Contract - Offers Flashcards
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of the same mind - general principle
If someone knows that there is a mistake in the contract is it valid?
Yes, the party is under no obligation to correct them, unless they have taken active steps to sustain/promote belief.
What is the conflict between Hartog and Smith?
Hartog suggests that knowledge of mistake can invalidate contract whereas Smith suggests the appearance of agreement is sufficient.
How can this be resolved?
There is a distinction between a mistake in content of contract and mistake in context (state of mind of buyer), overall appearance rules
How to distinguish between offer and invitation to treat?
Investigate where they become legally bound.
Unilateral offer?
Offer made to entire world usually an ad which says ‘if you do this, we will give you this’ Carlill v. Carbolic Smoke Ball Company
Invitation to treat
Inviting someone to make an offer! Can be an ad also.
If there’s a posting about the odds on a horse race, what’s going on?
Bilateral contract?
Most common type of contract, parties reach agreement through exchange of promises
Difference between unilateral and bilateral contract?
Unilateral contracts are when one party only fulfills its obligation if the other party does (e.g. reward for finding dog). Bilateral, both parties have to fulfills obligations (e.g. employment).
What is an auction?
Auctioneer yelling stuff is all invitation to treat, bidder makes offer, acceptance is when gavel bangs down.
What is the supermarket?
Things on shelves are invitations to treat, buyer makes offer when taking products to till, acceptance is when things are scanned by cashier.
Buyer: How much are your rabbit skins?
Seller: We have 30 at £60
Buyer: I’ll take them!
This is not a valid contract, as the person giving information is not making an offer, merely answering an enquiry.
