PGDL CONTRACT A - CASELAW AND RELEVANT
STATUTES
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
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
STATUTES
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
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
