Agreement & Intention

Question 1

3 Elements of a Contract

Answer 1

i. Agreement (Offer & Acceptance)
ii. Contractual Intention
iii. Consideration (show that this has been satisfied)

Question 2

ITCLR - Assessment of parties’ intention in making an offer is objective (reasonable person)

Answer 2

SMITH v HUGHES

Question 3

ITCLR - Offeree must believe that the Offeror actually intended to make an offer

Answer 3

ALLIED MARINE TRANSPORT

Question 4

ITCLR - Commercial Agreements - Presumption that there was an intention to create legal relations

Answer 4

EDWARDS v SKYWAYS

Question 5

ITCLR - Commercial Agreements - Specific wording may, however, provide evidence for rebuttal

Answer 5

ROSE & FRANK v COMPTON

Question 6

ITCLR - Non-Commercial / Family Agreements - Presumption that there was no intention to create legal relations

Answer 6

BALFOUR v BALFOUR

- This is rebuttable - MERRITT v MERRITT

Question 7

Agreements - There must be certainty in offer and acceptance

Answer 7

SCAMMELL v OUSTEN

- ‘Fair Specification’ = Too Vague - HILLAS V ARCAS

Question 8

Define Offer

Answer 8

Prof Treifel: ‘an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it was addressed’ - Confirmed in LEONIDAS

Question 9

Goods on Display - Supermarkets and self-service shops = Invitation to Treat

Answer 9

Pharmaceutical Soc of GB v Boots Cash Chemist

Question 10

Goods on Display - Flick-Knife for sale = Invitation to Treat

Answer 10

Fisher v Bell

Question 11

Adevertisments - Local newspaper / periodical

Answer 11

PARTRIDGE v CRITTENDEN

Unless; Advertisement for a Reward – An Offer – Intention to be bound as soon as information is provided

Question 12

Adevertisments -  Unilateral Contract (i.e.: an offer) – An advert can constitute an offer to the world – Waive any need for communication of acceptance prior to the claim under it

Answer 12

Carlill v Carbolic Smoke Ball Ltd

Question 13

tTenders - When businesses decide to outsource a function, they will invite contractors to submit written tenders for the job – Sent tenders = Offers

Answer 13

Blackpool & Fyde Aero Club v Blackpool Borough Council

Unless; An invitation for tenders may give rise to a ‘unilateral contract’ - Harvela Investments

Question 14

Auctions - With Reserve

Answer 14

• An auctioneer’s request for bids is an Invitation to Treat
• The bid is an Offer which the auctioneer may accept or reject by fall of the hammer - S.57(2) SGA 1979
• Bilateral contract formed between the bidder and the owner of the good – Auctioneer acts as the owner’s agent

Question 15

Auctions - Without Reserve

Answer 15

• Offer of ‘unilateral contract’ by the auctioneer
• Promise to accept the highest bid
• Refusal of auctioneer to accept the highest bid – Bidder can claim damages against the auctioneer, not the owner - Barry v Davis

Question 16

Unilateral Offer

Answer 16

Promise in return for an act – Promisor bound to perform if the Promisee performs the specified act – Similar to Williams v Carwardine

Question 17

Bilateral Offer

Answer 17

One person makes a promise in response to another party

Question 18

Define Acceptance

Answer 18

An unconditional expression of assent to the terms of an offer

Question 19

Acceptance - Must be communicated

Answer 19

By Offeree - Entores v Miles Far East

By an Authorised Agent - Powell v Lee

Question 20

Acceptance - Silence

Answer 20

Will not constitute acceptance (protects an unwilling Offeree)
Unless; There is no reason for Offeree not to bind themselves - Re Selectmove

Unless there is a Unilateral Contract
Offeror will be deemed to have waived his right to have acceptance communicated – Offeree’s conduct amounts to acceptance - Carlill v Carbolic Smoke Ball Ltd

Question 21

Acceptance or Counter-Offer - Counter Offer (new provision entered) – Implied rejection of original offer

Answer 21

Hyde v Wrench

Question 22

Acceptance or Counter-Offer - Questions about an offer are not deemed as rejecting it – May still be acceptance

Answer 22

Stephenson Jacques & Co v McLean

Question 23

Battle of the Forms - General Rule

Answer 23

‘Last shot wins’ - Brogden v Metropolitan Railway

Question 24

Battle of the Forms - Exception

Answer 24

2 Forms had different terms
Butler Machine Tool v Ex-Cell-O – Butler returned a slip of acceptance – Held; Contract on Ex-Cell-O’s terms due to this acceptance

Question 25

Postal Rule Exemption (only applies to acceptance) - A letter of acceptance will become binding when posted if…

Answer 25

a. Reasonable to use post as a method of communication
b. It was properly posted - (a+b) Adam v Lindsell
c. Offeror did not exclude the postal rule impliedly / expressly - Howell v Hughes

If all the above are satisfied, the letter need not arrive - Household Fire Insurance v Grant

Question 26

Revocation - Offer can be withdrawn anytime before acceptance – Even when it has been promised to be kept open for a certain period of time

Answer 26

Routledge v Grant

Question 27

Revocation - Offer is irrevocable if claimant has given consideration to the Offeror to leave the offer open

Answer 27

Mountford v Scott

Question 28

Revocation - Revocation must be communicated by…

Answer 28

Offeror - Byrne v Van Tienhoven

Reliable 3rd Party - Dickinson v Dodds

Question 29

Revocation - Exception to Communication - Revocation received – Not read – It would be reasonable to assume that staff would be at work

Answer 29

The Brimnes

Question 30

Revocation - Exception to Communication - Made to public at large – Revocation can be made through the same channel as the offer – Must have same prominence

Answer 30

Shuey v US

Question 31

Revocation - If it is a unilateral contract - Revocation is not possible once the act of acceptance has begun

Answer 31

Errington v Errington & Woods