Contract - Agreement and Intention Flashcards
Define ‘Invitation to treat’
An invitation to negotiate with no intention to be bound by specific terms
Tenders are invitations to treat
Blackpool & Fylde Aero Club v Blackpool Borough Council
Goods on display are invitations to treat
Fisher v Bell
Self-service displays are invitations to treat
Pharmaceutical Society of Great Britain v Boots Cash Chemists
Advertisements are invitations to treat; unless
1- offering reward
2- unilateral contracts
(Partridge v Crittenden);
1- Williams v Carwardine
2- Carlill v Carbolic Smoke Ball Co.
Assessment of parties intention to create legal relations is objective
Smith v Hughes
There is a presumption of intent to create legal relations for commercial transactions
Edwards v Skyways
The presumption of intent to create legal relations for commercial transactions can be rebutted
Rose and Frank v Crompton Bros.
There is a presumption that non-commercial agreements do not carry an intent to create legal relations
Balfour v Balfour
The presumption that non-commercial agreements do not carry an intent to create legal relations is rebuttable
Merritt v Merritt
There must be certainty in offer and acceptance
Scammell v Ouston
Timber of fair specification is too vague
Hillas v Arcos
Define ‘Offer’ (+ Authority)
An expression of willingness to be bound by certain terms made with the intention that is shall become binding as soon as it is accepted by the person it is addressed to (Treitel)
Define ‘Acceptance’
An unconditional expression of ascent to the terms of an offer
Acceptance must be communicated by:
1- The offeree
2- An authorised agent
1- Entores v Miles Far East
2- Powell v Lee
Generally, silence cannot constitute acceptance
Felthouse v Bindley
Silence can constitute acceptance where there is no reason why the offeree should not bind themselves
Re Selectmove
A counter offer is implied rejection of the previous offer
Hyde v Wrench
Questions about an offer are not a rejection or counter offer
Stevenson Jacques v McClean
What are the 3 conditions of the postal rule exception?
1- Reasonable to use post
2- Properly posted
3- Postal rule not expressly/ impliedly excluded
If the conditions for the postal rule are met, the acceptance will be validly communicated even if it does not arrive
Household Fire v Grant
There is no authority on whether an acceptance can be retracted once posted
Countess of Dunmore v Alexander
The postal rule was established in which case?
Adams v Lindsell
Exclusion of the postal rule
Howell v Hughes
Acceptance need not be communicated for unilateral contracts
Calill v Carbolic Smokeball Co
What is the rule for auctions with a reserve price?
Contract between buyer and seller once hammer falls s57 SGA
What is the rule for auctions without a reserve price? (+Authority)
Unilateral contract between auctioneer and seller that the highest bid will be accepted (Barry v Davies)
Performance of the contract may be seen as on the terms of the last shot fired
Brogden v Met Railway
General Rule: An offer can be revoked at any time, even if the offeror has agreed to keep it open
Routledge v Grant
The offeror cannot revoke the offer if the offeree has provided consideration to keep it open
Mountford v Scott
For unilateral contracts, revocation is not possible once the act of acceptance has begun
Errington v Errington
Revocation must be communicated by:
1- The offeror
2- A reliable third party
1- Byrne v Van Tienhoven
2- Dickinson v Dodds
If revocation received in business hours but not read, it is deemed communicated
The Brimneys
If the offer was made to the public at large, it can be revoked by the same means as offered, so long as equally prominent
Shuey v United States
