Business Law

Contract Tutorial Sheet #1

In groups of 2 do the following:

Using the priinciples of law for Offer and Acceptance. (Review your principles in the textbook
and lecture notes)
1. Prepare a case scenario showing a valid offer
2. Prepare a case scenario showing an invitation to treat
3. Prepare a case scenario showing an offer being terminated by death
4. Prepare a case scenario showing an offer being terminated by lapse of time
5. Prepare a case scenario showing an offer being terminated by counteroffer
6. Prepare a case scenario showing an offer being terminated by revocation
7. Prepare a case scenario showing a valid offer and a valid acceptance using the general
principles for acceptance
8. Prepare a case scenario showing a valid offer and a valid acceptance using the postal rule
Example of #1.
John wrote to Brian informing him that he was selling his 2000 Honda CRV for $700,000.00.
Brian is to let him know by telephone on or before Monday September 11, 2017 by 3pm if he
will purchase the car. Brian received the letter on Monday September 5, 2017.
The offer to Brian was valid as the terms were clearly stated, they were communicated to Brian
in writing by John and it showed an intention to do business.

Further work to complete individually

Summarise the cases below. Before summarizing explain the legal principles they
support.

Carlill v. Carbolic Smoke Ball Co. Ltd.

Harvey v. Facey
Fisher v. Bell
Partridge v. Crittenden
Pharmaceutical Society of Great Britain v. Boots Cash Chemists
Hyde v. Wrench
Stevenson v. McLean
Ramsgate Hotel v. Montefiore
Dickenson v. Dodds
Routledge v. Grant
Powell v. Lee
Adams v. Lindsell
Byrne v, Van Tienhoven
Household Fire Insurance Co. v. Grant
Holwell Securities v. Hughes

Example-
Prinicple-An offer must not be vague. The terms must be clearly stated to be valid.

Case- Gunthing v. Lynn

The Defendant informed the Claimant that he would pay him a further 5 pounds if the
horse were lucky.
The Court held that this was not a valid offer as the term “lucky” was too vague