Cases for Contract Law

Question 1

Acceptance

Answer 1

Felthouse v Bindley (1862)
Paul Felthouse, had a conversation with his nephew, John Felthouse, about buying his horse

The defendant, Mr Bindley, ran the auctions and the nephew advised him not to sell the horse. However, by accident he ended up selling the horse to someone else.
The issue in this case was whether silence or a failure to reject an offer amount to acceptance

Question 2

Warranties and Conditions

Answer 2

Bettini v Gye (1876)
The issue was whether the requirement to be in London “without fail” 6 days before the start of rehearsals was a condition - Therefore Breach

Question 3

Offer

Answer 3

Carlill v Carbolic Smokeball Company (1893)

The issue was whether or not a valid offer was made to the world.

Question 4

Unconscionable Conduct

Answer 4

Commercial Bank of Australia v Amardio (1983)
The issue was whether or the Amadios were bound by the contract considering that they had little understanding of English, they did not know “there was no limit on their liability”

Question 5

Intention to Create Legal Relations

Answer 5

Simpkins v Pays (1955)
Intention to create legal relations is whether both parties had intended to create a legal binding contract or a mere social agreement. This is evident in the Simpkins v Pays case where the issue lies in whether the agreement made to split the money was an informal or legally binding agreement.

Question 6

Intention to Be Legally Binding

Answer 6

Todd v Nicol (1955)
(Move to Australia)
Whether or not the agreement for Todd to move in was legally binding - Intention to ve legally bound.

Question 7

Offer/Invitation to Treat

Answer 7

Pharmaceutical Society of the Great Britain v Boots Cash Chemists (1953)
The question was whether the contract of sale was concluded when the customer selected the product from the shelves or when the items were paid for. The court found the defendant was not in breach. The contract was completed on payment.

Question 8

Capacity

Answer 8

Matthews v. Baxter (1873)\
Baxter, while drunk, agreed at an auction to purchase a property. Once sobriety returned he decided that he wished to affirm the contract
he had a change of mind
he sought to rescind the contract, arguing that he lacked capacity