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Agreement Flashcards

1
Q

Test for intention is objective

A

Smith v Hughes

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2
Q

Subjective intention will only be considered where the offeror has made a mistake and the offeree ought to know/knew about it.

A

Hartog v Colin & Shields

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3
Q

Definition of a contract

A

An agreement giving rise to obligations which are enforced or recognised by law (Treitel)

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4
Q

Definition of an offer

A

An expression of willingness to contract on specified terms made with the understanding that it is to become legally binding as soon as it is accepted by the person to whom it is addressed (Treitel)

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5
Q

Definition of a unilateral offer

A

An offer under which only the offeror assumes an obligation and which demonstrates intention to be bound and is only accepted by actual performance of the required act. Promising to act is insufficient. (Carlill v Carbolic Smoke Ball)

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6
Q

An offer must be clear and certain

A

Gibson v Manchester City Council (may - insufficient);

Storer v MCC (will - clear and certain)

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7
Q

Definition of an invitation to treat

A

the first step in negotiations which may of may not lead to a firm offer and is not binding.

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8
Q

Display of goods for sale is an invitation to treat, not an offer

A

Fisher v Bell (flick knife)

Pharmaceutical Society of GB v Boots

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9
Q

Generally, adverts are an invitation to treat

A

Partridge v Crittenden

Harris v Nickerson (auction)

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10
Q

Exception to the advertisement rule: where the supplier is also the manufacturer

A

Grainger v Gough

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11
Q

Exception to the advertisement rule: where the advert amounts to a unilateral offer

A

Carlill v Carbolic Smoke Ball - clear prescribed act, performance of which constitutes acceptance, intention to be bound.
No requirement for those accepting to communicate acceptance

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12
Q

Unilateral offer “first come first served”

A

Lefkowitz v Great Minneapolis Surplus Store

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13
Q

Invitation to tender is an invitation to treat. Requestor is not bound to accept the most competitive offer

A

Spencer v Harding

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14
Q

Where the invitation to tender expressly contains a promise to accept the highest/lowest bid, this is binding

A

Harvela Investments v Royal Trust of Canada

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15
Q

Invitation to tender may be construed as an offer with different term e.g. an offer to consider bids (not accept)

A

Blackpool & Fyde Aero Club

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16
Q

Auctions: auctioneer’s request for bids is an ITT; bidder makes offer, which auctioneer accepts with the fall of the hammer. Bidder can revoke any time before the hammer falls

A

Payne v Cave

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17
Q

In auctions without reserve, the auctioneer may be sued for breach of contract if he refuses to sell to the highest bidder

A

Warlow v Harrison, confirmed in Barry v Davis

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18
Q

Offer must be communicated

A

Taylor v Laird

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19
Q

Offer may be communicated to the whole world

A

Unilateral offer - Carlill

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20
Q

Counter-offer is a rejection of the original offer which cannot be later accepted

A

Hyde v Wrench

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21
Q

Request for information - ancillary matter, interrogatory language

A

Stevenson, Jacques & Co v McLean

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22
Q

Rejection does not take effect until communicated to offeror

A

Postal rule does not apply

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23
Q

Offeror may revoke any time before acceptance.

A

Payne v Cave

Routledge v Grant

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24
Q

An option contract will be invalid for want of consideration

A

Routledge v Grant

contract Dickinson v Dodds - valid

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25
Q

Revocation with a valid option contract will be a breach

A

Dickinson v Dodds

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26
Q

Communication of revocation is essential, it is only effective upon actual notice reaching the offeror

A

Byrne v Van Tienhoven

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27
Q

Revocation can be communicated by a third party (without authorisation) provided the offeror has shown, by words or conduct, clear intention to revoke his offer

A

Dickinson v Dodds

BUT Treitel criticism - uncertainty
CA decision so will be followed, but may be overruled if it reaches Supreme Court - look at both outcomes

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28
Q

It is possible to revoke a unilateral offer any time before completion of the required act

A

Great Northern Railway v Witham

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29
Q

Where offeree has partly performed obligation and is willing and able to complete the specified act required for acceptance of the unilateral offer, the offer may not be revoked

A

Errington v Errington & Woods

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30
Q

Offeror of a unilateral offer must no prevent condition becoming satisfied

A

Daulia v Four Mill

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31
Q

Offeror of a unilateral offer must take reasonable steps to bring revocation to the attention to all who may have read the offer - same notoriety must be given

A

Shuey v US

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32
Q

Lapse of offer by time

A

Ramsgate Victoria Hotel v Montefiore

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33
Q

If offeree aware the offeror has died, offer lapses. If unaware, it may remain open

A

Bradbury v Morgan

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34
Q

If offeree dies, the offer lapses and cannot be accepted by executors

A

Re Duff’s Executors’ Case

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35
Q

Lapse by non-fulfillment of a condition

A

Financings Ltd v Stimson

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36
Q

Acceptance must be unqualified - mirror image

A

Hyde v Wrench

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37
Q

Acceptance must be made in response to the offer - only the offeree can accept

A

Boulton v Jones

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38
Q

An offer is not accepted by doing the required act in ignorance of the offer

A

R v Clarke

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39
Q

If the offeree has requisite knowledge of the offer, it is irrelevant if they perform the specified act for other motives

A

Williams v Cawardine

40
Q

Colleagues were deemed to be his agents so that he had requisite knowledge when information was given to the superintendent

A

Gibbons v Procter

41
Q

Where the award is for information, only the first person to provide information is entitled to the award

A

Lancaster v Walsh

42
Q

Acceptance must be communicated to the offeror. Silence is not sufficient.

A

Felthouse v Bindley

43
Q

Offeror cannot state that he will be bound by silence

A

Felthouse v Bindley

44
Q

Acceptance may be inferred by conduct

A

Taylor v Allen, applied in Intense Investments v Development Ventures

45
Q

3rd party communication of acceptance is sufficient, provided communication is made with the authority of the offeree

A

Powell v Lee

46
Q

Where communication is not received due to offeror’s fault (e.g. no ink in fax machine), he will be estopped from saying that he did not receive acceptance

A

Entores v Miles Far East Corporation

47
Q

Postal rule: where post is the proper mode of communication, acceptance takes effect when the letter is properly posted

A

Adams v Lindsell

48
Q

Properly posted = put in hands of PO employee authorised to receive post or in post box

A

Re London and Northern Bank ex p Jones

49
Q

Postal rule does not apply to revocations

A

Byrne v Van Tienhoven

50
Q

Postal rule applies even where letter is lost of destroyed

A

Household Fire and Carriage Insurance v Grant

51
Q

It must be reasonable for post to have been used for postal rule to apply

A

Henthorn v Fraser

Quenerduaine v Cole

52
Q

Postal rule will not apply if the offeree misaddresses the letter due to lack of care

A

Getreide Import v Contimar

53
Q

The offeror can oust the postal rule by explicitly stating that he will only be bound when acceptance reaches him

A

Household Fire and Carriage Insurance v Grant

Holwell Securities v Hughes “by notice to me”

54
Q

Scottish authority saying the posted acceptance can be revoked

A

Dunmore v Alexander

55
Q

Scottish authority overruling Dunmore v Alexander - revocation of posted acceptance not possible

A

Thompson v James

56
Q

Where communication is made by instantaneous communication, actual communication is required. Postal rule does not apply.

A

Entores v Miles Far East - confirmed in Brinkibon v Stahag Stahl

Onus is on offeree to re-establish connection if he should realise that acceptance was not made.

If acceptor reasonably believes his acceptance has been communicated, but this is not so because of the fault of the offeror, the offeror will be estopped from saying that he did not receive the acceptance

57
Q

Telex sent during ordinary office hours but not seen until the next week was effective when receive as acceptor could reasonably assume communication

A

The Brimnes

58
Q

Telex sent out of office hours will be deemed received at the start of the business of the next working day

A

Mondial Shipping v Astarte

59
Q

Email sent at 6pm deemed in office hours as previous correspondence showed that the transaction could’ve been completed that evening

A

Thomas v BPE Solicitors

60
Q

Offeror may insist that he will only be bound if acceptance is communicated in a specific way. Offeror can waive this if communication is made in another way

A

Manchester Diocesan Council for Education v Commercial and General Investments.

Onus is on offeror to make it clear if he only intends to be bound by one method

61
Q

Where offeror prescribes a mode but does not insist that only that mode will be binding, any equally advantageous modes will be binding

A

Tinn v Hoffmann

62
Q

If mode is prescribed for the benefit of the offeree, the offeree can waive the stipulation and use an alternative mode, provided it does not disadvantage the offeror

A

Yates Building v Pulleyn

63
Q

Commercial agreements - presumption that it is intended to be binding

A

Well Barn Farming Ltd v Backhouse

64
Q

Burden of rebutting commercial presumption falls on party claiming no intention and it is a heavy burden to discharge

A

Bunn and Bunn v Rees and Parker

Did not matter that some of the finer details were yet to be worked out; terms were typical of commercial agreement and they were experienced businessmen

65
Q

Parties can rebut the commercial presumption by stating that the term is “binding in honour only” / “not legal or subject to legal jurisdiction”

A

Rose & Frank v Crompton Bros

66
Q

Language used to denote lack of intention must be clear

A

Edwards v Skyways

67
Q

Objective assessment of evidence may be enough to rebut commercial presumption - parties wanted flexible relationship

A

Baird Textiles v M&S

68
Q

Contractual intention may be negatived if statement made in anger or jest

A

Licences Insurance v Lawson

69
Q

Offer of free coin had intention due to business context and commercial advantage of attracting extra customers

A

Esso v Customs & Excise

70
Q

“subject to contract” creates strong inference that parties do not intend to be bound

A

Eccles v Bryant & Pollock

71
Q

Presumption that family arrangements are not intended to be binding

A

Balfour v Balfour

72
Q

Family presumption rebutted as marriage had ended

A

Merritt v Merritt

73
Q

Defendant, granddaughter and lodger regularly entered competitions together under one name - sufficient mutuality to show intention

A

Simpkin v Pays

74
Q

Bingo winners promised to share winnings - had also complied. Previous conduct showed intention

A

Peck v Lateau

75
Q

Minors are not bound by contracts unless for necessaries, made for their benefit, for which they must pay a reasonable price for.

A

Nash v Inman

76
Q

A minor is only bound by a contract of employment if for their benefit

A

Aylesbury FC v Watford FC

Proform Sports Management

77
Q

If Mental Capacity Act doesn’t cover incapacity, the contract is binding unless the person claiming incapacity can establish that he did not understand what he was doing, and the other party knew this to be the case

A

Imperial Loan v Stone

78
Q

If a person is so drunk he doesn’t understand what he is doing, he will have to pay a reasonable price for necessaries but not bound by any other contract

A

Gore v Gibson

79
Q

Definition of consideration

A

Pollock, adopted in Dunlop v Selfridge
“an act or forebearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.”

80
Q

Executory consideration

A

promise to perform something

81
Q

Executed consideration

A

at the time of the formation of the contract, the consideration has already been performed - unilateral contracts - required act = acceptance and consideration

82
Q

Consideration must not be past

A

Eastwood v Kenyon

83
Q

Where past consideration was provided at promisor’s request and it was understood that payment would be made

A

Lampleigh v Braitwait

84
Q

Understanding that payment will be made can be implied

A

Re Casey’s Patents

85
Q

Requirements for past consideration exception:

A

Pao On v Lau Yiu Long

  • done at promisor’s request
  • understanding that payment would be made
  • payment would be legally enforceable if promised in advance
86
Q

Consideration must move from the promisee

A

Tweddle v Atkinson

87
Q

Consideration need not be adequate

A

Chappell v Nestle

88
Q

Consideration must be sufficient

A

White v Bluett

89
Q

Existing obligations under a contract - promise to do more unenforceable if no new consideration (e.g. extra work)

A

Stilk v Myrick

90
Q

Existing obligations under a contract - promise to do more enforceable if contractual duty is exceeded

A

Hartley v Ponsonby

91
Q

Promise to pay more may be enforceable even where contractual obligations are not exceeded under certain conditions

A

William v Roffey Bros:

  • existing contract
  • promise to pay more
  • reason to doubt performing party is willing or able to perform
  • paying party receives extra benefit/obviation of disbenefit
  • extra benefit is capable of being consideration
92
Q

Willam v Roffey Bros does not apply to promises to accept less than is owed

A

Re Selectmove

93
Q

Merely carrying out a public duty will not amount to sufficient consideration

A

Collins v Godfrey

94
Q

Policeman went beyond public duty by providing information to private individual = consideration

A

England v Davidson

95
Q

Performance of a pre-existing obligation to a 3rd party will amount to sufficient consideration for a promise given by the promisor

A

Scotson v Pegg, applied by The Eurymedon

Contract (6 decks)

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