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Contract Law > Formation > Flashcards

Formation Flashcards

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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 was invitation in 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 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
Q

What is the case of Guthing v Lynn?

A

Promised to pay £5 more ‘if the horse is lucky’ to vague to enforce

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26
Q

Can you withdraw an offer at any point before it’s accepted?

A

Yes

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27
Q

What case is about when an offer was withdrawn before acceptance?

A

Routledge v Grant (consideration needed e.g deposit)

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28
Q

Does an offerer need to communicate a withdrawal?

A

Yes

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29
Q

What is the case of Byrne v Van Tienhoven?

A

Withdrawal letter arrived after acceptance letter sent so withdrawal invalid

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30
Q

Can a third party communicate a withdrawal?

A

Yes if they are a reliable third party

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31
Q

What is the case of Dickinson v Dodds?

A

Berry an acquaintance they could rely on withdrew an offer

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32
Q

Can a unilateral contract be withdrawn while the offeree is performing?

A

No

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33
Q

What is the case of Errington v Errington & Woods?

A

Father promises house to son if mortgage payment paid off. Father died family want house remains with son if he pays mortgage.

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34
Q

Can an offer be terminated by acceptance refused?

A

Yes eg counter offer, withdrawal or time lapsed

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35
Q

What is the case of Ramsgate Victoria Hotel v Montefiore?

A

Offered to buy shares in June, issued in November, held the offer to buy had lapsed

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36
Q

Is a contract binding if both parties have not expressed acceptance?

A

No both parties need to express acceptance

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37
Q

What is meant by acceptance being unconditional?

A

Must accept exact terms proposed no changes

38
Q

What case says introducing a new term is a counter offer?

A

Hyde v Wrench

39
Q

What happened in the case of Hyde v Wrench?

A

Offers to sell farm for £1000 counters with £950 declines and tries the original price but the counter rejects original

40
Q

What case says that requesting information is not a counter offer?

A

Stevenson v McLean

41
Q

What is the case of Stevenson v McLean?

A

Requested if delivery could be staggered not a counter offer

42
Q

Does acceptance need to be communicated?

A

Yes

43
Q

What case says that acceptance cannot be silence?

A

Felthouse v Bindley

44
Q

What is the case of Felthouse v Bindley?

A

‘If I hear no more the horse is mine for £30’ can’t prove horse his as didn’t accept

silence not acceptance
45
Q

Can performance be enough in a unilateral contract ?

A

A contract where acceptance does not need to be communicated as performance is sufficient Carbolic smoke balls

46
Q

If an offeror specifies a method of acceptance does it have to be abided by?

A

Yes

47
Q

What is the case of Yates v Pulleyn?

A

Option to purchase land had to be in writing in registered post / was sent in normal post

48
Q

What is the postal rule?

A

Acceptance by post is complete when the letter has been posted even if lost destroyed or delayed

49
Q

What is the case of Adam’s v Lindsell?

A

Post was delayed

50
Q

What is the case of Household Fire Insurance v Grant?

A

Posted but not received

51
Q

When does the postal rule not apply? (4)

A

Not posted properly
Not properly addressed
Postal rule is expressly excluded
If unreasonable to use post

52
Q

What is the rule when accepting with email?

A

Contract is accepted when received within office hours

53
Q

What is the case of Brinkbon v Stahag Stahl?

A

Telex recieved out of office hours

54
Q

What do the Electronic Commerce Regulations 2002 state?

A

Contract concluded by purchaser accepting e.g clicking on icon and receiving electronic receipt

55
Q

What is the case of Fitch?

A

Cannot claim the reward if does nothing have knowledge of the offer

56
Q

What are the three ways to terminate an offer?

A

Revocation
Lapse
Death

57
Q

What is meant by revocation of an offer?

A

Offer can revoked any time until it is accepted
Routledge v Grant

58
Q

In a unilateral contract can the offer be revoked if the person has already performed? (Case)

A

No Errington v Errington

59
Q

What is meant by an offer lapsing?

A

An offer will lapse after a certain time period that is reasonable depending on the circumstances

60
Q

What is the case of Ramsgate v Victoria Hotel?

A

Time lapse of 5 months

61
Q

When can an offeree still accept even if the offerer has died?

A

If it did not include a personal service from the person

62
Q

What is consideration?

A

An act by one party in exchange for the promise of act from another

63
Q

Can consideration be in the past?

A

No

64
Q

What is the case of
Re McArdle?

A

Mother carried out work then the contract was signed

65
Q

Can consideration be from someone other than the promisee (case)?

A

No Tweddle v Atkinson

66
Q

Does consideration need to be adequate (market value)?

A

No but must be sufficient

67
Q

What is the POL from Chapel v Nestle?

A

Something must be given does not need to be equal

68
Q

What is the case of Ward v Byham?

A

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
Q

What is meant by an existing duty?

A

If a person is already expected to perform an act then it is not consideration unless the go beyond that

70
Q

What is the case of Collins v Godfroy?

A

Performance of an existing duty is not consideration

71
Q

What is the case of Glasbrook Bros v Glamorgan?

A

Only if consideration exceeds existing duty then it is consideration

72
Q

What is the case of Stilk v Myrick?

A

Performance of an existing contractual duty is not enough 2 members of crew deserted no new consideration for remaining crew as only 2

73
Q

What is the case of Hartley v Ponsonby?

A

17 desert 19 remain more work so good consideration

74
Q

What is the point of law from Williams v Roffey?

A

Avoiding a detriment is good consideration

75
Q

What is the case of Pinnels?

A

Part payment of a debt is not good consideration for a promise to get rid of the remaining balance

76
Q

What are the two types of legal relations?

A

Domestic and social
Commercial and business

77
Q

What is the case of Balfour v Balfour?

A

Agreement of couple living together in house will not have intention

78
Q

What is the point of law from Merritt v Merritt?

A

Intention is presumed between parties who have separated

79
Q

What is the point of law from Simpkins v Pays?

A

If money exchanged then it’s usually legally binding

80
Q

Point of law from Parker v Clarke?

A

Giving up a house made agreement legally binding

81
Q

What is the case of Wilson?

A

Agreement to share lottery winnings between friends given intention

82
Q

What does the case of Rose v Frank say?

A

If the agreement falls between commercial and social the claimant must prove contractual intention

83
Q

What is the case of McGowan v Radio Buxton?

A

Prize of car turned to be toy car judge said intention to create L relations

84
Q

Is an offer of free gifts to promote a business legally binding and what case?

A

Yes Esso Petroleum v C&E

85
Q

Do ‘comfort letters’ rise to legal relations and what case?

A

No Kleinwort Benson v Malaysian Mining

86
Q

Can a third party to a contract sue on that contract?

A

Usually no

87
Q

What is the case of Dunlop v Selfridges?

A

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
Q

What act allows third parties to claim under a contract?

A

Contracts (Rights of Third Parties) Act 1999

89
Q

What allows a third party to claim in a contract (not statute)?

A

If the contract contains an express term (name mentioned) or if terms benefit third party

90
Q

What is the case of Nishhin Shipping v Cleaves?

A

Clause for payment of a broker between charters and ship owners able to recover under act

91
Q

What does Jackson v Horizon Holidays state?

A

If a third party is a valid party to the contract he has access to all remedies

Contract Law (5 decks)

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