OFFER
Define Offer
An offer is a definite promise by one party to be bound provided that certain specified terms are accepted. It is a proposal.
Give one rule regarding acceptance
Acceptance must be made while the offer is still in force.
Acceptance must be made by the offeree.
Acceptance is incomplete until received by the offeror.
Currie v Misa
What is the rule regarding domestic agreements
Not intended to be legally binding
who are minors
Persons under the age of 18
Give two communications that are not offers
-invitation to treat
- advertisement
-price estimates
-auction
What is the rue regarding cross offers
Cross offers do not amount to acceptance
Who must consideration move from
The promisee
what is one business communication that is not binding
1. mere puff
2. letter of comfort
3. letter of intent
4. collective agreements
Who is a patient
A Patient is defined under the Mental Health Act as a person who is suffering from or is suspected to be suffering from a mental disorder.
what is the case re COunter Offer
Hyde v Wrench
When is there acceptance if it was sent by email
During office hours acceptance takes place when the message is printed out not when it is read.
A message sent outside business hours should be ‘communicated’ when it is expected that it would be read, for example, at the next opening of business.
What is a executed consideration
Consideration is executed where the defendant’s promise is made in return for the performance of an act by the plaintiff. F
How can a business agreement be found to not be binding
By the inclusion of an express statement to that effect in the agreement.
WHat are two contracts that can be entered into by minors
contracts for necessaries and beneficial contracts for service
What is the rule regarding telephone or face-toface offer
In telephonic or face-to-face communications in which an offer is made, the offer lapses when the conversation terminates in the absence of a clear indication or inference that the offer remains open beyond the conversation.
What is the rule where acceptance is given to an answering machine
A telephone answering machine indicates that communication is not instantaneous; there is a delay between sending and receiving messages. It would then follow that the basic rules apply, that is, that acceptance must be communicated. Acceptance, therefore, would take place when the message is actually heard by the offeror.
Explain past consideration
Past consideration refers to where the defendant’s promise is subsequent to the plaintiff’s act and independent of it. Past consideration is no consideration at all.
What is the name of the case with the mother promised to take care of her daughter if she studied law
Jones v Padavatton
What must a drunken person prove to escape liability for a contract
(a) He was so drunk that he did not understand the nature of what he was doing; (b) The other party was aware of this.
What is the rule regarding communication of revocation of an offer
To be effective the revocation of an offer must be communicated to the offeree. If the revocation is embodied in a letter, it is communicated when the letter is received at the place of residence or business of the offeree.
If the revocation is not directly communicated to the offeree but it can be shown that the offeree was aware of the revocation prior to acceptance, the revocation will usually be effective. The communication of revocation may not necessarily be made by the offeror. It is enough that the offeror becomes aware of the revocation from a reliable source.
What is the postal acceptance rule
Acceptance becomes effective and the contract concluded at the moment the letter of acceptance is dropped into a mailbox, properly addressed and bearing sufficient postage.
Explain consideration must be sufficient but need not be adequate
This means that the consideration must have some legally enforceable value even though it may not reflect the true market value for the goods or services.
Give one case where a domestic agreement was found to binding
Merit v Merit- husband and wife separated and mortgage
Parker v Clarke- niece sold her house
Simpkins v pay- raffle tickets
what is the defence of illiterates
The defence of non est factum (it is not my deed). This allows an illiterate person to avoid a contract which he signed on the basis that he was labouring under a fundamental mistake as to the nature or content of the contract.