Contract Law PGDL 103 CORRECTLY ANSWERED QUESTIONS LATEST UPDATE
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Course
NURSING 706
Institution
NURSING 706
Contract Law (PGDL) 103 CORRECTLY ANSWERED QUESTIONS LATEST UPDATE
What are the two main types of contract?
What are the main invitation to treat situations?
What is the postal rule?
Can the offeror stipulate the method of acceptance?
The general rule is that acceptance has no effect until com...
Contract Law (PGDL) 103 CORRECTLY
ANSWERED QUESTIONS LATEST UPDATE
1). What are the two main types of contract?
Ans: Bilateral - A promise for a promise
Unilateral - A promise in return for an act
2). What are the main invitation to treat situations?
Ans: - Advertisement
- Self-service and shop windows
- Auctions (with reserve)
- Invitations to tender
- Mere statements of price
3). What is the postal rule?
Ans: - Acceptance occurs when the letter is posted not when it is received
- Also applies if the letter is never received (proof of postage)
- Postal rule can be ousted in the offer
- Only applies to acceptance not revocation
4). Can the offeror stipulate the method of acceptance?
Ans: - Yes, but they must CLEARLY STATE that only the stipulated method will be
accepted.
- Remember an equally expeditious method to that stipulated should be sufficient (Timm
v Hoffman)
5). The general rule is that acceptance has no effect until communicated. however, what are
the other considerations?
Ans: - Silence cannot amount to acceptance
- Acceptance in unilateral contracts (no need to communicate. Performance)
- Acceptance by conduct (may be inferred by conduct without being expressly
communicated)
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, 6). Counter offer v request for information
Ans: Counter offer (Hyde v Wrench)
- Destroys previous offer, rendering it incapable of acceptance
- role of offeror and offeree swaps
Request for information (Stevenson, Jacques and Co v McLean)
- Does not attempt to vary the terms of offer
- The previous offer remains open for acceptance
7). Types of termination
Ans: - Rejection
- Revocation (think about communication in bilateral and unilateral)
- Lapse in time
- Failure to comply with condition
- Death of one of the parties (think about offeror v offeree)
8). Acceptance must be...
Ans: - In response to the offer
- Unqualified
- Communicated (think about third party communication)
9). When is intention to create legal relations presumed?
Ans: - In commercial agreement it is presumed that there is an intention
- In a social/domestic agreement it is not presumed that there is an intention
10). How can the presumption that the parties have an iclr be rebutted?
Ans: Wording that the parties do not intend to create legal relations that is clear and
unambiguous
11). What is consideration?
Ans: The value given in return for a promise. Look out for the exchange.
12). Issues with consideration when varying existing contract
Ans: - Variation to pay more for an obligation in an existing contract between the
parties (Promise to pay more). Standard rule is no consideration.
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, - Variation to accept part payment of a debt under an existing contract (Promise to
accept less).
Standard rule is no consideration.
13). Exceptions to the rule (promise to pay more)
Ans: Hartley v Ponsonby
- Is there extra? Is there something of value to enforce the extra payment?
Then...
Williams v Roffey
- Must first identify no fresh consideration.
- Is there a practical benefit?
14). Exceptions to the rule (promise to accept less)
Ans: Promissory estoppel
- Equitable remedy (discretionary)
- Can make a promise binding even without consideration
15). Rules governing consideration
Ans: - Must not be past
- Must move from the promisee
- Need not be adequate
- Must be sufficient (real, tangible, valuable)
16). Types of consideration
Ans: - Executed (promise to perform act in future)
- Executory (usually a reward - performs an act to fulfil a promise)
- Past (not enforceable Y)
17). Those who do not have capacity to enter a contract?
Ans: - Minors (remember there are 2 exceptions)
- Due to lack of mental capacity
- Due to intoxication
*The latter two are still binding unless they can prove they didn't know what they were
doing and the other party knew that was the case
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