ACCA law chpt 2

What was the rule established in Carlill v Carbolic Smoke Ball Co (1893) regarding offers?

• An offer can only be made to specific individuals.

• An offer can be made to the world at large, and performance of the conditions is acceptance of that offer.

• An offer must be communicated in writing to be valid.

• Silence can amount to acceptance of an offer.

Answer explanation

The case of Carlill v Carbolic Smoke Ball Co established that an offer can be made to the public, and acceptance occurs through the performance of the specified conditions, not just by communication.

What is the legal principle established in Harris v Nickerson (1873) regarding auction advertisements?

• Auction advertisements are binding offers.

• Auction advertisements are invitations to treat, not binding offers.

• Auction advertisements must include a reserve price to be valid.

• Auction advertisements are considered contracts once published.

Answer explanation

The legal principle in Harris v Nickerson (1873) establishes that auction advertisements are invitations to treat, meaning they invite offers but are not binding offers themselves.

In Hyde v Wrench (1840), what happens when a counter-offer is made?

• The original offer remains valid.

• The counter-offer automatically accepts the original offer.

• The counter-offer rejects the original offer, and it cannot be accepted later.

• The counter-offer creates a binding contract.

Answer explanation

In Hyde v Wrench, a counter-offer effectively rejects the original offer, meaning it cannot be accepted later. This principle clarifies that once a counter-offer is made, the original offer is no longer valid.

What was the rule established in Felthouse v Bindley (1862) regarding silence in contract law?

• Silence can amount to acceptance of an offer.

• Silence cannot amount to acceptance of an offer.

• Silence is considered a counter-offer.

• Silence automatically creates a binding contract.

Answer explanation

In Felthouse v Bindley (1862), the court ruled that silence cannot amount to acceptance of an offer. This means that a party cannot be bound by a contract simply by remaining silent in response to an offer.

What principle was implied in Byrne v Van Tienhoven (1880) regarding revocation of offers?

• Revocation of an offer must be communicated before acceptance becomes effective.

• Revocation of an offer is effective immediately upon being sent.

• Revocation of an offer does not need to be communicated.

• Revocation of an offer is valid only if made in writing.

Answer explanation

In Byrne v Van Tienhoven, it was established that revocation of an offer must be communicated to the offeree before they accept it. This means that an offer remains valid until the offeree is informed of its revocation.

How is consideration defined in Dunlop Pneumatic Tyre Co v Selfridge (1915)?

• Consideration is the promise to perform a future act.

• Consideration is the price for which the promise of the other is bought.

• Consideration is the mutual agreement between parties.

• Consideration is the legal obligation to fulfill a contract.

Answer explanation

In Dunlop Pneumatic Tyre Co v Selfridge (1915), consideration is defined as the price for which the promise of the other is bought, emphasizing that it must have value in the eyes of the law.

In the case of Chappell & Co v Nestlé (1960), what was considered sufficient consideration?

• Money only

• Money and 3 chocolate wrappers

• A promise to pay later

• Extra protection during a strike

Answer explanation

In Chappell & Co v Nestlé, the court ruled that the combination of money and 3 chocolate wrappers constituted sufficient consideration, as the wrappers had a tangible value and were part of the contractual agreement.

What principle was established in Thomas v Thomas (1842) regarding consideration?

• Consideration must be adequate

• Consideration with real (though small) value is sufficient

• Past consideration is valid

• Extra service beyond a statutory duty is good consideration

Answer explanation

In Thomas v Thomas (1842), the court established that consideration does not need to be adequate, but must have some real value, even if small. Thus, 'consideration with real (though small) value is sufficient' is the correct principle.

In Re McArdle (1951), why was the promise to pay for work done on a house not valid consideration?

• The work was not completed

• The promise was made before the work was done

• Past consideration is not valid

• The payment was insufficient

Answer explanation

In Re McArdle (1951), the promise to pay for work done was not valid consideration because it was based on past consideration, which is not legally enforceable. The work was completed before the promise was made.

What rule was established in Glasbrook Bros v Glamorgan CC (1925) regarding extra service?

• Extra service beyond a public/statutory duty is good consideration

• Performing an existing contractual duty is good consideration

• Past consideration is valid

• Consideration must be adequate

Answer explanation

In Glasbrook Bros v Glamorgan CC (1925), the court established that providing extra service beyond a public or statutory duty constitutes good consideration, validating the agreement made.