CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

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Answers guide


Chapter 2: Offer and acceptance


Question 1


  • Introduce the idea of Petunia making an offer and acceptance in
    forming a binding contract in shops.

  • Explain the ‘shopping’ principles: display is invitation to treat,
    customer makes the offer, seller accepts – Fisher v Bell,
    Pharmaceutical Society v Boots.

  • Discuss exceptions – Carlill v Carbolic Smoke Ball Company, Esso v
    Commissioners of Customs and Excise.

  • Apply the shopping principle to Washwell and the exceptions to the
    promotional campaign.

  • Consider the possibility of revocation – Byrne v Van Tienhoven, Shuey
    v US and apply this to the iron incident.

  • Explain the ‘reward’ cases, especially R v Clarke – acceptance in
    ignorance of the offer – and apply this to Petunia and the watch.

  • Consider what the outcome may be and whether it is fair / satisfactory.


Question 2

(a)Introduce the idea of offer and acceptance needed to form a binding
contract, consideration being Bookworms’ promise to supply certain
books and Enrico’s promise to pay. Back up your arguments with cases.
Discuss which actions amount to an invitation to treat and where the
offer and acceptance may have taken place.


  • Discuss possible terms of the contract: express one, terms which may
    have been implied at common law and terms implied by statute.

  • Consider whether there a breach of any term (do not discuss what kind
    of term, as this is the material for part (b).

  • Consider possible remedies: termination or damages (depends on kind
    of term – do not go too far into this); equitable remedies do not apply
    here. Explain the provisions of the Distance Selling Regulations
    (cooling off period).


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