cases Flashcards
Define a Contract
A contract can be oral or written. It is a legally binding agreement between the party given rise to obligations which can be recognised and enforced by law
Offerq
Storer V Manchester
Carlill V Carbollic Smokeball
Harvey V Facey
Must be certain and must include terms
What is a unilaterial contract
As seen in Carbolic Smokeball and Co, The offeree does not need to communicate accpetance as this is done by fulfilling the obligations stated in the contract. It requires the offeree to carry out and perform all of the requirments. If all the obligations have been fulfilled and satisifed the offeror cannot refuse to accept it.
Invitation to treat - advertisementsq
Pattridge V Crittenden
Invitation to treat - goods on display
Boots V Pharmacutal
Invitation to treat - machines
thorton V Shoe lane parking
Termination of an offer
Counter offer
Hyde V Wrench
Termination of an offer
Revocation
Dickinson V Dodds
Lapse of Time
Ramsgate V Motefiore
Termination of offer - can death of the offeree or offeror terminate the contract
yes
requirments for accpetance
1) Must be communicated
2) Must mirror the offer AKA mirror image rule
3) Must be certain
Case - must be communicated
Entores V Miles
Silence will not be accpetance
Felthouse V Brindley
acceptance through conduct
Butler V Machine Tool
Communicated by post
Adam V Lindsell
Must be addresed and stamp properly. Acceptance once posted even if it hasnever been recieved
what is a bilateral contract
where both parties promise to perform their obligations. each persons promise acts as consideration
The amount to an offer, what must it show?
That the parties had the intention for it to be legalling binding. It must be certain and must include terms.
what are the 4 ways a offer can be terminated?
Lapse of time
revocation
death of the offer or offeree
counter offer
what does revocation mean?
the offeror may revoke the offer any time before acceptance
What are the rules to consideration?
1) The promise must move from the promisee
2) Past consideration is not good consideration
3) it not need to be adequate but it must be sufficent
4) an exisiting public duty will not amount to sufficent consideration
5) an exisiting contarctual duty will not amount to sifficent consideration
6) Part payment of debt is not good consideration
What is consideration?
Consideration is somthing of value in the eyes of the law. It can be seen as an exchange of promise. It need not be adequate but it must be sufficent. Each party will suffer a benefit and each party will suffer a detriment. the parties will be known as the promisee and the promisor. Currie V Missa.
Which case relates to the promise must move from the promisee?
This can also been seen as an aspect of privity. As defind in Dunlop V Selfridge Or Tweedle V Atkinson
Which case relates to Past consideration is not good consideration?
Re Mcardle
which case relates to consideration does not need to be adequate?
Chappel V Nestle
Which case relates to consideration NEEDs to be sufficent
Thomas V Thomas
Which case relates to contractual duties is not good consideration
Stilk V Myrikk - present consideration can not be used a new consideration
which case relates to exisiting publi duties is not good consideration
Collin V godfrey
It can not be what the law already requires.
which case relates to part payment of febt
Pinnels case
Part payment of debt is not suficent consideration to release them from the full balance
What presumption does the law raise in social and domestic agrements?
The law raises a presumption that social and domestic relationships DO NOT intent to create legal relates
what presumption does the law raise in business agreemnts?
the law raises a presumption that business agreements DO intend to create legal relations
Which case relates to Husband and Wife, Soical and domestic agreement? Was the contract enforceable?
Balfour V Baflour
the contract was not enforceable as the parties were married and on good terms
Which case relates to Mother and Daughter, Social and domestic agreement?
Jones V Paddavatton
how can the presumption be rebutted in social an ddomestic relations?
the presumption can be rebutted provided that there is contrary to evidence.
This can be where the parties have seperated, there is a written document, or a third party to the agreemen
which case relates to Business agreements?
Edmonds V Lawson
how can the presumption be rebutted in business agreemnts?
This can be very difficult to prove however the presumption can be rebutted proving there is contrary
These can be binding in honour only clauses
These can be letter of comfort
which case relates to binding in honour clauses
Rose & Frank V Crompton
Statements made through the course of negotiation are important and need to be clearly define. What are they?
Contractual terms or representations
What factors will the courts look at if they are trying to establish if it is a term or representation
1) The Parole Evidence Rule
2) Expertise of the parties
3) Importance of the statement
4) timing of the statement
What does parole evidence mean?
where the parties have agreed in writing.
what does expertise of the parties means? which case supports this?
if the represntor has greater knowledge for example a car specialist selling a car, the discussons will most likely be treated as a term.
OSCAR CHESS V Williams
what does importance of the statement mean? WHAT CASE
Does the representee rely on the statement and does it induce the party to enter the contract. It will be based on if this is the reason why the contract has been formed.
BANNERMAN V WHITE
what does timing of the statement mean? what case?
If there is a longer period between the statement and the contract it is unlikely to be viewed as a term. However, for example, enquires made through the course of a sale or purchase of a house, these will not be classed as representations.
ROUTLEDGE V MCKAY
what is a conditon of a contract?
It is the most important term of the contract as it goes to the very root. Esentially, it is the main purpose of why and how the contract will be performed. It is classed as MAJOR Term.
what case relates to coniditon of a contract?
Poussard V Spiers
What remedy is available if the condition is breached?
Repudiate the contract (Rescind) and Damages
What is a warranty?
A Warranty is classed a minor term of the contract.
What case relates to warranty>
Bettini V Gye
What remedy is available for breach of warranty?
Damages
What is an innominate term?
The term is neither a warranty or a condition. The courts will look to see if the breach goes to the root of the contract. The term cannot be classified.
what remedy is available to innominate terms
It depends if the breach has resulted in one party being deprived of a benefit. this is within the courts descretion
which case relatees to immoniate terms?
Hong Hong Fir Shipping V Kawasksi
What is an expressed term?
an expressed term has been clearly and distinctivly been discucsed by the parties. The parties must have been notified of the term. An example can be seen in emplyment contracts where Salary as been noted or working hours have been noted.
What is an implied term?
a term can be implied through custom, courts or by statue. it has not been openly discussed by is read into the contract by the courts.
what are the test for terms implied by fact
Business efficeny test or officious bystander test
name two statue by implied terms
Sale of Goods act 1979 - where goods are exhcnage for payment. They must be fit for purpose, satisfactory quality, as described.
Consumer Rights act 2015 - protects consumer and business deals.
what case relates to business effeiceny test
The Moorcock
Case relates to terms implied by law
Liverpool City Council V Irwin
What is misrepsenttion?
A misrepresentation is a false statement of fact or law which induces the other party to enter into the contract. Misrepresentaion can attract legal remedies.
what are the types of misrepsentation
Innocent
Fraudulent
Negligent
What statue supports misrepresentation
misrepresentation act 1967
which case relates to fraudulent misrep?
Derry V Peek
what is fraudulent misrep?
a false statement made knowingly it is not true.
This is carless and reckless.
What remedy is availble for fraudulent misrep?
entitled to rescind the contract claim damages.
Section 1 Misrepresentation Acct 1967
what remedy is availble for innocent misrep?
entitled to rescind OR contract claim damages. Cannot claim both
Section 2 Misrepresentation Acct 1967
what remedy is available for negligent misrep?
entitled to rescind the contract claim damages.
Section 1 Misrepresentation Acct 1967
when might the partie lose their right to rescind the contract or claim damages>
when the party is aware of the misrep but they continue with the contract. they cannot at a later date claim damages.
when does the burden of proof reverse in misrep?
Negligence.
The defendant must prove that they had no reason to beileve that they were negligent
What is an frsurated contract
A frustrated contarct is where there has been a change in cirucmstance which was unforseeable and neither of the parties fault. It means the contarct can no longer proceed and each other the parties then become released of their obligations.
how may a contract become frustrated?
1) Destruction of subject matter
2) Personal incapacity
3) Illness
4) becomes illegal to perform
5) Goverment interfearence
Which case relates to frsurated contract becoming illegal to perfrom?
Fibrosa V Fairbairn
What statue deals with allocation of loss with frustated contarcts
Law Reform (frusrated contract) 1943
what is discharge by peformance?
where both parties have fulfilled and carreid out their obligations
what is discharge by agreement?
This is also known as accord and satisfaction. The parties have agreed to terimate the contarct. Essentially this creats a new agreement which will be done by Deed of Release.
what is discharge by breach?
where a warranty, term or condition has been breached. Depending on the term, the contract will be repudiated or the innocent party can claim for damages
What remedies are available?
Damages
Repudiation (rescind contract)
Equitable remedies such as injunction and specific performance
what is the aim of damages?
to put the innocent party back to their original position before the breach happened
Damages are subject to what 3 following requirments
The person mitigated thier loss
causation has been established
was the damage to remote?
What does mitigate loss mean?
The person at loss must not worsen their situation or allow thier loss to mount up
what is specific performance?
it is an equitable remedy at the judges descetion. it is an court order requiring one party to perform their obligation
what are the two types on injunctions?
Prohibtory - they must NOT do somthing
Mandatory - they must DO somthing
