Formation of a contract Flashcards
Harvey v Facey
The property was owned by Facey. Harvey wanted to buy it. Harvey telegrammed Facey in the following way:
Will you sell us Bumper Hall Pen? Telegraph lowest cash price.
Facey replied: Lowest price for property $900
Harvey responsed: We agree to buy prperty for the sum of $900 asked by you.
Facey refused to proceed with the sale and Harvey sued for breach of contract.
Decision – Rejeted, Facey was merely supplying information as requested. There was no intention to make an offer. In fact, the only offer was made by Harvey.
Partridge v Crittenden
Facts – Partridge placed an advertisement:
“Bramblefinch cocks, bramblefinch hens, 25s each”
Partidge was charged with ‘offering’ a protected bird for sale contrary to the Protection of Birds Act 1954 (UK).
Decision – charge dismissed - his advertisement was not an offer, but an invitation to treat.
Harris v Nickerson
Facts – An auction, which had been advertised to be conducted on a particular day, was cancelled. Nickerson, had travelled a considerable distance to attend the auction, sued for damages for breach of contract.
Decision – There was no contract. Advertising an auction was not an offer, but a statement of present intention.
Routledge v Grant
Facts – Grant offered to buy Routledge’s house and said that he would keep the offer open for 6 weeks. Before the expiration of six weeks, Grant withdrew his offer. This caused Routledge some problems as he had bought another house believing that his would not be sold. Routledge sued Grant.
Decision - The court rejected Routledge’s case and held that an offeror was entitled to revoke an offer at any time before it was accepted.
Hyde v Wrench
Facts – Wrench offered to sell his property to Hyde for $1000. Hyde countered with an offer to buy for $950. This was not acceptable so Hyde offered the former amount of $1000. Wrench did not reply and subsequently refused to transfer the land to Hyde. At no stage had Wrench actually withdrawn his offer to sell for $1000.
Decision – The court held that Wrench was under no obligation to sell. His offer had been rejected by Hyde’s counter offer and an offer, once rejected, cannot be accepted.
