Contract Law

Question 1

What are the requirements for a valid contract

Answer 1

Offer and acceptance
Consideration
Intention to create legal relations
Capacity to form a contract
Legality

Question 2

Harvey v facey

Answer 2

Harvey : will you sell bumper hall pen? Telegraph lowest cash price (request for information)

Facey: lowest cash price bumper hall pen £900 (information)

Harvey: we agree to buy the bumper hall pen for £900 (offer: but as there is no acceptance there is no contract)

Question 3

Invitation to treat

Answer 3

Statements that open negotiations but are not actually offers

Fisher v bell - flick knives in shop window

Pharmaceutical society v boots - offer made when take goods to cash desk

Question 4

Termination of offers

Answer 4

Hyde v wrench

Question 5

Expiry of specified time

Answer 5

Lapse of reasonable time - hotel v montefiore

Withdrawal of offer - Dickinson v Dodds

Death of offeree

Question 6

Communication of acceptance

Answer 6

The general rule - acceptance is effective only when recieved by offeror - entores v miles far east corp (1955)

Instantaneous communications - effective only when received by offeror

Question 7

The postal rule

Answer 7

Effective once posted

• it must be reasonable to use the post
• the letter must validly stamped and correctly addressed
• the acceptance by post will create a binding agreement even if the letter is never received

House fire insurance v grant (1879)

Question 8

Acceptance by email

Answer 8

Email is deemed NOT to be instantaneous if negotiations for a contract are conducted through e-mail the postal rules do not apply

Question 9

Unilateral contracts

Answer 9

Contains the same ingredients as a bilateral contract just created in a different way

Offers may be accepted by anyone who fulfils the terms of the offer

Offer cannot be withdrawn his offer if a person has embarked on performance

Offeror must simply take reasonable steps to give such notice of withdrawal and communicate notice of the revocation in the same form as he communicated the original offer

Question 10

What is past consideration

Answer 10

If a promise is made after an act has been done it is called past consideration and is not usually accepted as consideration in the eyes of the law

Re mcardle (1951)

Question 11

Consideration need not be of adequate value

Answer 11

Thomas v Thomas (1842)
£1 per year and keep the house in good repair