Contract 1 - agreement

Question 1

What 3 things are required to form a binding contract?

Answer 1

• Offer & acceptance 🤝
• ICLR 📄
• Consideration 💵

Question 2

What’s the difference between a bilateral and unilateral contract?

Answer 2

• Bilateral: both parties assume an obligation to each other 👉👈
• Unilateral: one party makes an offer in terms which call for an act to be 👈performed by one or more other parties

Question 3

What are the requirements for a valid offer?

Answer 3

1. Clear & certain 🔍
2. Display an intention to be bound (unequivocal acceptance) 📄💡

Question 4

What is an invitation to treat and 5 examples of it?

Answer 4

The 1st step in negotiations that can’t be accepted to form a binding contract
1. Ads (not where there is a unilateral offer) 🎥
2. Displays of goods 🎁
3. Invitation to tender 👀👤
4. Auctions 👨‍⚖️
5. Websites 💻

Question 5

When is agreement made for self-service shops?

Answer 5

Offeror = customer
Offeree = storekeeper
Agreement made when scanned through

Question 6

When will an invitation to tender NOT be treated as an invitation to treat?
👤📄

Answer 6

• Where the ITT expressly contains an undertaking to accept the highest or lowest bid 👨‍⚖️
• It’s a form of unilateral contract 👈

Question 7

When would there be a binding contractual obligation to consider tenders?

Answer 7

• Tender solicited from specified parties known to them; 👋
• absolute deadline for submission; 📅
• absolute conditions for submission 📄

Question 8

What happens with a ‘without reserve’ auction where the auctioneer refuses to sell to the highest bidder?

Answer 8

• Could be sued for breach of unilateral contract: promise auction is without reserve 👈
• Highest bona fide bidder entitled to damages but NOT the goods (as this was dictated by a bilateral contract) 💷

Question 9

How can an offer come to an end?

Answer 9

1. Rejection - counter-offer seen as a rejection 🤬
2. Lapse - not in time prescribed or not within a reasonable time ⏱️
3. Revocation - any time before acceptance upon actual notice of it reaching the offeree (if by post, moment received by offeree) 📄🗑️

Question 10

For unilateral contracts, when can revocation take place?

Answer 10

• Prior to completion of completed act

But..
- For ones made to the whole world, it’s effective where offeror takes reasonable steps to bring revocation to attention of all who may have read it 🌎👣
- Where it’s been partly performed & they are willing/able to complete, revocation not effective 🫥❌

Question 11

What are the requirements for valid acceptance?

Answer 11

1. Only offeree can accept 🫵
2. Acceptance is unqualified - mirror image ☺️
3. Valid method (if method prescribed) 📝
4. Communicated to offeror - effective from time communicated: for post, time it was properly posted; for instantaneous means, when received by offeror 📮

Question 12

When does the postal rule apply?

Answer 12

Where acceptance delayed/lost in post acceptance applies from when the acceptance is posted, not when it reaches the offeror

Does Not Apply:

• disapplied by offeror 🙅
• if not contemplated post would be used; 🥴
• incorrectly addressed; 📩
• letters revoking offers; 😬

Question 13

If acceptance was not received and the offeree was at fault, what is the consequence? And if offeror at fault? And if nobody at fault?

Answer 13

Offeree: no contract
Offeror: contract prevails
Nobody: no contract