Contract Structure

Question 1

Negotiaions

Answer 1

1. Is the statement an invitation to treat or a unilateral contract
2. Is a statemnt a reqeust for information or a counter offer
3. Is there a counter offer/ response to a reqeust for information
4. Is there acceptance
   * Electronic communication
   * Post
5. Has offer ended

Question 2

Intention to create legal relations

Answer 2

Assumed in business to business not in social context. Can rebutted. (Balfour v Balfour); (Merrit v Merrit)

Question 3

Considertation

Answer 3

1. Exchange of something of value
2. Can be executed (act in return for a promise) or executory (promise in return for a promie)
   * Consideration need not be adequate but must be sufficient (Chappell v Nestle)
   * Past consideration is not good consideration (Re McArdle)
   * Consideration must move from the promisee to the promisor (Tweddle v Atkinson). This links to PRIVITY
   * A promise to perform an existing duty is not good consideration. See Collins v Godefroy compare with Williams v Roffey Bros.
   * A Promise to accept part payment of an existing debt is not good consideration (Foakes v Beer). This is subject to the PROMISSORY ESTOPPEL (High Trees)
3. Promissory Estoppel requires is an equitable doctrine (so discretionary). Only works when:
   * It is modifying an existing obligation
   * The promisee has relied upon it to their detriment
   * It only suspends rights of promisor
   * Promisee must have behaved equitably.