Contract

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Invitation to treat
Indication of willingness to negotiate
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Fisher v Bell
Knife in shop window not an actual offer, just encouraging customers to come into the shop to make offers
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Offer
Statement of terms upon which the person making the offer is willing to enter a contract, it can be verbal or written
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Biggs v Boyd
For a quick sale I will accept $26,000
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Communication of offers
Must be communicated to the offeree (Taylor), offeree must know the offer (Fry)
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Acceptance
Offeree accepts the offer and contract commences
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Rejection
Once an offer is rejected, it cannot then be accepted
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Withdrawal
Withdrawal of an offer can occur any time before acceptance (Routledge)
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Counter offer
Rejects original offer and then opens a new offer (Hyde v Wrench)
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Lapse of time
Offer ends when a fixed time expires (Ramsgate)
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Death
If the offeree dies the offer ends
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Acceptance
Can occur by conduct, by words or writing, or by post
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The postal rule
Acceptance occurs when the letter is posted, not recieved
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Electronic communication
Postal rule does not apply, acceptance takes place when the email arrives (Entores)
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Felthouse v Bindley
Acceptance by conduct, acceptance still requires positive conduct not silence
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Consideration
Each party gives something of value to one another
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Executed consideration
When promises have been carried out
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Executory consideration
where the promises have yet to be fulfilled
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Consideration need not be equal
Chappell v Nestle, free records in exchange for sweet wrappers
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Must not be past
McArdle, Woman paid for the improvements to a house, and others promised to pay, but they didn't. Consideration was past as the work had been done, there was no contract
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Must move from the promisee
Tweddle, Fathers died before they could give a couple money, and a claim was made to his fathers estate. The claim failed because junior had offered no consideration
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Performing an existing duty is not good consideration
Stilk, Captain promised to pay crew extra to sail back with the ship, however performing an existing duty is not consideration for extra money
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Intention to create legal relations
Each party must intend for the agreement to be legally binding, social and domestic agreements are not usually legally binding
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Social agreements
Simpkin v Pays, no longer domestic because there was a lodger involved, Jones v Paddavatton binding because it was domestic
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Business agreements
Intended to be legally binding, McGowan v Radio Buxton - the prize was not a real car however there was an expectation that it would be, therefore there was ITCLR
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Actual breach
Non-performance of contract, or not to the expected standard
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Anticipatory breach
When one party states or shows by conduct that they will not be able to complete the contract, can sue for damages immediately or wait until after the fixed time and sue for actual breach
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Breach of warranty
Breach of minor term, Bettini didnt show up for rehearsals twice, caused inconvenience so damages could be claimed but not end the contract
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Breach of condition
Breach of important term, Poussard v Speirs - didn't show up to performances so employers could end the contract and not pay
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Hochster v De La Tour
Guide was told his services would not be needed, he could claim damages immediately or wait and see if they changed their mind at the date
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Remedy - repudiation
When there has been a breach of condition, goods must be returned and innocent party can claim damages
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Damages
Available for all kinds of breach of contract, monetary compensation must be paid to innocent. Liquidated damages have already been decided
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Causation
Breach must be the main cause of loss, may not be a direct result of D but they still may be liable for it (Stansbie)
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Remoteness of damage
Where courts decide whether losses resulting from breach are recoverable
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Normal loss
Usual result of a breach of contract (Heron)
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Abnormal loss
Loss that is still within the parties contemplation when the contract is made
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Mitigating loss
The claimant must do their best to keep loss minimal (Wiseman). Claimant cannot recover losses that could have been avoided
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Small claims track
County court, under $10,000, simple cases
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Fast track
County court, $10,000-$25,000, some complexity
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Multi-track
County court or High Court, complex cases
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Starting a contract
Should first be attempted to be settled with ADR, N1 claim form is filled out by claimant who has to pay a fee depending on track, defendant receives claim form which they have 14 days to acknowledge and then another 14 to respond with a defence
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Other cards in this set

Card 2

Front

Fisher v Bell

Back

Knife in shop window not an actual offer, just encouraging customers to come into the shop to make offers

Card 3

Front

Offer

Back

Preview of the front of card 3

Card 4

Front

Biggs v Boyd

Back

Preview of the front of card 4

Card 5

Front

Communication of offers

Back

Preview of the front of card 5
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