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
Hyde v Wrench
Negotiating Farmers
Acceptance must match terms of offer; any counter offer is an implicit rejection and offeror is no longer bound by initial offer
Routledge v Grant
An offer can be revoked at any time; promises are not binding if they are gratuitous
Mountford v Scott
An offer cannot be revoked if consideration is given for that offer to remain open
Byrne & Co v Van Tienhoven & Co
Notice of withdrawal must be given and communicated (by the offeror) to offeree to be effective.
Byrne & Co v Van Tienhoven & Co
Notice of withdrawal must be given and communicated (by the offeror in this case) to offeree to be effective.
Errington v Errington and Woods
An offer cannot be revoked once acceptance of a unilateral contract has begun
The Brimnes
An exception to the rule that revocation must be communicated where it is reasonable to expect the revocation to have been read
Butler Machine Tool Co Ltd v Ex-Cell-O Corporation
Battle of the forms - last shot wins
Freeman and Lockyer v Buckhurst Park Properties
Agency is created either via actual authority or apparent authority where:
1) representation is made by principal that agent has authority
2) representation is relied on by third party and,
3) in reliance, the third party has altered their position.
An agreement made by an agent with apparent authority will be binding
Chappel v Nestle
(Wrappers)
Consideration need not be adequate ( need not reflect true value), but must be sufficient (have some economic value)
White v Bluett
(Father son debt)
Not doing something will not usually amount to consideration
Ruscorla v Thomas
Past consideration is not good consideration
Lampleigh v Braithwait
Past consideration can be good consideration if three conditions are satisfied - act was done at the promisor’s request.
Re Casey’s Patients, Stewart v Casey
Past consideration can be good consideration if three conditions are satisfied - the parties understood from the outset that the act was to be rewarded in some way
Collins v Godefroy
Performance of existing legal duty is not sufficient legal duty to receive money (unless one goes above and beyond legal duty e.g. Ward v Byham, Williams v Williams, Glasbroom Bros Ltd v Lamorgan County Council).
Getreide Geselschaft v Contimar
Postal rule - wrong address
Acceptance upon receipt of wrongly addressed letter
Shuey v US (US law)
Revocation of a unilateral offer must be communicated through the same channel as offer provided it has the same prominence.
Daulia v Flour Mill Bank
There is an implied obligation for the offeror not to prevent offeree performance.
