Max's Legal Refresher - Contract Law (I)

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1. Which one is NOT true in respect of counter-offers?

  • A counter-offer is implied rejection, which destroys original offer (Hyde)
  • Where a counter-offer is accepted then its terms become the terms of the contract (A Davies & Co)
  • A counter-offer is akin to a request for info, in that it does not affect or terminate offer (Stevenson)
  • In a battle of forms, a court is likely to decide terms are based on the final offer made and accepted (see Brogden)
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Other questions in this quiz

2. Which is NOT true regarding liability in agency relationships?

  • If apparent authority, 3rd party contracts with the agent, and agent can sue on behalf of principal
  • Agent will bind principal when acting with authority (of either kind)
  • Agent will not bind principal when acting outside of authority, unless principal ratifies
  • Where no authority, 3rd party can sue agent for breach of warranty of authority, i.e. agent’s unilateral contract saying has the authority of the principal

3. Definition of "promissory estoppel"?

  • If one party makes promise to forgo a legal right, and other acts on it, the other has a defence to any claim by the promisor which is inconsistent with that promise (High Trees)
  • The precluding of a party, in certain circumstances, from proving in litigation particular facts or matters which, if proved, would assist him to succeed as plaintiff [now claimant] or defendant in an action (Thoday v Thoday)
  • Equitable remedy whereby contract is set aside and parties returned to pre-contract positions (PLC)
  • An equitable remedy in which a court orders a party to perform, or refrain from performing, a particular act (PLC)

4. Past conduct is not normally good consideration (Chitty on Contracts). Which one is NOT a requirement of any exception to this rule?

  • Payment / benefit must have been legally enforceable if promised in advance, i.e. must meet usual requirements for agreement & intention (Roscorla)
  • Parties understood the act was to be rewarded somehow (Casey’s Patents)
  • One party promised that it would not enforce its strict legal rights against the other.
  • Act was done at promisor's request (Lampleigh v Brathwait)

5. Definition of "offer"?

  • Situation that arises when businesses exchange communications with a view to making a contract, and each prospective party attempts to incorporate its own standard terms into the contract. (PLC)
  • Expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed. (Treitel on Contract Law)
  • Invitation to negotiate which displays no intention to be bound at that particular moment. (PLC)
  • Final and unqualified expression of assent. (Treitel on Contract Law)

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