Certainty & Consideration Flashcards
Name a case which went into conflict
Loftus v Roberts (1902)- Robert engaged an actress to appear in a play at ‘West End salary to be mutually arranged between us’ – no binding contract
Name a case ?
Scammell v Ouston - ouston agreed to part exchange of old lorry and paying the difference ‘on hire purchase
what is an offer
An offer is a proposal made by one party to another, and when such an offer is accepted it is considered as a contract. An offer shall cease to exist when a counter-offer is made or if the said offer is not accepted within a particular time period. Under English Law, the person proposing the contract is called the offeror and the person accepting such a proposal is called an offeree.
what is Acceptance
The offer made must be communicated with clarity regarding its terms and such terms must be certain.
The offer must not be subjected to any changes or conditions. In case any changes or conditions are introduced then the contract will cease to exist.
There must exist consensus ad idem i.e. meeting of minds between both the parties regarding the terms of the contract.
what is consideration
In every contract, there must be an exchange of value, it can be done through monetary terms or as specified by the party to the contract.
what is valuable consideration ?
May consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other
What is a Executed Contract consideration /
A promise that was made at the same time as the counter-promise which it supports and after a time will be performed.
Eg. You come into my shop to buy a table. You pay me the price for the table -£250 - and I promise to deliver it next Thursday.
is past consideration allowed ?
no
Is not valuable consideration
Roscorla v Thomas [1842]
R purchased T’s horse. Later T gave R a written warranty that horse was ‘sound and free from vice.’
