contract Flashcards
What is the difference between an offer and an invitation to treat?
An offer is a definitive proposal that can be accepted to form a contract, while an invitation to treat is merely an indication that one is willing to negotiate.
Cases: Fisher v. Bell, Partridge v. Crittenden, Pharmaceutical Society of Great Britain v. Boots Cash Chemists, Lefkowitz v. Great Minneapolis Surplus Store.
What was the ruling in Lefkowitz v. Great Minneapolis Surplus Store?
The court ruled that the advertisement constituted a clear offer, and the plaintiff was entitled to the furs as the offer was explicit and left no room for negotiation.
Example: The advertisement stated the price and conditions clearly.
What was the outcome of Fisher v. Bell?
The court held that displaying a flick knife in a shop window was an invitation to treat, not an offer.
Lord Parker CJ stated that such displays do not constitute an offer.
What did the court decide in Partridge v. Crittenden?
The advertisement for bramble finches was deemed an invitation to treat, indicating no intention to sell.
The court found no binding offer was made.
What was the ruling in Pharmaceutical Society of Great Britain v. Boots Cash Chemists?
The court determined that goods displayed in a self-service shop were invitations to treat, with the contract formed at the cash desk when the customer made an offer.
The pharmacist could accept or reject the offer at that stage.
What is a unilateral contract?
A unilateral contract is an agreement where one party makes a promise in exchange for the other party’s act.
Example: Carlill v. Carbolic Smoke Ball Co.
How can an offer be terminated?
An offer can be terminated by revocation, rejection (including counter-offer), or lapse of time.
Cases: Henthorn v. Fraser, Byrne v. Van Tienhoven, Hyde v. Wrench.
What was the outcome of Henthorn v. Fraser?
The court held that the contract was formed when the letter of acceptance was posted, not when the revocation letter was received.
The revocation was ineffective until received.
What did the court decide in Byrne v. Van Tienhoven?
The court ruled that a contract existed when the plaintiff accepted the offer, despite the defendant’s later revocation.
The acceptance was valid upon posting.
What was the ruling in Hyde v. Wrench?
The court found that the original offer was terminated by the plaintiff’s counter-offer, which was not accepted.
The plaintiff’s attempt to accept the original offer was invalid.
What was the outcome of Harvey v. Facey?
The court held that the defendant’s response was not an offer but merely a statement of the lowest price, thus no contract was formed.
The communication did not indicate willingness to sell.
What is the significance of acceptance in contract law?
Acceptance must be communicated to the offeror, but there are exceptions like the postal rule.
Cases: Felthouse v. Bindley, Kelly v. Cruise Catering, Holwell Securities v. Hughes.
What was the ruling in Felthouse v. Bindley?
The court determined that the nephew did not accept the offer as he did not respond, thus no contract was formed.
The uncle had no property in the horse.
What was the outcome of Kelly v. Cruise Catering?
The Supreme Court held that the contract was formed in Dublin when the plaintiff posted the signed contract.
Acceptance occurred according to the postal rule.
What did the court decide in Holwell Securities v. Hughes?
The court ruled that acceptance must be communicated and the plaintiff’s acceptance was invalid as it was not received.
The wording required the defendant to have knowledge of the acceptance.
What was the ruling in R v. Clarke?
The court found that the plaintiff was not entitled to the reward as he did not act with the intention of accepting the offer.
He had forgotten about the reward at the time of acceptance.
What was the outcome of Williams v. Carwardine?
The court ruled that the plaintiff was entitled to the reward despite her motive for providing information, as acceptance of the offer was valid.
The motive was irrelevant to the acceptance.
What was decided in Minister for Industry and Commerce v. Pim Bros?
The court held that the display of the coat was not an offer for sale but merely a statement of price, thus no contract was formed.
The advertisement did not constitute an offer.
What is past consideration in contract law?
Past consideration refers to an act that has already been performed before a promise is made, which is generally not enforceable.
Cases: Roscorla v. Thomas, Re McArdle.
What was the ruling in Re McArdle?
The court held that the promise made after the work was completed was not legally enforceable as it was past consideration.
The promise was made after the consideration was provided.
What constitutes sufficient consideration?
Sufficient consideration must have economic value and be part of the agreement.
Cases: White v. Bluett, O’Neill v. Murphy, Pando v. Fernandez.
What was the ruling in White v. Bluett?
The court held that the father’s promise to discharge his son from debt was not supported by consideration as it had no economic value.
Refraining from complaints is not sufficient consideration.
What was decided in O’Neill v. Murphy?
The court ruled that the builder’s promise to work in exchange for prayers was not sufficient consideration.
Prayers were deemed to have no economic value.
What was the outcome of Pando v. Fernandez?
The court found that prayers have no value as consideration, and the plaintiff’s claim was not enforceable.
The plaintiff sought a share of a lottery win based on a promise made.
v. Murphy [1936] NI 16
Builder promised to work in exchange for prayers; prayers not considered a sufficient consideration.
Pando v. Fernandez (1984) 127 Misc 2d 224
Prayers have no value as consideration. The plaintiff, a deeply religious minor, sought a share of the defendant’s $2.8 million lottery win after promising to pray for winning numbers. Court held that he could not show his prayers were effective.
Emphasized that the contract was not that the numbers would win but that the saint would make the numbers win.
Chappell v. Nestle [1960] AC 87
Defendant offered a record for sale for 7 pence plus three chocolate bar wrappers. Court held that wrappers were part of the consideration as they induced purchases of chocolate.
No intrinsic value to the company.
Revenue Commissioners v. Moroney [1972] IR 372
A father purported to sell a pub to his sons for £16,000, but the court found it was a sham transaction to avoid estate duty tax. No consideration was present, and the transaction was treated as a gift.
Forbearance
In Hamer v. Sidway (1891) 124 NY 538, a rich uncle promised his nephew £5000 if he refrained from certain activities until 21. Court held that the nephew’s forbearance was good consideration.
Performance of existing duty as consideration
In Collins v. Godefroy (1831) 1 B&D 950, the plaintiff was subpoenaed to court and promised a fee, but could not enforce it as he had a legal duty to attend.
Glasbrook v. Glamorgan [1925] AC 27
A coal mine owner sought police protection during a strike. Court held that the provision of constables was for valuable consideration as it exceeded what was deemed necessary.
Part payment as consideration
Pinnel’s case (1602) 5 Co. Rep 117a states that payment of a lesser sum in satisfaction of a greater is no satisfaction of the whole. This applies to liquidated debts.
D and C Builders v. Rees [1965] 3 All ER 837
Plaintiffs owed £482 by the defendant accepted £300 in full settlement under duress. Court allowed appeal based on Pinnel’s rule.
Foakes v. Beer (1884) 9 AC 605
Dr. Foakes agreed to pay £500 immediately and the rest in installments. Court held he was liable for interest based on Pinnel’s rule.
Heatherridge Associates Ltd. v. Curran [2019] IEHC 570
Defendants owed money for architectural work but an agreement to lower the price was unenforceable due to Pinnel’s rule.
