gives something of value in
return
Great Northern Railway Company v Witham - Answer✔Offer and acceptance, unilateral offers
may be revoked at any time prior to the completion of the required act
Errington v Errington & Woods - Answer✔Offer and acceptance, if the offeree has partially
performed the required act in a unilateral offer and is willing and able to complete, the unilateral
offer may not be revoked
R v Clarke - Answer✔Offer and acceptance, acceptance must be made in response to / with
knowledge of the offer
Manchester Diocesian Council for Education v Commercial and General Investments -
Answer✔Offer and acceptance, the offeror may prescribe a mode of acceptance that the offeree
must follow, but the offeror must make it clear that no other form of acceptance would be
binding
Tinn v Hoffman - Answer✔Offer and acceptance, a mode of acceptance 'no less advantageous to
the offeror' will be binding if the offeror does not provide a mandatory mode of acceptance
Felthouse v Bindley - Answer✔Offer and acceptance, the offeror may not stipulate he will take
silence as acceptance that binds the offeree
Adams v Lindsell - Answer✔Offer and acceptance, the postal rule - where post is deemed to be a
proper means of communication, acceptance takes effect from the moment the letter of
acceptance is properly posted
Powell v Lee - Answer✔Offer and acceptance, acceptance may be communicated by an
authorised third party
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