Agreement To Contract

Question 1

Treitel’s ‘the Law of Contract’

Answer 1

Contract is generally defined as a legally binding agreement.

For a contract to exist there must be agreement (offer and acceptance), consideration, intention to create legal relations and capacity to enter into a legally binding agreement.

Question 2

New Zealand Shipping Co Ltd v A.M Satterthwaite & Co Ltd 1975 - lord wilberforce

Answer 2

English law takes practical approach often at the cost of forcing facts to fit into slots of offer, consideration and acceptance.

Question 3

Carlill v carbolic smoke ball co 1893

Answer 3

An offer may be made to one person, a group of people or the world at large.

Advert was an offer as it was a unilateral contract

An offeror may waiver the right of communication of acceptance

Question 4

Fisher v bell 1961

Answer 4

Flick knife on display - goods on display for sale - is an invitation to treat

Question 5

Partridge v Crittenden 1968

Answer 5

Advertisements are generally an invitation to treat because some sales require negotiation of details, seller may wish to reserve the right of service, limitation of stock, and sales hype.

Question 6

Harvey v Facey 1893

Answer 6

Supply of information is invitation to treat

Question 7

Payne v cave 1789

Answer 7

Auctions are invitation to treat

Question 8

Tinn v Hoffman 1873

Answer 8

Identical cross offers cannot amount to agreement stated by Blackburn j

Question 9

Hyde v Wrench 1840

Answer 9

A counter offer varying terms of original offer ends original offer.

Question 10

Felthouse v Brindley 1862

Answer 10

Silence cannot amount to acceptance of an offer

Question 11

Adams v Lindsell 1818

Answer 11

Postal rule - acceptance is valid as soon as the letter is posted

Question 12

Holwell Securities Ltd v Hughes 1974

Answer 12

Postal rule does not apply if offeror excludes post as means of acceptance

Question 13

Entores v Miles Far East Corporation 1955

Answer 13

General rule will normally apply to telex acceptance.

Question 14

Reg 11 Electric Commerce (EC Directive) regulations 2002

Answer 14

Internet acceptance is dealt with under this using the receipt rule.

Question 15

Gibson v Manchester City Council 1979 (HL) per lord Diplock

Answer 15

Offer and acceptance impotent judicial tools for identifying agreement. Should first be used to identify agreement and only if they fail should other means be used.