Contract Law-paper 3 Flashcards
What is an offer?
A clear statement of terms by which the offeror intends to be legally bound.
(Gibson v Man City Council)
Vending machine: Thornton v Shoe Lane Parking.
What is an invitation to treat?
An indication that someone is willing to enter negotiations.
Adverts: Partridge v Crittenden
Shop shelves/ windows: Fisher v Bell/ PSGB v Boots.
What is the rule on rewards in contract law?
A reward is always an offer not an invitation to treat. When a person fulfils the request the offeror must give the reward.
(Carlill v Carbolic Smoke Ball Co)
What are the requirements for an offer?
- Needs to be clearly communicated.
(Gibson v Man City Council) - Making an enquiry has NO contractual effect.
(Harvey v Facey) - Both parties must know of the contract.
(Taylor v Laird)
When can an offer end?
- When there was a specific time limit in the contract
Or when a reasonable amount of time has passed if no time limit.
(Ramsgate Victoria Hotel v Montefiore) - Counteroffers, these void other offers
- If an offeree dies, has to be clearly commented, cannot be if dead.
- Rejection/ acceptance
- Withdrawl
(Dickingson v Dodds) (Routledge v Grant)
What case says adverts and magazines are always an invitation to treat?
Partridge v Crittenden
What case says goods in a shop window are always invitations to treat?
Fisher v Bell
Shop shelves are ITT, and the customer makes the offer when at the till.
The seller has a right to refuse.
What case says this?
Pharmaceutical society of Great Britain v Boots.
Items in vending machines are offers not ITT, this is because the vendor has no means of accepting an offer so the customer accepts by putting money in the machine.
What case displays this?
Thornton v Shoe Lane Parking.
What fact about acceptance of an offer does Hyde v Wrench show?
If the acceptor doesn’t agree to all terms, it is a counteroffer not acceptance. This is a separate offer and ends the previous contract.
What case states that an enquiry for further information is not a counter offer and will not end an offer?
Stevenson v McLean.
What are the 4 postal rules on accepting an offer?
- Postal rules only apply to acceptance not offers or counteroffers.
- Postal rules apply if post is the usual method of communication between the parties.
- Acceptance takes place when a correctly stamped and addressed envelope is posted.
- You must be able to prove that the letter was posted.
What case were the postal rules first established in?
Adam v Lindell
What are the rules on part- performance?
The other party must agree to pay you by their own free will.
If by free will= part performance.
If no free will= no part performance.
(Sumpter v Hedges)
What are the rules on divisible contracts?
Where a contract can be divided up into separate parts, non-completion of one part is inly breach of that part not whole contract. (Richie V Atkinson)
What are the rules on substantial performance?
No definition of substantial, case dependent.
<10% incomplete usually means enough is done (Hoeing v Issacs).
Where one party has done enough, an appropriate amount of payment is due.
Only applies when all obligations are under a single transaction.
(Dakin and co v Lee).
Uses quantum meruit.
What are the rules on prevention of performance?
If one party prevents the other from carrying out the contract, the innocent party can claim to be paid on quantum meruit basis. (Planche v colburn)
If one party agrees no need to fufill full obligations, paid on quantum meruit basis.
Consent must be a specific aknowledgement that the defaulting party is entitled to be paid for what they’ve done so far. (sumpter v hedges)
