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Com Law 201 Test Cases questions with solutions
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Com Law 201 Test CasesWhat are the facts of the Harvey v Facey case? - ANSWER- X was selling property.
- Y telegraphed, "will you sell us property? Telegraph lowest cash price - answer paid!"
- X replied, "lowest price for property is 900 pounds."
Court held there was no contract because X didn't offer the property. X implied "if we do
sell", as opposed to "we do want to sell".
What is the underlying principal in the Harvey v Facey case? - ANSWERWhat looks like
an offer may not be an offer because it is ambiguous.
Which case explains that an offer may not actually be an offer because it is ambiguous?
- ANSWERHarvey v Facey.
What are the facts of the Carlill v Carbolic Smoke Ball Company case? - ANSWER-
Company advertised their smoke ball and claimed that if you smelt it, you wouldn't catch
influenza. If you were to catch influenza, you would be paid 100 pounds.
- Company deposited 1,000 pounds to bank to pay off rewards.
- Carlill became sick and seeked reward.
Court held it was not an invitation to treat; it was an offer because the company
INTENDED to pay rewards (by depositing 1,000 pounds to bank).
What are the two underlying facts from the Carlill v Carbolic Smoke Ball Company
case? - ANSWER(1) An offer (as opposed to an invitation to treat) may be made by an
advertisement if the offeror's intention to be bound on acceptance is clear; and
(2) An offeree doesn't need to communicate acceptance when there is a unilateral
contract; acceptance takes place simply by performance.
Which case represents the two underlying facts:
(1) An offer (as opposed to an invitation to treat) may be made by an advertisement if
the offeror's intention to be bound on acceptance is clear; and
(2) An offeree doesn't need to communicate acceptance when there is a unilateral
contract; acceptance takes place simply by performance. - ANSWERCarlill v Carbolic
Smoke Ball Company.
What are the facts from the Hyde v Wrench case? - ANSWER- X offered to sell property
to Y for $1,000.
- Y made a counter-offer of $950.
- Y later then went to accept the original offer of $1,000.
, Court held that the original offer was terminated because of a counter-offer being made.
What is the underlying principal from the Hyde v Wrench case? - ANSWERA counter-
offer simultaneously terminates the offer (by rejection) and makes a new offer.
Which case explains the following underlying principal:
A counter-offer simultaneously terminates the offer (by rejection) and makes a new
offer. - ANSWERHyde v Wrench.
What are the facts of the Stevenson Jacques v McLean case? - ANSWER- X was
selling iron at 40s per ton.
- Y wrote to X stating he would accept for 40s per ton and delivery over two months, but
if not, the longest limit they could have.
- X didn't reply and sold iron to somebody else.
- Y later accepted the original offer.
Court held that Y's reply was not a counter-offer, but it was a request for more
information and that offer was still on the table.
What is the underlying principal of the Stevenson Jacques v McLean case? -
ANSWERWhere a response to an offer is a request for more information, and not a
counter-offer, then the offer remains open to be accepted.
Which case explains the following principal:
Where a response to an offer is a request for more information, and not a counter-offer,
then the offer remains open to be accepted. - ANSWERStevenson Jacques v McLean.
What are the facts of the McMahon v Gilberd & Co Ltd case? - ANSWER- Company
selling soft drinks offered a 'reward' for each returned bottle.
- Offer made to individual consumers and retailers.
- A scrap and bottle dealer sued the company for the reward.
Court held the offer was for consumers and retailers which didn't include the scrap and
bottle dealer.
What is the underlying principal of the McMahon v Gilberd & Co Ltd case? -
ANSWEROnly the intended offeree can accept the offer.
Which case explains that only the intended offeree can accept the offer? -
ANSWERMcMahon v Gilberd & Co Ltd.
What is the underlying principal of the Holwell Securities v Hughes case? -
ANSWERThe postal rule will not apply if the offeror excludes the postal rule.
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