#CL- Formation of a contract=legal relations,consideration, privity Flashcards
what are the different situations a contract could be made under
business- employee and employer
commercial- buyer and seller
domestic- family members
social- friends
what are the starting positions for business and commercial contracts
they intended to be legally bound
what is the starting presumption for social and domestic relations
no intention to be legally bound
what are rebuttals
when parties wish to challenge whether they had intention to be legally bound
Edwards v skyways ltd
agreement to pay redundancy is binding even though it was ‘ ex gratia’
Jones v Vernons pools
Coupon was binding in honour only- rebutted that it was a business contract
Esso Petroleum Company- ltd V Commissioners of customs and excise
esso trying to gain business from promotion there was held to be a legal relation
Mcgowan v radio buxton
prize in a competition is part of legally binding contract
Kleinwort Benson ltd v Malaysian mining cooperation
comfort letters are not legally binding
Sadler v Reynolds
halfway house cases - it is for the person arguing a legally binding relation to state their case
Balfour v Balfour
agreement not binding as between amicable married couple
merritt v merritt
binding as divorced couple regarding maintenance payments
Jones v Padavatton
cohabitted people no intention that they would be entering something legally binding
Parker v Clarke
if it involves financial security then it will likely be legally binding
what does it mean that consideration must be sufficient
it must be real and have some value
Chappell v Nestle Co
Chocolate bar wrappers amounted to consideration for the record
White v Bluett
natural love and affection are not consideration
what are the rules on past consideration
if consideration is done before agreement then it is not acceptable- unless on a job which you would expect payment
Re McArdle
work on house had already been done so it was not consideration.
where must consideration move from
it must come from the promisee, person can’t sue under contract unless they have provided consideration for a contract
Tweddle v Atkinson
father was not a party in agreement himself so therefore he could not claim
is performing an existing duty consideration
no it is not
collins v godefroy
no consideration as the police officer was already under a duty to go to the court
can consideration be owed to a third party
yes as shown by shadwell v shadwell
shadwell v shadwell
promise to marry someones daughter in exchange for money from father
this was consideration
what are the rules on debt and consideration
only consideration is full repayment unless debtor accepts something else. if you then demand full payment you are estopped.
what is the rule on promissory estoppel
is one party agrees to vary contract and other party relies on it then they will be estopped from breaking that promise
CL property trust v high trees house
estoppel applied. the landlord could not go back and ask for the full amount of money during world war 2
what were the old rules regarding privity
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)
what is privity
only those involved in contract have privity (right to claim) which can lead to unfair situations
what are the rules on privity now
recent consumer law gives 3rd parties more rights
consumer rights of 3rd party act 1999
what does the consumer rights of third party act state
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
Dunlop pneumatic tyre co v Selfridge & co ltd
Dunlop was not in contract so could not sell Selfridge for selling below the agreed price
Jackson v Horizon holidays
unfair to only award mr Jackson. courts gave extra money to remedy the entire family
Shanklin Pier LTD v Detel Products ltd
found to be a collateral contract as it was said that the paint would last at least 7 years
Beswick v Beswick
aunt not a party to the contract so therefore she was not bound by it.
