Contract law essay Flashcards
What makes a contract valid?
Offer, acceptance , consideration and intention to create legal relations.
Define consideration as stated in the case Currie v Misa?
some right, profit or benefit accruing to one party and some detriment, loss or responsibility given suffered by the other party.
What does the following phrase mean - ‘consideration need be sufficient but not adequate’?
It needs to hold some value but not equal as the other party.
Explain the case Chappel v Co ltd v Nestle?
record was sold in return for chocolate wrappers - held as valid consideration as doesnt require something of equal value to be exchanged.
Explain the case of Bolton v Madden?
stated that adequacy of consideration is for parties to consider at the time of making the agreement and not the court.
Define misrepresentation?
An untrue statement of fact made before or at the time of the contract being made that induces another party to enter the contract and incur a loss.
Explain Redgrave v Hurd?
provides an example of an innocent party relying on a untrue statement believing it to be true. Facts of the case prove that a lawyer relied on the statement that the partnership income was £100pa less than what he was told and he was under no duty to verify this so he was able to rescind the contract
What is fraudulent misrepresentation?
Knowingly makes an untrue statement.
What is negligent misrepresentation?
Makes a false statement believing it to be true.
Explain Collins v Godefroy?
Godefroy promises to pay Collin to appear in court but he wasnt entitled to this payment as he was a police officer so legally obliged to give evidence in court.
Explain Harris v Sheffield United Fc Ltd?
supervision by police at football matches held in the stadium went beyond their public duty of protecting the public and amounted to special police service.
Explain the Pinnels case?
claimant was owed the sum of 8 £10’s but the defendant paid 5 £2’s in agreement. The claimant, despite agreeing to the reduced payment, could recover the full amount as part payment of debt is not deemed good consideration unless it includes some non monetary chattel.
Explain the case of Doyle v Olby?
Found that contractual damages arent applicable to misrepresentation as misrepresentaion isnt a term of the contract. Instead damages should be found in the tort of deceit - damages under fraud is to compensate claimant for all theyve lost as far as money can
What can claimant do in the case of misrepresentation other than claim for damages and link to a case?
Can avoid the contract as in Dimmock v Hallet the rent obtainable from the land was greatly exaggerated to induce the party to enter the contract which led to avoidance of the contract being possible.
Why might crystal not be able to rescind the contract due to misrepresentation and give evidence from a case?
It may not be within a reasonable time frame - Leaf v International Galleries. Leaf brought a painting and 5 years later found out the famous artist he thought had painted it hadnt. The court claimed it was not within the reasonable time frame so he couldnt rescind the contract.7869
