Chapter 2- Agreement Flashcards
What is consensus Ad Idem
Meeting of the minds
Agreement definition under the court
Agreement is dealt with by an objective approach. The court decides if an agreement is valid by facts of the case
Butler Machine Tool Co c Excell O Corporation 1979
Gibson v Manchester City council 1979
Are examples of what?
Relaxed approaches of contracts. Courts look for FACTUAL INDICATORS of offers and acceptance
Gibson v Manchester City counsel said ‘may sell house’
Was RTS flexible systems ltd v Molkrnr Alois Miller GMBH valid contract?
It was not valid on state of mind but was valid in words and conduct communicated between the parties
Name 2 case examples which show no agreement found due to lack of legal intent
Maxine’s c Gross 2017
Jas Financial produce LLP v ICAP pls 2016
Blue v Ashley 2017
Wright v Rowland 2017
What’s an offeror and Offeree
Party Offering is offeror
Party receiving offer is the offeree
DEF OF OFFER-
An offer is an expression of willingness to contact on certain terms on which the offeror is prepared to be legally bound following acceptance
Nicolene Ltd v Simmonds 1953
Court of appeal ignited statement from the defendant that “usual conditions of acceptance apply”.
Court deemed there are no “usual conditionals of acceptance”
Scammer and Nephew Ltd v Ouston 1941
Court determined a van acquired for hire purchase terms was to vague. Contract was voided.
Name what occurs if minor or major sections of contract are deemed inaccurate/ uncertain/ incorrect
Minor - strike out that section of the contract to not be replied upon
Major - void entire contract
Give example of familiar terms used in case law to support an agreement
Hillas ltd v Avcos ltd 1932
Though terms of contract to sell wood were vague. Court ruled due to previous history between seller and buyer the contract was valid.
Baird Textile Holdings Ltd v Marks and Spencer’s Plc 2001
Court deemed contract to be void as it was not able to establish what was reasonable on quantity or price
Unilateral offer definitions
If contact
If you do something I promise to do something in return
REWARD POSTER
Bilateral Contract definition
Both parties have an obligation to the contract
Change in trade for money
Name 3 ways to make an offer
Orally
Writing
By conduct
Which case law supports offeree must have knowledge of the offers communicated to them?
Taylor v Laird 1856
Ship captain quit his John but continued to work on the ship. The employer was not obliged to pay him as they were aware of the possible new contract between the captain and the employer
Carill v Carbolic Smoke ball Co Ltd 1893
UNILATERAL OFFER - claimant caught influenza as pet worldwide offer from the defendant. Defendant didn’t pay the claimant reward of £100 as she caught the flu from taking the Defendant medicine
Court deemed this to be an offer to the whole world from defendant not a contract
Definition Invitation to treat
An invitation for someone to make an offer
When can an invitation to treat become an contract
When it is followed up with an offer which is accepted
Where can invitations to treat be used
Advertisements Auctions Requests for tender (money) Displayed of goods for sale Statement of the price
Partridge v Crittenden
Offer to sell a bird is seen as as invitation to treat.
Was Carill v Carbolic Smoke ball Co Ltd 1893 an invitation to treat?
No as a promise was made this was deemed as a definite offer
Give an example of seller discretion
Tesco released sale of iPad for £50
Offer was not honoured as it was a mistake and withdrawn under seller discretion
When is an auction deemed as an offer but not an invitation to treat?
When product has a reserve price
Offer to sell ‘Warlow v Harrison 1859’
Harvela investments ltd v Royal trusts co of Canada 1986
Invitation of tender was deemed an offer as advert said tender would be accepted from the highest bidder.
What case law contradicts Harvela investments ltd v Royal trusts co of Canada 1986
Spencer v Harding 1870 was deemed an invitation to treat as no offer was involved in advertisement
What is the display of goods for sale deemed as
An invitation to treat
When is an offer deemed to be ended
If it is withdrawn from offeror
Remained open for too long
Offer is accepted
Offer is given a counter offer
Payne v cave 1789 for revocation
Offer is considered revoked when is received by offeree, not ‘sent’ by offeror
Byrne v Tan Tienhoven 1880
Revocation was not received by the claimant prior to the acceptance though defendant sent the telegram prior to the acceptance
Dickinson v Dodd 1876
Third party told the claimant that the house was telling. The Defendant sold the house prior to the claimants acceptance letter. The court deemed the contract revoked due to the claimant receiving Third party information about the house sell
Errington v errington 1952
Unilateral offers cannot be revoked. Case where father promised to transfer ownership of the house once instalments were paid by the daughter. Daughter paid instalments, father tried to revoke offer. Court deemed contract terms met and therefore offer could not be revoked
Shvey v United States 1875
An offer can only be considered revoked once reasonable steps have been proven to have been taken to revoke the offer
Hyde v Wrench 1840
Example of counter offer Farm offeror £1000 Offeree countered £950 Offeror £1000 Offeree rejected Offeror said will take £950 Offeree rejected
Offeror tried to take Offeree to court for rejection. Court deemed counter offer an initial rejection of £950 therefore no valid contract
Butler v machine tool co v excell-o corporation England ltd 1979
Last party to send it’s terms “wins” as each redraft constitutes as a new offer which cancels out former offer
Pickfords v celestica 2003
Offeror makes one offer, then makes a second offer straight after which is considerably different to the first then the 1st offer is deemed revoked
Stevenson Jacques v Co McClean 1880
Query of an offer is not a counter offer
Offeree made query on offeror offer. Offeror deemed it as a counter and sold to another third party. Court deemed contract with Offeree valid as it was only a query on the offer not a counter
Ramsgate Victoria hotel v montefore 1866
Lapses offer!!!
Too much time passed between offer and acceptance
Name 3 ways to accept an offer
Verbal, written, by conduct
When an acceptance mirrors and offer what is this referred to,
Mirror image rule
Acceptance subject to contract
This allows the parties to confirm the validity of the contract prior to accepting
Felthouse v bindley 1862
Uncle tried to sue an auction house for selling a horse as he said to horse owner (his nephew) ‘if I don’t hear from you I consider my offer accepted’
Court decided it was not effective communication of acceptance
Yates building co ltd v RJ pulleyn and sons york ltd 1975
Offer acceptance can be specified in offer.
E.g “this offer can only be accepted in writing”
Which case states offer can be accepted only by a person authorised to accept it
Powell v lee 1908
Pickfords v celestica 2003
Work was carried out in line with contract. Court deemed offer accepted by conduct
3 examples by conduct
Avcadis consulting UK v AMEC BSC ltd 2016
Novus Aviation v Alubaf Arab International Bank BSC 2016
Reveille independent LLC v Anotech International UK Ltd 2016
Carill v CAMBOLIC smoke ball
Unilateral offer acceptance
Claimant performed the use of the product as suggested. Though she didn’t formally accept the offer she did perform the act the company required
What is the postal rule
If a offeror withdraws offer post acceptance by the Offeree by post but does not receive the offerees acceptance before withdrawal then the offer is still deemed accepted
Even if offer is delayed or never reached offeror. Offeree must prove acceptance prior to withdrawal of offer
Howells securities v Hughes
Hughes didn’t receive notification to buy his property from Howells security. Court deemed no valid contract as Hughes should have been notified for definite of offer to buy property
When does the postal rule not apply
When it leads to manifest inconvenience and absurdity
Byrne v Van Tienhoven and Dunmore v Alexander 1830
Offer acceptance sent by post. Then decided to withdraw offer face to face prior to acceptance letter received. court deemed this valid
Brinkbon Ltd v Stahag Stahl Und Stahlwarehandelr (Brickbon case)
Email acceptance is deemed a contract soon as it is delivered
Electronic Commerce (EC directive) regulations 2002
What is regulation 2?
The contract is formed when the customer is able to access the acknowledgement of receipt sent from the supplier or seller
