Agreement Flashcards
1
Q
What is agreement?
A
There is no contract if parties not in agreement
Cannot be binding contract on its own - must also have consideration and intention.
2
Q
What is the development of the concept of agreement?
A
Historic approach - courts to look for ‘consensus ad idem’ which means is meeting of the minds.
This is a subjective approach and difficult to implement.
Current approach - courts now apply an objective test of agreement.
CASE: Smith v Hughes
CASE: Butler Machine Tool v Ex-Cell Corporation
Courts focus on finding an offer from one party that has been accepted by the other.
Offer + Acceptance = Agreement
3
Q
CASE: Smith v Hughes
A
Court look for factual evidence to show that the parties intended to agree, as viewed ably a reasonable person.
