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Cases for week 2

1. Invitation to offer
Co. A issued an advertisement on the newspaper: Now our
corporation has 1 000 tons of certain type of cement. The price is
RMB 300 per ton and we will transport the goods to you. Quickly
decide and we are always ready to supply.
Question: Is the advertisement an invitation to offer?
Answer: No, it is an offer.
2. Effectiveness, withdrawal & revocation
(1) A sent a letter to buy two coffee machines from B on March 1st.
The letter arrived at the postbox of B on March 5th.
Question:
When did the offer become effective?
(2) If B was travelling outside on March 5th, and he didnt come back
till March 7th. Until then, he found the letter.
Question:
When did the offer become effective?
(3) If the market quotation suddenly changed on March 2nd. A sent
an express letter on March 3rd to withdraw the original offer and it
reached B on March 4th.
Question:
Did the letter arrived on March 5th become effective?
(4) If the market quotation suddenly changed on March 2nd. A sent
an express letter on March 3rd to revoke the original offer and it
reached B on the morning of March 8th.
Question:
Could B dispatch the acceptance on the afternoon of March 8th?
(5) If A (in the e.g. 1) sent an offer to B, asserting that:"Your
acceptance shall be made before March 8th, or it will be invalid." The
market quotation suddenly changed on March 2nd. A sent an express
letter on March 3rd to revoke the original offer and it reached B

morning of March 8th.


Question:
Could B dispatch the acceptance on the afternoon of March 8th?
3. Acceptance
(1) A sent offers to both B and C. The offer was that A needs 1000
tons of certain type of cement and the price was RMB 300 per ton.
After B received the offer, he immediately sent a message to A
accepting that he would transport the goods to A next day. While C
immediately transport 1000 ton of that type of cement to A after he
received the offer.
Question:
Was the contract concluded between A and B? A and C?
Answer:
Both contracts were executed.
(2) If: after B received the offer (in the e.g. 1), he immediately
replied that he agreed to send the goods and deliver them after
paying. A remitted the money immediately after receiving Bs
message.
Question:
Was Bs reply an offer or an acceptance?
Was the contract executed between A and B?
Answer:
The reply was an acceptance.
The contact was executed.
(3) If: after B received the offer (in the e.g. 1), he immediately
replied that he agreed to send the goods but the price shall be RMB
300.1 per ton.
Question:
Was Bs reply an new offer?
Was the contract executed if A didnt agree with the new price?
Was the contract executed if A said nothing after receiving Bs
reply?

Answer:
No. No. Yes.
4. Conditions of Formation
(1) A and B wanted to conclude a Purchase and Sale Contract. They
agreed to conclude the contract in the form of contract instrument.
Later they agreed on all clauses through telephone, including the
content that A shall deliver 10 tons of the goods first and B shall
deliver the payment of RMB 100 000 a week later.
Question:
Was the contract executed?
Answer:
No.
(2) If A delivered 9 tons of the goods later and B accepted.
Question:
Was the contract executed?
A: Yes, the contract was executed.
(3) If A delivered only 1 ton of the goods later and B accepted.
Question:
Was the contract executed?
Answer:
The contract that concluded on mutual assent hadn't been
executed. But the contract dealing with 1 ton of the goods had been
executed.
5. The place of formation
(1) A and B concluded a purchase and sale contract in written form.
They agreed on the main clauses in place C, A signed the contract in
place D. Then B signed in place E. The contract was performed in
place F.
Question:
Where was the contract concluded?
Answer:

Place E
(2) A sent an offer to B on March 3rd. B dispatched the acceptance
on March 5th and it arrived at the house of A on March 10th. They
signed the contract in form of Contract Instrument on March 15th
according to the offer.
Question:
When was the contract concluded?
Answer:
March 15th.
6. Standard Clauses:
A went to a shop and bought a bottle of water. Before drinking he
found some dirty thing in the bottle and went to the shop to return
the goods. But the shopkeeper (B) pointed at the notice on the wall
which read "The goods shall not be returned after sale" and said to
A:"This notice is a part of our contract, so you can't return the bottle
of water.
Question:
Could A return the goods?
7. Effectiveness of a contract
(1)Invalid Have not become effective
A intended to sell his house and ask B whether he would like to buy
it. B said if there would magpie staying on the roof of the house at 7
oclock next morning, he would buy it. Next day, when the time was
approaching 7 oclock, a magpie appeared above the roof and was
hovering. But when the son of A saw the magpie he threw a stone at
it and the magpie flew away. No magpie appeared after that till 7
oclock.
Question:
Was it an invalid contract?
Answer:
No, the contract had not become effective.

(2) A agree to lease his house to B and the rent is RMB 50 000 per
year. B could live in the house till he died.
Question:
What is the nature of the house leasing contract?
a. Dissolving conditions attached contract
b. Postponement conditions attached contract
c. Effectiveness time period attached contract
d. Termination time period attached contract
Answer:
d
8. Effectiveness-pending contracts
A donated his painting to ECUPL and the donate contract stipulated
that the painting can only be used as collection and exhibition and
cannot be transferred. But ECUPL donated the painting to C after
acceptation.
Question:
Was the donate contract between ECUPL and C invalid?
Answer:
No.
9. Revocable contracts
A is a stamps collector. One day he learned that B had a pile of
envelopes with a priceless stamp in them. So he said to B: Would
you like to sell those waste papers to me at 100 yuan? And they
dealt. After B went home he found the stamp was not that priceless
one but a common one. So he thought the contract was not
concluded on true intention in manifestation and wanted to revoke
the deal.
Question:
Could A ask the court to revoke the contract?
Answer:

No.
10. Void contracts
A is a state owned company and B is an individual owned company.
B signed a purchase and sale contract with A by means of fraud and
thus A lose RMB 500 000.
Question:
Is it an invalid contract as it impairs the State's interests?
Answer:
No, it is a revocable contract.