GDL Contract Law Exam With Correct Answers (A+)

GDL Contract Law Exam With Correct Answers (A+)


Smith v Hughes (1871) - ANSWER Agreement I - Objective Approach to agreement: The
law applies an objective test of intention, the reasonable man.



Gibson v Manchester City Council (1979) - ANSWER Agreement I - Certainty of Offer: An
offer must be clear and certain (i.e. not just an invitation to treat).



Partridge v Crittenden (1968) - ANSWER Agreement I - Intention to be bound -
Advertisements: The general rule regarding advertisements is that they are regarded as
statements inviting further negotiations or are invitations to treat.



Carlill v Carbolic Smoke Ball Co. (1893) - ANSWER Agreement I - Intention to be bound -
Advertisements - Exception to the general rule: It should be noted that the general rule
concerning adverts does not apply where the advertisement amounts to a unilateral
offer.the famous case.



Fisher v Bell (1961) - ANSWER Agreement I - Intention to be bound - Display of goods for
sale: The general rule is that price-marked goods displayed in a shop window are not an
offer for sale but an invitation to treat.



Spencer v Harding (1870) - ANSWER Agreement I - Intention to be bound - Invitations to
tender: The general rule is that an invitation to tender is an invitation to treat.



Harvey Investments v Royal Trust (1985) - ANSWER Agreement I - Intention to be bound
- Invitations to tender - Exceptions to the general rule: If an invitation to tender expressly
contains an undertaking to accept the highest or the lowest bid.



Payne v Cave (1789) - ANSWER Agreement I - Intention to be bound - Auction Sales: 1.
The auctioneer's request for bids is an invitation to treat and 2. Acceptance of the
bidder's offer will be indicated by the fall of the auctioneer's hammer.

, Hyde v Wrench (1840) - ANSWER Agreement I - Termination of an Offer - Rejection: A
rejection operates to terminate an offer from the date of communication to the offeree. A
purported acceptance of the offer on new terms may operate as a rejection of the offer
coupled with a counter-offer.



Stevenson Jacques v McLean (1880) - ANSWER Agreement I - Termination of an Offer -
Rejection - Distinguishing a counter-offer from a request for information: In this case it
was held that a mere enquiry so as to clarify the extent and terms of the offer was not a
counter-offer.



Ramsgate Victoria v Montefiore (1866) - ANSWER Agreement I - Termination of an Offer -
Lapse - Passage of time: Acceptance must be made within period prescribed by offeror
or within a reasonable period.



Bradbury v Morgan (1862) - ANSWER Agreement I - Termination of an Offer - Lapse -
Death of a party: Death of the offer will cause the offer to lapse.



Financings Ltd v Simon (1962) - ANSWER Agreement I - Termination of an Offer - Lapse -
Non-fulfilment of a condition: Where offeror makes the offer 'subject to' a
condition.Failure on the part of the offeree to fulfil the condition will prevent
acceptance.



Routledge v Grant (1828) - ANSWER Agreement I - Termination of an Offer - Revocation:
Offeror may retract his offer at anytime prior to acceptance.an offer cannot be revoked
after acceptance.



Byrne v Van Tienhoven (1880) - ANSWER Agreement I - Termination of an Offer -
Revocation: Communication of the revocation is necessary and takes effect upon the
instant it is received by the offer (postal rule does NOT apply).



Dickinson v Dodds (1876) - ANSWER Agreement I - Termination of an Offer - Revocation
- Indirect communication of revocation.