Contract law Flashcards
What four elements must be present for there to be a contract?
- offer
- acceptance
- consideration
- legal intent
What does the case of gushing v Lynn tell us about an offers validity from the offeree
“the words contained in an agreement must be clear so the parties can be sure of the terms upon they are contracting”
Defendant said they might buy another horse if the claimant was ‘lucky’. The word lucky was to vague to infer an offer
Reveille v Anotech
The two companies had been in negotiations which were never completed to feature one of Anotechs products within the shows in which Reveille produced. Anotech signed short agreement which they sent to Reveille and after their products were featured. The courts held in favour of Reveille as the only reason for them to sign the contract would be for their own (Reveille) benefit.
What is a bilateral contract
A contract made between TWO people both who promise something
e.g Dom offers to sell his car to Rachel for £1,000. Rachel accepts.
Dom’s promise (consideration) - to sell Rachel his car
Rachel’s promise (consideration) - to pay Dom £1,000
What is a unilateral contract
when one person has promised something if the other party performs an act of some sort.
E.g- Dom says to Rachel on Sunday ‘I’ll sell my car to you for a grand if you wash and polish it this Wednesday’
Doms promise (consideration)- to sell Rachel his car for £1000 if she washes and polishes his car on Wednesday
Rachel’s promise (consideration)- NOTHING
If Rachel does nothing, Dom’s offer expires on Wednesday
BUT if Rachel washes and polishes the car on Wednesday Dom MUST sell his car to her for £1000 as she is effectively accepting Dom’s offer by performing the act of washing and polishing.
What is an offer
A statement of the terms upon which a person is prepared to be bound by a contract
what is an offeree
The person to whom the offer is made
What is the offeror
The person who makes the offer
What did the case of Gibson v Manchester City council state about the validity of an offer
There must a formal application (or some kind of formality ) for an invitation to sell or willingness to sell to be a legal contract.
Case concerning the C who was offered to buy their house at a discounted price they had written a letter to the council accepting this invitation of sale however during this time the government changed and property sale stopped.
What is an invitation to treat ?
An indication that one person is willing to negotiate a contract with another, but that he or she is not yet willing to make a legal offer. IT CANNOT MAKE A CONTRACT
Partridge v Crittenden 1968
D placed an advertisement in mag to sell some bramble finches however the protection of birds act made this illegal and so D was convicted. However this advert was considered a mere invitation to treat and not an offer therefore conviction was quashed
Carhil v Carbolic smoke ball
placed an advert in magazine stating they would pay £100 to anyone who used their product and still got the flue after using the product in the correct specialised way. Carhil followed these instructions and still got ill after using their product. Carbolic smoke tried to argue that it was an invitation to treat however the courts ruled it was a UNILATERAL offer.
Fisher v Bell
D display flick knife in window of a shop window of which was illegal. However it would held to be an invitation to treat not an offer
