CHAP 2 CONTRACT LAW Flashcards
Form of contract
Can be in any form - simple
Maybe written, oral, from conduct of parties.
Exceptions of form of contract
BOE, Cheques, transfer of share, cotract of sale of land must be in writing
What is not an offer
An invitation to treat is not an offer
E.g an advertisement is an invitation to treat not an offer
However it would be an offer if no further negotiations were intended or expected. And advertisers made it clear that they would pay money to anyone complying with the terms of the adv.
Window display: not an offer of sale, but an invitation to treat.
Goods on shop shelves
Tender: asking parties to submit terms in which they are willing to carry out work or supply foods. It is an ITT because offeror and other party is free to acceot or reject
A mere statement of sp in response to a request for information is not an offer
Auction: adv of auction is not an offer. auctioneer asks for bids is an invitation to treat.
Cross offer: two parties makes identical
Offer to each other without knowing that the other has made an offer. No binding contract
Tender exception
If invitation contains that purchaser will require certain quantity of goods then acceptance of tender will form a contract
If purchaser only may require goods, acceptance gives rise to standing offer. In this situation, no compulsion on purchaser to take any goods.
Termination of an offer
Terminated by revocation
Rejection
Lapse
Revocation
By offeror can be made at any time before acceptance, even if the offeror has agreed to keep offer open.
Must be communicated to the offeree
Can be communicated by the offeror or reliable 3rd party
Rejection
By the offeree may he outright or by means of a counter offer
Not mere request for further details does not constitute a counter offer
Lapse
On
Death of offeror unless offeree accepts in ignorance of the death
Death of offeree
Failure of a condition. If made on condition
After a expiry of a fixed time (if any) or after reasonable time
Acceptance
Unqualified and unconditional assent to all the terms of the offer
Can oral, written or by conduct
The offeror can stipulate a particular mode of acceptance
Communication of acceptance
Not effective until it’s communicated to the offeror
In a fax, telex or telephone, message is received during normal b.hrs that is when communicated even read later
If received outside business hrs then deemed to be communicated when the business next opens
Offeror can expressly or impliedly kahe k mujhe communication ki zaroorat nh
But silence cant be acceptance
Postal rule
Acceptance is completed as soon as the letter is posted
Howver it only applies if:
Letter properly stamped, addressed and posted
Post is reasonable method of communication
Exception to postal rule
This doesnot apply if offeror clearly states that he must receive the acceptance
Consideration
Every contract must contain consideration but speciality contract do not require consideration unless the terms of the agreement require it
Types of consideration
Executory consideration (abhu nahi dena)
Given where there is an exchange of promises to do something in future
Eg goods on COD
Executed: abhi goods ke against cash diya
Shopping ki aur paise diye at a time
Adequate consideration
There is no need for each party’s consideration to be equal in value
Sufficient consideration
Must have some monetary value
Capable in law of amounting consideration
Past consideration
Is insufficient and therefore not valid
Whollu performed before the other party gives his primos
Ghar decor krdiya baad me paise diye aur kaha yeh lo
Part payment
Pinnels case state that payment of smaller sum does not discharge liability of the greater amount however some exceptions are there
