Contract Formation P3 Flashcards
Includes formation, acceptance, consideration, privity of contract and intention to create legal relations
what is the definition of an offer
a statement of willingness to enter into a contract on stated terms, if they are accepted by the party or parties to whom they are addressed
who is the offeror
party of person making the offer
who is the offeree
party or person to whom the offer is made
what makes an agreement
an offer + acceptance = agreement
what are the key elements for contract formation
offer
acceptance
consideration
privity
intention to create legal relations
what is the mirror image rule
if an offer is exactly matched by the acceptance then the courts are satisfied there is an agreement
the wording of an offer must be ….
definitive in terms
which case showed that the wording of a contract must be definitive in terms as the wording wasnt precise enough to make a legally recognised offer
Gibson V Manchester city council (1979)
what are the two types of offer
bilateral
unilateral
what is a bilateral offer
requires both the offeror and offeree to do something. Both parties are obliged to do so
what is a unilateral offer
is an agreement to exchange for performance if the potential performer chooses to perform an act. No obligation to perform the act from the offerees side
what is an invitation to treat
an opportunity or an expression of willingness to enter into negotiation
are advertisements usually an invitation to treat or a unilateral offer
usually an invitation to treat but it can be a unilateral offer if terms are definitive and need to be fulfilled
what is the leading case for invitation to treat as it was an expression to show willingness to recieve potential offers
Partridge V Crittendon (1968)
which case involved a new medicine and the C was entitled to money as the unilateral offer means the offeree does not need to communicate intent to accept, it was possible to make an offer to the world and the depsoit demostrated intent to pay the money suggested in the add
Carlil V Carbolic smoke ball (1893)
what did Leftkowitz V Great Minneapolis Surplus store (1957) show
a binding obligation on the D arose from the specific language of the add. A performance has been promised in return for a performance which was recieved (if they only wanted female customers they should have stated)
what cases showed the display of goods being an invitation to treat
Pharmaceutical Society of GB V Boots (1953)
Fisher V Bell (1961)
how does goods at an auction work in terms of offers
invitation to treat when biding and acceptance when the hammer is hit
an auctioner does not make an offer - British car auction V Wright
a request for information is…
not an offer, it is an invitation to treat
what case shows a request for information is not an offer
Harvey V Facey (1893)
how do offers work in terms of machines
machine can make an offer
accaptance occurs when money is placed and ticket is given
contract cannot be subject to terms that are present after acceptance has been taken place
what did Thornton V shoe Lane Parking (1971) show
contracts cannot be subject to terms that are present after acceptance has taken place
how many ways are there to end an offer
6
what are the 6 ways to end an offer
revocation
rejection
counter-offer
lapse of time
death
acceptance
what is revocation of an offer
means to withdraw the offer (offeror)
when can an offer be revoked
anytime before the offeree accepts
which case showed that dispite the offeree not seeing the revocation, it was valid as it was given in the same notoriety as the original offer
Shuey V US (1875)
what did Byrne V Van Tienhoven (1880) show
the general rule of revocation is that it must be effectively communicated
D should have taken in to consideration how long postage would take and that it wasnt the usual form of communication for the offer (Telegram was sent back and was instant communication of that time)
what case showed that the mortgage payments were an ongoing act of acceptance, as long as they continued to pay then the offer couldnt be revoked
Errington V Errington (1952)
what did Dickinson V Dodds (1876) show
if offeree hears about the revocation from a reliable third party this will be considered effective communication
what is laspe of time as a way to end an offer
once the fixed duration of an offer to be accepted is expired then there is no longer an offer
when no fixed time is stated then the courts will conider a ‘reasonable time’ but this depend on the nature of the offer
which case showed that where there is no time set on an offer the courts will consider what is a reasonable time for that offer to last
Ramsgate Victoria Hotel V Motefiore (1866)
what is rejection as a way to end an offer
to say ‘no’ to the offerors offer
once an offer is rejected…
it cannot be accepted by the same person later on who rejected it
what is a counter-offer
offeree comes back with their own offer - switching the roles around of the parties
what did Hyde V Wrench (1840) show
a counter offer terminates the original offer
what did Stevenson V McLean (1880) show
there was a binding contract when c sent acceptance on monday. Cs request for more information was not a counter-offer
what is death of a party as a way to end an offer
if the offeree dies then offer ends
if offeror dies, offer can still continue untill the offeree learns of the death
if offer is to perform a personal service and offeror dies then the offer ends
which case is used for death of a party
Bradbury V Morgan (1862) - death of offeror did not prevent contract from going ahead
what is acceptance as a final way to end an offer
the offeree effectively communicated their conditional agreement to all terms of the offer
what is the general rule for acceptance
must be effectively communicated