Contract Quiz - Agreement

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Contract - Three central elements:
Agreement (offer and acceptance), Intention to create legal relations, Consideration – mutual exchange of promises
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Types of Contract
Bilateral and Unilateral
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Unilateral contract example?
Carlill v Carbolic Smoke Ball Co, 1983
3 of 40
Agreement - objective test for intention case?
Smith v Hughes 1871
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Trietel's offer definition elements:
Clear, Certain, intention to be legally bound
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An offer stating it “may be prepared to sell” – not sufficiently clear and certain
Gibson v Manchester City Council, 1979
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Clear and certain offer and acceptance made by signing the agreement for sale and returning it to the council
Storer v Manchester City Council, 1974
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Partridge v Crittenden 1968
General rule = adverts are invitations to treat
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General rule = price-marked goods displayed in a shop window are not an offer for sale, but an invitation to treat
Fisher v Bell
9 of 40
Pharmaceutical society of GB v Boots Cash Chemists, 1953
• Offer is made by the customer when goods presented at cash desk to buy
10 of 40
Spencer v Harding, 1870
• A request for tenders is an invitation to treat
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– Payne v Cave 1789
auctioneer’s request for bids is an invitation to treat
12 of 40
Sale of Goods Act 1979
Acceptance is indicated by the fall of the auctioneer’s hammer
13 of 40
Boulton v Jones 1857
• Where an offer is made to a particular person/group of persons, no valid acceptance can be made by a person who is not an offeree
14 of 40
Carlill v Carbolic Smoke Ball co
• Where an offer is made generally to the world at large, valid acceptance may be made by anyone with notice of the offer
15 of 40
Hyde v Wrench 1840.
• Must be unqualified and correspond exactly with the terms of the offer
16 of 40
– Manchester Diocesan Council for Education v Commercial and General Investments (1970
• Offeror can dictate the mode using clear words
17 of 40
Tinn v Hoffman 1873
• But, if other modes are not expressly excluded, then any equally advantageous mode of acceptance will suffice
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• General rule = communicated when acceptance received by offeror
Entores v Miles Far East Corporation 1955
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Felthouse v Bindley 1862
• Silence will not suffice
20 of 40
Powell v Lee 1908
• No contract will arise if communication is made by a third party without the authority of the offeree
21 of 40
• Postal rule = where post is the proper means of communication, acceptance takes effect from the moment the letter of acceptance is properly posted
Adams v Lindsell 1818
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• A letter is properly posted when put into an official letter box or into the hands of a Post Office employee who is authorised to receive letters
Re London and Northern Bank, ex p. Jones 1900.
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• Rule applies where acceptance is delayed/lost in the post
Household Fire and Carriage Accident Insurance Co. v Grant 1879
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• Rule may be displaced if the acceptance is incorrectly addressed as the offeree loses benefit of the postal rule by negligence
Getreide-Import Gesellschaft v Contimar 1953
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• Postal rule only applicable where it was reasonable in all the circumstances for the offeree to have used the post
Henthorn v Fraser 1892
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• Ousted - always open to the offeror to require actual communication so that he will only be bound if the posted acceptance reaches him, not from the moment it is properly posted
Household Fire Insurance v Grant, 1879.
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• Can be ousted by requiring communication “by notice to”
Holwell Securities v Hughes 1974
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• Instantaneous rule: general rule is that where acceptance is made by instantaneous mode of communication, e.g. email, acceptance takes place at the moment the acceptance is received
Entores v Miles Far East Corporation 1955.
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• Acceptance by email is not effective when sent, only when received.
Chwee Kin Keong v Digilandmaill.com Pte Ltd 2004
30 of 40
an email sent at 18:00 ruled to be within office hours given the specific circumstances and the content of the parties negotiations.
• Thomas v BPE Solicitors 2010
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• An offer may come to an end by:
o Rejection o Lapse o Revocation.
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• General = An offeror may withdraw his offer any time before acceptance is made – Payne v Cave
Payne v Cave
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• Revocation must be received in order to be effective
Byrne v Van Tienhoven 1880
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• Where an offeree makes a counter-offer, the original offer is rejected and cannot be subsequently accepted
Hyde v Wrench, 1840
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• A request for information does not constitute a rejection and the offer remains open and capable of acceptance
Stevenson, Jacques and Co v McLean 1880
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• An offer may lapse and become incapable of acceptance by
A) Passage of time - Ramsgate Victoria Hotel Co v Montefiore, 1866
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• Revocation can be communicated by a third party, provided that they have the authority to speak for the offeror
Dickinson v Dodds
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• Unilateral offer general: Possible to revoke a unilateral offer at any time before the complete performance of the act
Great Northern Railway Company v Witham, 1873
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• Unilateral offer general - when the offeree has partly performed the obligation and is willing and able to complete the obligation
Errington v Errington and Woods, 1952
40 of 40

Other cards in this set

Card 2

Front

Types of Contract

Back

Bilateral and Unilateral

Card 3

Front

Unilateral contract example?

Back

Preview of the front of card 3

Card 4

Front

Agreement - objective test for intention case?

Back

Preview of the front of card 4

Card 5

Front

Trietel's offer definition elements:

Back

Preview of the front of card 5
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