Contract Law Exam Questions With All Correct Detailed Answers

Contract Law Exam Questions With All Correct Detailed Answers Define contract - ANSWER- a legally binding agreement between two or more parties recognized as having legal consequences. What are the criteria for a valid contract? - ANSWER- Requires one party to make an offer and another party to accept. Define invitation to treat - ANSWER- Not an offer but an invitation to someone to make an offer. What are the requirements for an offer? - ANSWER- Has to be certain Terms of offer must be clear and definite without any ambiguity Case example for requirements for an offer - ANSWER- Gibson v Manchester Council Who can offers be made by? - ANSWER- Anyone, individuals, companies, notice or machines. Case examples for who can make offers - ANSWER- Thornton v Shoe Lane Parking How can offers be made? - ANSWER- Any method, including writing or verbally. (e.g. picking up an item and taking it to checkout) Who can an offer be made to? - ANSWER- Anyone, individuals, groups, companies, whole world (Carbolic Smoke Ball Co) What is established in case of Taylor v Laird? - ANSWER- Offers must be communicated. Person can't accept what they don't know. Why must offers still be in existence to be accepted? - ANSWER- Problem if no time limit agreed for acceptance / rejection. Problem if person making offer wants to revoke- revocation must be received before acceptance is made What are reasons why an offer can be terminated? - ANSWER- 1) Offer was already accepted or rejected 2) A counter-offer was placed (Hyde v Wrench) 3) The offer was revoked (Dickinson v Dodd’s) 4) Offer closed due to lapse of time, if no time limit set then offer remains open for reasonable amount of time 5) Death of person making offer as impossible to reach agreement BUT as long as contract doesn't involve personal service, death should not necessarily end offer 6) Offer was rejected What criteria must be met in order for an offer to be revoked? - ANSWER- Must be communicated (Rout ledge v Grant) If offered to whole world (Carbolic Smoke Ball) then there should be a time limit on offer which expires in reasonable time and revocation should be published same way offer was. What was established in Fisher v Bell? - ANSWER- Displays of goods in shop windows are not offers but invitations to treat. What was established in Pharmaceutical Society v Boots? - ANSWER- Goods on shelf constitute as an invitation to treat. The shop assistant chooses whether to accept the offer or not. What was established in Partridge v Crittenden? - ANSWER- Advert was an invitation to treat not an offer. What was established in Harvey v Facer? - ANSWER- Response to request for information is not an offer as there was no evidence of intention to make an offer. What was established in British Car Auctions v Wright? - ANSWER- There is no offer to sell but always an offer to buy. Auctions are an invitation to buy. What was established in Cargill v Carbolic Smoke Ball Co? - ANSWER- Reward posters are an invitation to treat not an offer. However, in this case it was an offer not invitation to treat. What is an acceptance of an offer? - ANSWER- A positive, unqualified and unconditional agreement to all terms by word or conduct. How do you accept an offer? - ANSWER- Can be accepted by any form provided communication to offered. However not by silence (Felt house v Bindley) Three ways to be aware of: 1) Conduct 2) Post 3) Electronically (e.g. email)