#CL- Formation of a contract=legal relations,consideration, privity

Question 1

what are the different situations a contract could be made under

Answer 1

business- employee and employer
commercial- buyer and seller
domestic- family members
social- friends

Question 2

what are the starting positions for business and commercial contracts

Answer 2

they intended to be legally bound

Question 3

what is the starting presumption for social and domestic relations

Answer 3

no intention to be legally bound

Question 4

what are rebuttals

Answer 4

when parties wish to challenge whether they had intention to be legally bound

Question 5

Edwards v skyways ltd

Answer 5

agreement to pay redundancy is binding even though it was ‘ ex gratia’

Question 6

Jones v Vernons pools

Answer 6

Coupon was binding in honour only- rebutted that it was a business contract

Question 7

Esso Petroleum Company- ltd V Commissioners of customs and excise

Answer 7

esso trying to gain business from promotion there was held to be a legal relation

Question 8

Mcgowan v radio buxton

Answer 8

prize in a competition is part of legally binding contract

Question 9

Kleinwort Benson ltd v Malaysian mining cooperation

Answer 9

comfort letters are not legally binding

Question 10

Sadler v Reynolds

Answer 10

halfway house cases - it is for the person arguing a legally binding relation to state their case

Question 11

Balfour v Balfour

Answer 11

agreement not binding as between amicable married couple

Question 12

merritt v merritt

Answer 12

binding as divorced couple regarding maintenance payments

Question 13

Jones v Padavatton

Answer 13

cohabitted people no intention that they would be entering something legally binding

Question 14

Parker v Clarke

Answer 14

if it involves financial security then it will likely be legally binding

Question 15

what does it mean that consideration must be sufficient

Answer 15

it must be real and have some value

Question 16

Chappell v Nestle Co

Answer 16

Chocolate bar wrappers amounted to consideration for the record

Question 17

White v Bluett

Answer 17

natural love and affection are not consideration

Question 18

what are the rules on past consideration

Answer 18

if consideration is done before agreement then it is not acceptable- unless on a job which you would expect payment

Question 19

Re McArdle

Answer 19

work on house had already been done so it was not consideration.

Question 20

where must consideration move from

Answer 20

it must come from the promisee, person can’t sue under contract unless they have provided consideration for a contract

Question 21

Tweddle v Atkinson

Answer 21

father was not a party in agreement himself so therefore he could not claim

Question 22

is performing an existing duty consideration

Answer 22

no it is not

Question 23

collins v godefroy

Answer 23

no consideration as the police officer was already under a duty to go to the court

Question 24

can consideration be owed to a third party

Answer 24

yes as shown by shadwell v shadwell

Question 25

shadwell v shadwell

Answer 25

promise to marry someones daughter in exchange for money from father
this was consideration

Question 26

what are the rules on debt and consideration

Answer 26

only consideration is full repayment unless debtor accepts something else. if you then demand full payment you are estopped.

Question 27

what is the rule on promissory estoppel

Answer 27

is one party agrees to vary contract and other party relies on it then they will be estopped from breaking that promise

Question 28

CL property trust v high trees house

Answer 28

estoppel applied. the landlord could not go back and ask for the full amount of money during world war 2

Question 29

what were the old rules regarding privity

Answer 29

Judges were creative to allow 3rd parties a remedy:
increase compensation so the remedy covers 3rd parties
collateral (implied secondary contracts)
restricted covenants (land law)

Question 30

what is privity

Answer 30

only those involved in contract have privity (right to claim) which can lead to unfair situations

Question 31

what are the rules on privity now

Answer 31

recent consumer law gives 3rd parties more rights

consumer rights of 3rd party act 1999

Question 32

what does the consumer rights of third party act state

Answer 32

allows third parties to claim when:
contract names or identifies them
contract mean’t to be benefit them
parties didn’t explicitly exclude this right when they made contract

Question 33

Dunlop pneumatic tyre co v Selfridge & co ltd

Answer 33

Dunlop was not in contract so could not sell Selfridge for selling below the agreed price

Question 34

Jackson v Horizon holidays

Answer 34

unfair to only award mr Jackson. courts gave extra money to remedy the entire family

Question 35

Shanklin Pier LTD v Detel Products ltd

Answer 35

found to be a collateral contract as it was said that the paint would last at least 7 years

Question 36

Beswick v Beswick

Answer 36

aunt not a party to the contract so therefore she was not bound by it.