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Return to Contract Law: Text, Cases, and Materials 10e student resources
Chapter 3 Self-test questions
Quiz Content
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The courts generally attempt to analyse all contracts in terms of offer and acceptance. This approach has been the subject of some criticism. In which of the following cases is the judge particularly critical of the general approach?
Lord Diplock in
Gibson
v
.
Manchester City Council
[1979] 1 WLR 294
correct
incorrect
Lord Denning in
Gibson
v
.
Manchester City Council
[1978] 1 WLR 520.
correct
incorrect
Bridge LJ in
Butler Machine Tool Co
v
.
Ex-Cell-O Corporation
[1979] 1 WLR 401.
correct
incorrect
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To find a valid contract, the courts require an offer, that is clear in its terms, is capable of being accepted, and has been accepted. Which of the following types of contract fits most uncomfortably into the traditional contractual structure outlined here?
A multi-party contract
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A unilateral contract
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A collateral contract
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A standard form contract
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'The existence of an offer depends on the intention of the parties.' Given the courts' interpretation of offers, how might this statement be qualified?
In the case of unilateral contracts, the existence of an offer is determined independently of the intention of the party making the statement.
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The courts are not concerned to ascertain the subjective intention of the parties, therefore their true intention is not decisive.
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The party making the statement may not have had in mind the distinction between an offer and an invitation to treat. As a consequence, his/her understanding of the statement may not fall squarely into one category or the other.
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None of the above
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With reference to the formation of a contract, what is an 'invitation to treat'?
An offer by one party that results in a contract upon acceptance by a second party.
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An invitation to certain members of the public to submit offers, which clearly evinces an intention to take into consideration all offers submitted by a particular deadline.
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A statement welcoming the submission of offers without any legal guarantee that a contract will result.
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A counter-offer made in response to an offer and suggesting a contract on modified terms.
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Which of the following statements could apply to the contractual status of a restaurant menu?
A menu is an offer by the restaurant which is accepted by the customer when he/she orders.
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A menu is an invitation to treat by the restaurant. The customer's order is therefore an offer to buy, which may be accepted or rejected.
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It depends on whether the menu is inside or outside of the restaurant.
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There is no case authority on the contractual status of a menu.
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A 'battle of the forms' occurs where both buyer and seller use standard forms and both insist that their relationship is governed by their own standard conditions. In these circumstances, two main approaches have been applied. One is to deny the existence of a contract on the basis that there is no true agreement between the parties. The other is to consider the last set of forms sent to be decisive, the terms of which will govern the contract. Which of these approaches was adopted in
Butler Machine Tool Co
v
.
Ex-Cell-O Corporation
[1979] 1 WLR 401?
The first - no contract was found.
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The second - the parties were said to have agreed on a set of terms.
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Does an invitation to tender, followed by the simple submission of a tender, ever result in the creation of a binding contract between the invitor and the bidder?
Yes – always.
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Yes – sometimes.
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No – never.
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Which of the following is
not
required in order to find a valid acceptance of an offer?
Correspondence between the terms of the offer and the terms of the acceptance
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Communication of the acceptance to the offeror whilst the offer is still valid
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Oral or written confirmation of acceptance
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Nexus between the offer and the acceptance
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TRUE/FALSE: Acceptance by conduct during the validity of an offer is the only exception to the general requirement that acceptance must be communicated.
True
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False
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Intending to redevelop the local playgrounds, Redburgh County Council places the following advertisement in a local newspaper: "Tenders invited by the Council for the redevelopment of public playgrounds on the East side. Standard forms may be collected from the Town Hall and should be returned sealed in the envelopes provided by 3pm on 20
th
August." Playpen Plus submits the lowest tender by the required time, but the mailbox is not checked and the Council wrongly considers that the bid has arrived late. The contract is subsequently awarded to Flairground, the second lowest bid which they considered complied with the deadline. Which of the following arguments will
not
help Playpen Plus?
County councils, as public authorities, are bound to comply with certain common law administrative procedures in the fulfilment of their duties.
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The existence of "clear, orderly and familiar procedure" (standard forms and sealed tender) gives us reason to believe that the Council are under a binding contractual obligation to consider all timely tenders.
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The mere insertion of a closing date and time endorses the reasonable inference that timely offers will be considered.
correct
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Whilst on a skiing holiday in Alpe d'Huez, Adam loses his new ski goggles, poles and skis in a failed jump. Hoping to recover them before the end of the week, he places a notice in a local ski-hire shop window. It offers a substantial reward to anyone finding and returning to his hotel one or more of the lost items. Determine in each case whether the reward-seeker may enforce Adam's promise. Assume that the issue is governed by English law:
Bronwen, who is staying at the same hotel as Adam, finds a pair of abandoned goggles whilst out skiing the next day and takes them back to the hotel receptionist. There she is informed that they probably belong to another hotel resident, Adam. Bronwen returns the goggles to him personally, but is rather annoyed a few days later to find that a reward was available.
Yes—Bronwen can enforce the promise against Adam.
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No—Bronwen cannot enforce the promise against Adam.
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Whilst on a skiing holiday in Alpe d'Huez, Adam loses his new ski goggles, poles and skis in a failed jump. Hoping to recover them before the end of the week, he places a notice in a local ski-hire shop window. It offers a substantial reward to anyone finding and returning to his hotel one or more of the lost items. Determine in each case whether the reward-seeker may enforce Adam's promise. Assume that the issue is governed by English law:
A few days later, Chris sees Adam's notice whilst on ski-rescue patrol duty. He decides to spend his next three afternoons off searching for the lost items which he seems to remember having stumbled across a few days earlier. He eventually uncovers the skis, and is on his way down the slopes back to the hotel when he is stopped by Adam. Adam thanks him for his help, but informs him that the reward is no longer available.
Yes—Chris can enforce the promise against Adam.
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No—Chris cannot enforce the promise against Adam.
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incorrect
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Whilst on a skiing holiday in Alpe d'Huez, Adam loses his new ski goggles, poles and skis in a failed jump. Hoping to recover them before the end of the week, he places a notice in a local ski-hire shop window. It offers a substantial reward to anyone finding and returning to his hotel one or more of the lost items. Determine in each case whether the reward-seeker may enforce Adam's promise. Assume that the issue is governed by English law:
The day after the notice goes up in her shop, Daniela, the ski-hire manager, finds the lost pair of ski-poles amongst her stock. She promptly forgets about them. Returning from a few days off (during which she has left a deputy in charge of the hire shop), Daniela remembers the lost ski-poles. Hoping to catch Adam before he leaves, she rushes to his hotel early the next morning before work. Adam thanks her for the poles but informs her that the removal of the notice has brought to an end the offer of reward. On returning to her shop, Daniela finds the notice has indeed been removed during her absence.
Yes—Daniela can enforce the promise against Adam.
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No—Daniela cannot enforce the promise against Adam.
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A pig farmer sends off a letter (R) to a butcher revoking his earlier offer to sell the butcher 10 pigs. The post is the only obvious means of communication in his stranded countryside position. A few days later, he receives a letter (A) from the butcher, which purports to accept his original offer. By this time, the butcher has received the revocation letter (R). Assuming the farmer's revocation is ineffective, which of the following statements is true?
Letter (A) has been hand-delivered by the butcher himself.
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The farmer's original offer had stipulated that 'any acceptance must be by notice in writing'.
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Letter (A) varies considerably the terms of the original offer.
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Letter (A) is posted before letter (R) is received.
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Under certain circumstances the postal rule may be displaced by the requirement of actual communication. In which of the following cases will the postal rule still take priority over the general requirement that acceptance be communicated?
The letter of acceptance is not properly addressed through some fault of the sender.
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The offer expressly or impliedly displaces the postal rule.
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The offer is made by instantaneous communication and it would be unreasonable to use other means to communicate acceptance.
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The letter of acceptance is delayed in the post.
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