4: Law of contract

Question 1

Clyde Cycle Co. v. Hargreaves (1898)

Contractual capacity for minors (what is a necessary)

Answer 1

A racing bicycle was held to be a necessary for a young apprentice.

Question 2

Chapple v. Cooper (1844)

Contractual capacity for minors (what is a necessary)

Answer 2

A decent funeral service for her husband was held to be a necessary for a young widow.

Question 3

Minors are bound by contracts for ‘necessaries’. How are necessaries defined in Peters v. Fleming (1840)?

Answer 3

Goods or services which are ‘fit to maintain the particular person in the state station and degree… in which he is’.

Question 4

Robert v. Gray (1913)

Contractual capacity for minors (a necessary as a service)

Answer 4

It was held that instruction in the art of billiards came under the category of the provision of education.

Question 5

Doyle v. White City Stadium (1935)

Contractual capacity for minors (employment and similar contracts)

Answer 5

• Under-age heavyweight boxer held to be bound by a clause in his contract…

… which stated that he would lose his prize money if he was disqualified (which happened)

• contract similar to apprenticeship. Clause beneficial as it encouraged clean fighting.

Question 6

Pharmaceutical Society of Great v. Boots Cash Chemists (1953)

(The Offer, Agreement, Formation of a Contract)

Answer 6

• a customer did not accept an offer when he took items from the shelves of a self-service store.
• taking the goods to the cashier was the offer to buy, which the cashier accepted when money was taken in payment.

Question 7

Carlill v. Carbolic Smoke Ball Co. (1893)

Offer by advertisement, Agreement, Formation of a Contract

Answer 7

• manufacturers of carbolic smoke balls, were held to have made an offer (to the public as a whole)…

…when they promised in an advertisement to pay £100 to any person who caught influenza after having used one of their smoke balls as instructed.

Question 8

Routledge v. Grant (1828)

Revocation, Duration of the Offer, The Offer, Agreement, Formation of a Contract

Answer 8

• Grant offered to buy Routledge’s house, giving him six weeks to decide whether to accept.
• When Grant withdrew his offer before the six week period, the court held that Grant was entitled to revoke at any time before acceptance.

Question 9

Hyde v. Wrench (1840)

Rejection, counter offer, The Offer, Agreement, Formation of a Contract

Answer 9

• the defendant offered to sell his farm to the claimant for £1,000.
• the claimant replied with an offer of £950 (this being the counter offer), which the defendant refused.
• the claimant tried to accept the original offer. It was held that the defendant could refuse this also since his original offer had been rejected.

Question 10

Neale v. Merrett (1930)

ineffective acceptance, Acceptance, Formation of a Contract

Answer 10

• the defendant offered to sell land to the claimant for £280.
• the claimant accepted the offer and enclosed a cheque for £80, promising to pay the rest by monthly instalments.
• it was held that there was no contract since the ‘acceptance’ was not an unqualified one: the buyer was attempting to introduce credit terms which the seller did not want.

Question 11

What is an unqualified acceptance?

Answer 11

An acceptance where the terms exactly match the offer.