Civil Obligations Flashcards
What are the essential ingredients of a contract?
Offer
Acceptance
Consideration
Intention to create legal relations
When will an agreement not be legally enforceable?
If the agreement is for an illegal or immoral purpose
What case is linked to an offer?
Fisher v Bell[1961] 1 QB 394
Is displaying a knife in the window with a price tag, constituting an offer for sale.
Held- no, it is only an ‘offer to treat’
What does it mean by an invitation to treat?
The seller is inviting the prospective purchaser to make an offer, which the seller can choose to accept or decline.
For there to be a legal agreement , what must there be?
An offer and acceptance of that offer
Agreements do not usually have to be in writing. What are the exceptions to this?
Contracts for sale of land
Selling and buying a car must be in writing due to transfer of registration documents
Does there need to spoken words for an offer to be accepted
No, but the conduct must signify acceptance. Such as counting out the agreed sum of money, or got in a bus and asked to be taken to a destination and given the fare- are all legally enforceable.
What is the case relating to acceptance?
Felthouse v Bindley (1862) 11 CBNS 869
Uncle was going to purchase nephews horse. Uncle wrote to nephew. ‘If I hear no more about him, I consider the horse mine. Nephew did not reply. He sold some horses at auction but auctioneer sold said horse. Uncle sued auctioneer in tort of conversion. The court held that the horse did not belong to him and could not claim under tort of conversion.
What is the tort of conversion?
Involves wrongly assuming rights over another’s property.
Case
Felthouse v Bindley 1862
Auctioneer horse
What is consideration?
There is a reciprocal arrangement. Each is giving something
Gratuitous promises are not enforceable
What is sufficient consideration?
Regardless of whether you are paying less than the market price, if an agreement was made then there is consideration. If they didn’t pay that lower amount then there is no consideration and the agreement would not be enforceable
What is past consideration and is it enforceable?
Things done in the past cannot constitute consideration for subsequent promises.
Case
Eastwood v Kenton (1840). 11 Ad & El 438
Eastwood was Sarah’s guardian and borrowed £140 to bring her up. When she married, her husband Kenyon promised to off Eastwood debt, he didn’t. Court found past consideration was no consideration.
Is payment of a lesser sum consideration?
No, payment of a lesser sum in the due date is no consideration for the whole sum.
Pinnell’s case 1602 5 Co Rep 117 a
What is distinguishing precedent?
Where the facts of the present case are different to the earlier precedent. Therefore the legal principle is not relevant.
Which case challenged pinnells case?
Foakes v Beer [1884] 9 App Cas 605
In which circumstances is there a presumption that there is no intention to create legal relations?
Domestic and social agreements
When is there a presumption of intention to create legal relations
Commercial
What is the case and points regarding domestic and social agreements?
Balfour v Balfour [ 1919] 2 KB 571
Married couple lived in Sri Lanka but returned to England. Her husband had leave to return but doctor advised to remain in England. wife claimed husband promised to pay £30 per month until she returned. Relations deteriorated and 3 years later Mrs Balfour wants a divorce and claimed the monthly sums that were promised from husband. She first won, husband appealed and was successful.
The judges agreed there was no intention to be legally binding and no consideration offered.
Precedent - for an agreement to be legally binding both parties must provide consideration.
And- for a contract to be legally enforceable the parties must intend to create legal relations.