Contract - Agreement Cases Flashcards
Smith v Hughes
Oats case - intention to enter legal relations - objective test.
Regardless of a man’s real intentions, if he conducts himself in a way that a reasonable man would believe means acceptance, he is bound by it.
If a buyer has opportunity to inspect goods and purchases based on judgement, rule of caveat emptor applies
Edwards v Skyways
Pilot made redundant, told he could receive ex-gratia payments.
For commercial agreements, there will be a presumption of intention to enter legal relations
Balfour v Balfour
Family agreements - presumption that there is no intention to enter legal relations
Rose and Frank Co v Compton Bros
The presumption re. intention to enter legal relations for commercial agreements can be rebutted.
Merritt v Merritt
Presumption regarding family agreements can be rebutted based on whether any consideration has been given, parties are on good terms, and whether any agreement exists in writing.
Scammell v Ouston
For an agreement, there must be certainty
Allied Marine Transport v Vale do Rio Doce Navegaco SA (The Leonidas)
Offer - definition
“An offer is an expression of willingness to contract on certain terms, made with the intention to be bound by it as soon as accepted by the person to whom it is addressed”
Pharmaceutical Society of GB v Boots Cash Chemists
Goods on sale at a self-service or on display in a shop will be invitations to treat, not offers.
Fisher v Bell
Flick knife
Goods on display will be an invitation to treat
Partridge v Crittenden
Advertisements will usually amount to invitations to treat
Carlill v Carbolic Smoke Ball
advertisement of a reward will amount to a unilateral contract, in which case there is no need to communicate acceptance beyond taking the steps stipulated in the contract.
Williams v Carwardine
When there is an advertisement of a reward, this will amount to a unilateral contract
Barry v Davies
If there is no reserve price, object must be sold to the highest bidder
Spencer v Harding
Tenders requests are invitations to treat and there is usually no obligation on the party requesting the tender.
Blackpool & Fyld Aero Club v Blackpool Borough Council
A request for tenders may amount to a unilateral contract where there has been a commitment to consider all validly received tenders; in these instances failure to consider a valid tender will a,out to a breach
Harvela Investments Ltd v Royal Trust of Canada
Where request for tender stipulates that the highest bidding tender will be accepted, this amounts to a unilateral contract and obliges the party requesting the tender to accept the higher bidder or be in breach.
Entores v Miles East Corp.
Acceptance must be communicated by the offeree or by a duly authorised agent
Powell v Lee
Headmaster job case
Offer must be communicated by the offeror or by duly authorised agent.
Felthouse v Bindley
Offeror cannot impose that the offeree’ silence means acceptance
Re Selectmove
Offeror cannot impose that silence is acceptance, except where there is no reason for the offeree not to bind themselves.
Principle from Roffey Bros does not apply to part repayment of a debt, only to cases where additional money is requested for a service
Adams v Lindsell
Under the postal rule, acceptance will be deemed communicated upon posting. Postal rule will apply where:
1) It was reasonable to use post
2) the acceptance was properly posted
3) the postal rule was not expressly or impliedly excluded
Household Fire Insurance v Grant
Even if acceptance never reaches recipient, acceptance will be deemed communicated as long as it is posted and the conditions laid out in Adams v Lindsell are satisfied
Howell Securities v Hughes
The postal rule will not apply if it has been excluded by either party
Stevenson, Jacques and Co v Maclean
Request for further info does not amount to a counter-offer and is therefore not a rejection of the offer
