Contract 1-3

Question 1

What is an offer?

Answer 1

An expression of willingness to contract on certain terms, intended to be binding once accepted (Treitel).

Question 2

What elements are required for an agreement?

Answer 2

An offer (definite promise) by the offeror and acceptance by the offeree.

Question 3

How can an offer be made?

Answer 3

By letter, email, text, conduct, or other communication.

Question 4

How do courts assess intention to make an offer?

Answer 4

Objectively, using the reasonable person standard.

Question 5

Who can accept an offer?

Answer 5

Only the person to whom the offer is addressed.

Question 6

What is an invitation to treat?

Answer 6

A preliminary statement that invites negotiation but shows no intention to be bound.

Question 7

Are goods displayed in shops offers?

Answer 7

No, they are invitations to treat.

Question 8

Are advertisements generally offers?

Answer 8

No, they are invitations to treat.

Question 9

When can an advertisement be an offer?

Answer 9

When it is a reward advertisement (unilateral contract).

Question 10

What is the difference between bilateral and unilateral contracts?

Answer 10

Bilateral: promise for a promise. Unilateral: promise in return for an act.

Question 11

What is the auctioneer’s call for bids?

Answer 11

An invitation to treat.

Question 12

When is a sale completed at auction?

Answer 12

When the gavel falls.

Question 13

What is a reserve price?

Answer 13

The minimum price below which the item will not be sold.

Question 14

What does “auction without reserve” mean?

Answer 14

No minimum price; the highest bid must be accepted.

Question 15

What is an invitation to tender?

Answer 15

An invitation to treat.

Question 16

What is a tender submission?

Answer 16

An offer.

Question 17

When does a unilateral contract arise in tenders?

Answer 17

When the inviter promises to accept the lowest tender.

Question 18

What is acceptance?

Answer 18

An unqualified expression of assent to the terms of the offer.

Question 19

What is the effect of a counter-offer?

Answer 19

It destroys the original offer.

Question 20

How must acceptance be communicated?

Answer 20

By the offeree or an authorised agent.

Question 21

Can silence amount to acceptance?

Answer 21

No.

Question 22

What is the “battle of the forms”?

Answer 22

A situation where the last set of terms sent may prevail.

Question 23

What is the postal rule?

Answer 23

Acceptance is effective when posted, not when received.

Question 24

When does the postal rule apply?

Answer 24

If post is reasonable, properly addressed and stamped, and not excluded.

Question 25

When does the postal rule not apply?

Answer 25

If the offeror requires actual communication of acceptance.

Question 26

Can an offer be accepted after termination?

Answer 26

No.

Question 27

How can rejection occur?

Answer 27

Expressly or impliedly (e.g. counter-offer).

Question 28

When can an offer be revoked?

Answer 28

Any time before acceptance.

Question 29

What is an option contract?

Answer 29

Where consideration is given to keep an offer open.

Question 30

How must revocation be communicated?

Answer 30

It must be communicated; postal rule does not apply.

Question 31

How can public offers be revoked?

Answer 31

By reasonable notice, including publication.

Question 32

When does an offer lapse?

Answer 32

After a specified or reasonable time, depending on circumstances.

Question 33

How are contracts judged for certainty?

Answer 33

Objectively, considering context and surrounding factors.

Question 34

Are provisional agreements binding?

Answer 34

Yes, if parties intended to be bound.

Question 35

What are the requirements for a valid contract?

Answer 35

Offer, acceptance, consideration, and intention to create legal relations.

Question 36

Why is intention to create legal relations important?

Answer 36

Without it, an agreement is not legally binding.

Question 37

What are rebuttable presumptions?

Answer 37

Assumptions that apply unless proven otherwise.

Question 38

What is presumed in commercial agreements?

Answer 38

An intention to create legal relations.

Question 39

Can trivial commercial agreements be legally binding?

Answer 39

Yes.

Question 40

How can the presumption be rebutted?

Answer 40

By clear express statements (e.g. “binding in honour only”).

Question 41

What is presumed in domestic agreements?

Answer 41

No intention to create legal relations.

Question 42

When can domestic agreements be legally binding?

Answer 42

When facts show formality, seriousness, or express intention.

Question 43

What is consideration?

Answer 43

Something of value given in return for a promise.

Question 44

What types of consideration exist?

Answer 44

Executory (promise for promise) and executed (act for promise).

Question 45

Is adequacy of consideration required?

Answer 45

No, only sufficiency.

Question 46

What is not valid consideration?

Answer 46

Natural love and affection or vague promises.

Question 47

What is executory consideration?

Answer 47

A promise exchanged for a promise.

Question 48

What is executed consideration?

Answer 48

An act performed in return for a promise.

Question 49

Is past consideration valid?

Answer 49

Generally no.

Question 50

When is past consideration valid?

Answer 50

If done at the promisor’s request, expected to be paid for, and legally enforceable if promised in advance.

Question 51

What is required for a binding contractual variation?

Answer 51

Agreement, consideration, and intention to create legal relations.

Question 52

Is performing an existing duty valid consideration?

Answer 52

Generally no.

Question 53

What is the exception?

Answer 53

If the promisee exceeds their duty or confers a practical benefit.

Question 54

What did *Williams v Roffey Bros* establish?

Answer 54

Practical benefits can amount to valid consideration.

Question 55

Is part payment of a debt valid consideration?

Answer 55

No, at common law.

Question 56

What is the common law exception?

Answer 56

Providing something different (e.g. early payment or goods).

Question 57

What is promissory estoppel?

Answer 57

An equitable doctrine preventing enforcement of strict legal rights.

Question 58

What are the requirements for promissory estoppel?

Answer 58

A promise, reliance, and inequity in going back on it.

Question 59

Can promissory estoppel be used as a cause of action?

Answer 59

No, only as a defence.

Question 60

Can rights resume after promissory estoppel?

Answer 60

Yes, with reasonable notice (for ongoing obligations).