GRADE A+
Offer - (answer)The starting point of the contract
Communication - (answer)The offer must be communicated to the offeree
Definite Terms - (answer)The offer must be definite in its terms
Gibson v Manchester City Council - (answer)The council's letter was not an offer
because it stated they 'may be prepared' to sell him the house, it was not definite in
terms.
Invitation to Treat - (answer)An invitation to treat is not an offer, it is an invitation to
make an offer
Advertisement - (answer)An advertisement is generally an invitation to treat
Unilateral Contracts - (answer)Unilateral contracts are an exception to the advertising
rule
Goods in a Shop Window - (answer)Goods in a shop window are an invitation to treat
Lots at an Auction - (answer)Lots at an auction are an invitation to treat
Partridge v Crittenden - (answer)Crittenden placed an advert selling birds but could not
be prosecuted under the Protection of Birds Act because it was not an offer but an
invitation to treat.
Carlill v Carbolic Smoke Ball Co. - (answer)The advert stated anyone using the smoke
ball correctly who got flu would be given £100. This was a unilateral contract as it was
an offer to the whole world.
Fisher v Bell - (answer)The shop owner had displayed a flick knife with a price tag. He
was charged under the Offensive Weapons Act but the display was an invitation to treat
and not an offer.
British Car Auctions v Wright - (answer)The auctioneers were prosecuted for selling an
unfit vehicle but it was an invitation to treat so prosecution failed.
Bilateral Contract - (answer)The offeror makes a promise in exchange for an act by
another party
Mutual Promises - (answer)There is an exchange of mutual promises
,How an Offer Ends - (answer)An offer can end through revocation, rejection, lapse of
time, death, or acceptance.
Harvey v Facey - (answer)Harvey asked what the lowest accepted price would be and
tried to buy the farm for the stated price. He could not as it was a reply to the request,
not an offer.
Dickinson v Dodds - (answer)Dodds had offered his house for sale but withdrew the
offer. This was effective revocation.
Hyde v Wrench - (answer)Wrench offered to sell the farm for £1000 to Hyde. Hyde
replied with a counter-offer of £950 which Wrench rejected.
Acceptance - (answer)Once an offer has been accepted there is an agreement.
Positive Acceptance - (answer)Acceptance must be positive and unqualified - no 'ifs or
buts'.
Method of Acceptance - (answer)The offeror can require a specific method of
acceptance.
Felthouse v Brindley - (answer)The final letter stated 'if I hear no more I shall consider
the horse mine' but the court decided this could not be acceptance as there was silence.
Yates v Pulleyn - (answer)There was no acceptance as the offeror required recorded
delivery and the offeree sent it via ordinary post.
Acceptance by Conduct - (answer)The offer can be accepted through the offeree's
behaviour and conduct.
Acceptance by Post - (answer)Acceptance takes place at the moment the letter is
posted.
Adams v Lindsell - (answer)Lindsell offered some wool and required a reply in the
course of post.
Acceptance - (answer)Occurs when the offeror is aware of it.
Contract in Online Shopping - (answer)The contract is made when the buyer receives
an acknowledgement of their order by the seller.
Timeliness of Email - (answer)The email must be sent to the intended recipient and not
delayed.
, Thomas and Gander v BPE Solicitors - (answer)The acceptance email was received
after 6pm on a Friday night before a Bank Holiday and was not read until Tuesday
morning; the court did not consider 6pm to be outside working hours.
Essential Requirements of Contract - (answer)Consideration, Privity, Intention to create
legal relations.
Consideration - (answer)What is put forward by both parties to form a contract.
Adequacy of Consideration - (answer)Need not be adequate but must be sufficient.
Past Consideration - (answer)Is not good consideration unless there is an implication
that the task would be paid for at the time the task was requested.
Consideration Must Move From - (answer)The promisee.
Existing Duty - (answer)Performing an existing duty cannot be the consideration for a
new contract.
Part Payment of Pre-existing Debt - (answer)Promise to accept part payment in place of
a pre-existing debt is not consideration.
Chapelle v Nestlé - (answer)Nestlé customers could claim a song recording if they sent
in tokens from their chocolate wrappers; the wrappers counted as consideration despite
their low value.
Ward v Byham - (answer)Happiness is not consideration as it is not something that is
real in the terms of measured value.
Re McArdle - (answer)The promise to pay Mrs McArdle for work carried out came after
the work had been done and therefore could not be counted as consideration.
Lampleigh v Braithwait - (answer)Braithwait promised to pay Lampleigh £100 after he
had asked him to gain a royal pardon; it was implied that Lampleigh would be paid.
Tweddle v Atkinson - (answer)The groom could not sue the bride's father for payment
as he had not provided any consideration for the contract.
Collins v Godefroy - (answer)A policeman was promised payment to give evidence in
court, but this was not consideration as it was part of his duty.
Pinnel's Case - (answer)The payment of a lesser sum on the day the debt is due cannot
be in satisfaction of the greater debt.