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Formation Flashcards

1
Q

What is a Bilateral contract?

A

Promise by one party has been exchanged for another promise e.g business agreement

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2
Q

What is a Unilateral contract?

A

One party promises to do something in return for an act from the other party e.g insurance

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3
Q

What is an offer?

A

A statement of willingness to contract on the specified terms

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4
Q

What are the two types of offer?

A

Invitation to treat
Invitations to tender

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5
Q

What is an Invitation to treat?

A

Merely inviting the other party to offers and the other party is free to accept/reject

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6
Q

What are the two cases that can be applied to an Invitation to treat?

A

Pharmaceutical Society v Boots
Partridge v Critteneden

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7
Q

What does Pharmaceutical Society v Boots say about price tags?

A

A contract is formed when goods are brought to cash desk not the price tag

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8
Q

What is the case of Partridge v Crittenden?

A

Advertisement of cocks and hens at 25s each

Invitation to treat not offer

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9
Q

What is meant by an Invitation to tender?

A

Can amount to an offer if that is the intention, generally is an ITTr

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10
Q

What is the general rule with auctions?

A

When the hammer falls the contract is made

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11
Q

What case relates to the display of goods?

A

Fisher v Bell

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12
Q

What is the case of Fisher v Bell?

A

Arrested for displaying flick knife in shop window can’t charge with offer to sale but with invitation to treat

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13
Q

Is a statement of minimum price an offer?

A

No

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14
Q

What is the case Harvey v Facey?

A

Facey wrote lowest price acceptable to sell farm as £900 doesn’t mean you can accept at that price

statement of lowest price not offer
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15
Q

If an advertisement indicates a course of action in return for payment are they bound by the offer?

A

Yes

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16
Q

What is the case of Carlill v Carbolic Smoke Ball Co?

A

Promised if use the smoke balls and got ill they’d give £100, her conduct showed her acceptance so can sue

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17
Q

Does an offer need to be communicated to the offeree?

A

Yes

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18
Q

What case relates to communicating the offer to the offeree?

A

Taylor v Laird

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19
Q

What is the case Taylor v Laird?

A

Taylor changed his position from captain to crew member on ship without telling employer so could not be paid crew pay

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20
Q

Does the offeree need to have knowledge of the offer?

A

Yes

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21
Q

What case relates to having knowledge of the offer?

A

Inland Revenue v Fry

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22
Q

What is the case of Inland Revenue v Fry?

A

Someone sent cheque to clear debt, was cashed but they didn’t know it had been cashed so had the right to chase them for it

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23
Q

Can the terms of an offer be vague?

A

No they must be certain

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24
Q

What case relates to an offer being certain?

A

Gutting v Lynn

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25
What is the case of Guthing v Lynn?
Promised to pay £5 more ‘if the horse is lucky’ to vague to enforce
26
Can you withdraw an offer at any point before it’s accepted?
Yes
27
What case is about when an offer was withdrawn before acceptance?
Routledge v Grant (consideration needed e.g deposit)
28
Does an offerer need to communicate a withdrawal?
Yes
29
What is the case of Byrne v Van Tienhoven?
Withdrawal letter arrived after acceptance letter sent | Withdrawal invalid
30
Can a third party communicate a withdrawal?
Yes if they are a reliable third party
31
What is the case of Dickinson v Dodds?
Berry an acquaintance they could rely on withdrew an offer
32
Can a unilateral contract be withdrawn while the offeree is performing?
No
33
What is the case of Errington v Errington & Woods?
Father promises house to son if mortgage payment paid off. Father died family want house remains with son if he pays mortgage.
34
Can an offer be terminated by acceptance refused?
Yes eg counter offer, withdrawal or time lapsed
35
What is the case of Ramsgate Victoria Hotel v Montefiore?
Offered to buy shares in June, issued in November, held the offer to buy had lapsed
36
Is a contract binding if both parties have not expressed acceptance?
No both parties need to express acceptance
37
What is meant by acceptance being unconditional?
Must accept exact terms proposed no changes
38
What case says introducing a new term is a counter offer?
Hyde v Wrench
39
What happened in the case of Hyde v Wrench?
Offers to sell farm for £1000 counters with £950 declines and tries the original price but the counter rejects original
40
What case says that requesting information is not a counter offer?
Stevenson v McLean
41
What is the case of Stevenson v McLean?
Requested if delivery could be staggered not a counter offer
42
Does acceptance need to be communicated?
Yes
43
What case says that acceptance cannot be silence?
Felthouse v Bindley
44
What is the case of Felthouse v Bindley?
‘If I hear no more the horse is mine for £30’ can’t prove horse his as didn’t accept ```silence not acceptance```
45
Can performance be enough in a unilateral contract ?
A contract where acceptance does not need to be communicated as **performance is sufficient** Carbolic smoke balls
46
If an offeror specifies a method of acceptance does it have to be abided by?
Yes
47
What is the case of Yates v Pulleyn?
Option to purchase land had to be in writing in registered post / was sent in normal post
48
What is the postal rule?
Acceptance by post is complete when the letter has been posted even if lost destroyed or delayed
49
What is the case of Adam’s v Lindsell?
Post was delayed
50
What is the case of Household Fire Insurance v Grant?
Posted but not received
51
When does the postal rule not apply? (4)
Not posted properly Not properly addressed Postal rule is expressly excluded If unreasonable to use post
52
What is the rule when accepting with email?
Contract is accepted when received within **office hours**
53
What is the case of Brinkbon v Stahag Stahl?
Telex recieved out of office hours
54
What do the Electronic Commerce Regulations 2002 state?
Contract concluded by purchaser accepting e.g clicking on icon and receiving electronic receipt
55
What is the case of Fitch?
Can't claim reward if don't have knowledge of the offer
56
What are the three ways to terminate an offer?
Revocation Lapse Death
57
At what point can a contract be revoked until? | Case example?
Offer can revoked any time until it is accepted Routledge v Grant
58
In a unilateral contract can the offer be revoked if the person has already performed? (Case)
No Errington v Errington
59
What is meant by an offer lapsing?
An offer will lapse after a certain **time period** that is **reasonable depending on the circumstances**
60
What is the case of Ramsgate v Victoria Hotel?
Time lapse of 5 months
61
When can an offeree still accept even if the offerer has died?
If it did not include a personal service from the person then yes
62
What is consideration?
An act by one party in exchange for the promise of act from another
63
Can consideration be in the past?
No
64
What is the case of Re McArdle?
Mother carried out work then the contract was signed | Consideration cant be in past unless understanding payment would be made
65
Can consideration be from someone other than the promisee (case)?
No Tweddle v Atkinson
66
Does consideration need to be adequate (market value)?
No but must be sufficient
67
What is the POL from Chapel v Nestle?
Something must be given does not need to be equal
68
What is the case of Ward v Byham?
Father promised mother money if she kept the child well looked after and happy no obligation in law to keep child happy so good consideration
69
What is meant by an existing duty?
If a person is already expected to perform an act then it is not consideration unless the go beyond that
70
What is the case of Collins v Godfroy?
Performance of an existing duty is not consideration
71
What is the case of Glasbrook Bros v Glamorgan?
Only if consideration exceeds existing duty then it is consideration
72
What is the case of Stilk v Myrick?
Performance of an existing contractual duty is not enough 2 members of crew deserted no new consideration for remaining crew as only 2
73
What is the case of Hartley v Ponsonby?
17 desert 19 remain more work so good consideration
74
What is the point of law from Williams v Roffey?
Avoiding a detriment is good consideration
75
What is the case of Pinnels?
Part payment of a debt is not good consideration for a promise to get rid of the remaining balance
76
What are the two types of legal relations?
Domestic and social Commercial and business
77
What is the case of Balfour v Balfour?
Agreement of couple living together in house will not have intention
78
What is the point of law from Merritt v Merritt?
Intention is presumed between parties who have separated
79
What is the point of law from Simpkins v Pays?
If money exchanged then it’s usually legally binding
80
Point of law from Parker v Clarke?
Giving up a house made agreement legally binding
81
What is the case of Wilson?
Agreement to share lottery winnings between friends given intention
82
What does the case of Rose v Frank say?
If the agreement falls between commercial and social the ***claimant*** must ***prove*** contractual ***intention***
83
What is the case of McGowan v Radio Buxton?
Prize of car turned to be toy car judge said intention to create L relations
84
Is an offer of free gifts to promote a business legally binding and what case?
Yes Esso Petroleum v C&E
85
Do ‘comfort letters’ give rise to legal relations? | Case example?
No | Kleinwort Benson v Malaysian Mining
86
Can a third party to a contract usually sue on that contract?
Usually no
87
What is the case of Dunlop v Selfridges?
Dunlop and Selfridges both bought tires with contracts stating they wouldn’t sell below a certain price. Selfridges discounted tires and Dunlops legal action failed as no contract.
88
What act allows third parties to claim under a contract?
Contracts (Rights of Third Parties) Act **1999**
89
What allows a third party to claim in a contract (not statute)?
If the contract contains an express term (**name** mentioned) or if terms **benefit** third party
90
What is the case of Nishhin Shipping v Cleaves?
Clause for payment of a broker between charters and ship owners able to recover under act
91
What does Jackson v Horizon Holidays state?
If a third party is a valid party to the contract he has access to all remedies

Contract Law (7 decks)

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