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WorksheetsBilateral/Unilateral Contracts
Total questions: 14
Worksheet time: 20mins
What is a bilateral contract?
A bilateral contract is where only one party makes a promise to the other party. It does not include an exchange of promises.
A bilateral contract falls short of being a legally binding contract as it does not have the requisite intention.
A bilateral contract is where the parties make promises to each other. The contract gives rights to and places obligations on both parties.
A bilateral contract is a contract that is not condensed into writing and whereby only those terms expressly agreed are incorporated.
Carlil v Carbolic Smoke Ball Company Ltd [1893] 1 QB 256 CA provides an example of a bilateral contract.
True
False
What distinguished Carlil v Carbolic Smoke Ball Co Ltd [1893] QB 1 CA from an invitation to treat?
Select ALL answers that apply.
The words in the advert expressed an intention and did not amount to a promise.
It was an offer to anyone who performed the conditions named in the advertisement and by performing the conditions they were accepting the offer.
Mrs Carlil performed the use of the Carbolic Smoke Ball incorrectly and therefore it was only an invitation to treat.
The fact that they deposited £1000 with the bank showed the requisite intent and was not mere sales puff.
What steps do you have to take to revoke a unilateral contract?
The offeror does not have to inform the offerees, he is able to withdraw at any time.
The offeree must actively look for any revocation being made.
The offeror must take reasonable steps to bring the revocation of the offer to the attention of the offerees.
The offeror must tell each individual in person or via phone that the offer has been revoked.
Which of the following could give rise to a unilateral contract?
In return for Barry promising to run a marathon, Adnan will sponsor Barry £500.
In return for Barry completing a marathon, Adnan will sponsor Barry £500.
Neither of the above options are correct.
Both of the above options are correct.
What forms can a unilateral contract take?
Please select ALL that apply.
Unilateral contracts are where both parties make explicit promises to do something.
Unilateral contracts are where only one party makes a promise to do something.
A unilateral contract is where one party is in breach of the contract to the other party.
Nobody is under an obligation to perform the conditions in the offer.
Unilateral contracts tend to involve the offer of a reward if the conditions in the reward offer are satisfied by anyone who wishes to claim the reward. The wording of the reward offer makes it clear that no further negotiations or bargaining is required.
Which case established the postal acceptance rule?
Entores Ltd v Miles Far East Corpn [1955] 2 QB 327.
Hyde v Wrench (1840) 3 Beav 334
Brinkibon Ltd v Stahag Stahl und Stahlwarengesellschaft [1983] 2 AC 34
Adams v Lindsell (1818) 1 B & Ald 681
When have the courts decided that the postal acceptance rule does not apply?
Please select ALL that apply.
If the letter has been wrongly addressed.
When a term has been implied into the contract by statute.
Where the method has been excluded in the offer or it is expressly stated that the correspondence must be received.
When both parties live in close proximity to each other and posting would not be reasonable.
Electronic and instantaneous methods of communication.
True or false:
Generally, silence cannot amount to acceptance?
False
True
In which exceptional circumstances may an offer be accepted by silence?
Please select ALL that apply
If the offeree does not say anything but his conduct clearly indicates that he intends to accept the offer.
Where there has been previous dealings between the two parties.
Where the offeror specifies to the offeree that they need not communicate their acceptance as per Felthouse v Bindley(1862).
None of the above answers allow an offer to be accepted by silence.
Does the postal rule apply to electronic forms of communication?
Yes
No
In Entores Ltd v Miles Far East Corporation [1955] (Telex case), Lord Denning said in regards to communicating acceptance:
"Suppose, for instance that I shout an offer to a man across a river or courtyard but I do not hear his reply because it is drowned by an aircraft flying overhead"
Which of the following statements did he follow with?
"It is irrelevant that I have not heard his acceptance as the man has done everything in his power to communicate that acceptance to me."
"I must repeat the original offer to the man and then he must communicate his acceptance as it would be wholly unreasonable for me to assume that he heard the original offer."
"There is no contract at that moment. If he wishes to make a contract, he must wait til the aircraft is gone and then shout back his acceptance so I can hear what he says."
"Even though the aircraft drowned out the response to my offer, it is irrelevant as I do not require the man to accept as silence may constitute acceptance."
In the case of, The Brimnes [1974] 3 All ER 88 (CA), the question arose as to whether a notice of withdrawal sent by Telex had constituted communication of the withdrawal to the charterers.
In the judges finding in favour of the owners of the ship that the withdrawal had been effective, which factors did they consider to be most important?
Please select ALL that all apply.
That the charterers should be reasonably expected to answer all Telexes at any time of day as they were operating as a business.
The telex had been sent in ordinary business hours.
That the charterers member of staff (Mrs Sayce had negelected her duty and failed observe and attend to the telex sent by the shipowners.
The shipowners had attempted to communicate the withdrawal by others methods of communication. Even if they had not reached the charterers, they had done everything in their power.
When international companies are doing business, contracts are often concluded via instantaneous methods of communication.
Thinking about Brinkibon Ltd v Stahag Stahl Und Stahlwarenhandels-Gmbh [1983] how does the law treat acceptance in relation to cross-country agreements made by instantaneous methods of communication?
The contract was made as soon as the acceptance was sent.
The contract was made when the acceptance was brought to the attention of the offeror.
The contract was made when and where the acceptance was received.
The contract was made once the party in receipt of the acceptance sends a receipt to confirm they have received the correspondence.
