an agreement, supported by consideration from both parties, and made with the intention to be legally binding, by parties who have the legal capacity to make such an agreement.
1 of 31
Void contract
no contract exists
2 of 31
Voidable
e.g. contracts with minors (under 18) for the supply of non-necessaries
3 of 31
Uneforceable
valid contact but one party can't force the other to complete the agreement e.g. lack of written evidence
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Gratuitous promises - gift
enforceable if they are executed via deed. otherwise only enforceable if supported by consideration from both parties.
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Agreement =
Offer + Acceptance
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Offer
expression of willingness to be bound on certain terms
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Offer made to
one person, group of people or world at large
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Offer must be
certain
9 of 31
Offer can't be
too vague
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Offer can be
Conditional, even if they are difficult to achieve or unreasonable
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Offer can include
Time limit for acceptance, even a short period
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How offers are terminated
Rejection, Conditional acceptance, lapse of time, death or offeror or offeree, offeree failing to comply with all terms, counter offer
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Hyde V Wrench
June 6 W offers propety to H for £1K, June 7 offered W £950. June 27 W rejected £950. June 29 H accepted £1K. Held: no contract. Counter offer of £950 made it invalid.
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Contrast a counter offer with a request for further information
Does not invalidate the offer
15 of 31
Steveson V Mclean
M offered to sell goods to S for 40s. S asked 'accept 40s for delivery over two months' Held: request for information, not counter offer.
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Revocation
Withdrawal of offer
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When is revocation effective
If communicated by offeror or a reliable 3rd party before acceptance.
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Invitation to treat
Inviting another to make an offer.
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Acceptance
Unconditional assent to all the terms of the offere
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Rules can be made by
Authorised person only
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When can this be applied
When offer is still open, therefore before revocation, before expiry of a specified or reasonable time and before death
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Must be communicated by
Positive words or actions
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Cant be imposed by
Silence
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Felthouse V Bindley
F 'If i hear nothing further, i will assume the horse is mine' Held: Such statement can't bind B in contract
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If method of communication is mandatory
no method will suffice, but the offer would have to be very precisely worded for the offeror to reject a contract on these grounds.
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Where contract is formed by faxing letters of offer and acceptance
contract is formed when and where the fax of acceptance is received
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Postal rule
Unless otherwise specified by offeror, contracts can be deemed accepted from moment of posting by the offeree.
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Where postal rule doesn't apply
Revocation, must be actually communicated to offeree.
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Unilateral or 'reward type' contracts
where the need for communication is expressly or impliedly waived, e.g. where action constitutes acceptance
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Carlill V carbolic smoke ball company
CSC placed adverisement, offering £100 reward to anyone buying and using smoke ball who subsequently caught flu. Mrs C claimed £100. Held: no need to communicate acceptance in unilateral contracts, action constitutes acceptance.
31 of 31
Other cards in this set
Card 2
Front
no contract exists
Back
Void contract
Card 3
Front
e.g. contracts with minors (under 18) for the supply of non-necessaries
Back
Card 4
Front
valid contact but one party can't force the other to complete the agreement e.g. lack of written evidence
Back
Card 5
Front
enforceable if they are executed via deed. otherwise only enforceable if supported by consideration from both parties.
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