Formation Of Contract Flashcards by Talia Berry

Whats a unilateral contract

Only one of the two parties has an obligation to fulfil

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Whats a bilateral contract

Both parties have an obligation to fulfil

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What is an offer

A statement of terms upon which the person making the offer is willing to enter the contract

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Whats an offeree

Person who the offer is made to

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Whos the offeror

Person who makes the offer

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The words of the offer must be certaib

Words and phrases such as might be prepared to or may be able to are uncertain
If words are uncertain this is not an offer

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What is the case for words must be certain

Gibson v MCC

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Who can make an offer

Anyone including individuals, businesses, notice or machine

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What is the case for offer made by machine

Thornton v Shoe Lane Parking

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How long does an offer last

Offers can only be accepted whilst open
Offer is open once communicated by the offeror
In some contracts time the offer is open will be specified if not courts decide

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Whats the case for how long an offer lasts

Taylor v Laird

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What is the case for courts looking at the timing on a case by case basis

Stevenson v McLean

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An offer or invitation to treat

Offers can be accepted
ITT cannot be accepted
ITT is an indication that the person is willing to negotiate a contract
ITT inviting people to make you an offer

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Adverts

ITT

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Case for adverts

Partridge v Crittenden

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Adverts can be an offer if

The words clearly state an offer is being made

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What is the case for when an advert was an offer

Carlill v Carbolic Smokeball Co

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Shop window displays/ shop shelfs

ITT- sellers are not obliged to sell items
- alcohol
- medication

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What is the case for shop window displays

Fisher v Bell

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Auctions

ITT

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Whats the case for auctions

BCA v Wright

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Request for further information

not an offer this is an enquiry

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Whats the case for request for further info

Harvey V Facey

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How can an offer end

Revocation - withdraw at any time before acceptance (Dickinson v Dodds)
Rejection- if offer is rejected it will end (Stevenson v McLean)
Lapse of time- if the offer has a time limit
Death

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Acceptance

Confirms that the terms of the offer are agreed Once an offer is accepted there is a binding contract although there has to be consideration and itclr

Acceptance must be

Positive, unqualified Communicated to the offeror Yes but yes if is not acceptance

How is an offer accepted

Any form Not silence Offeror must be aware for it to be valid

Whats the case for silence is not acceptance

Felthouse v Bindley

Case for you can specify how communication is to be communicated

Yates v Pulleyn

What are mandatory instructions

Instructions the court decide are non negotiable If these are not followed Theres no contract

What are directory instructions

Instructions the court decide are not fundamental If these are not followed there can still be a valid contract

When does acceptance take place

When communicated to the offeror

Acceptance by conduct

Valid acceptance

Whats the case for acceptance by conduct

Carlill v Carbolic Smokeball Co

Acceptance by post

Postal rules are followed Only apply to letters of acceptance

What case was the postal rules established

Adams v Lindsell

What are the postal rules

1. Post must be the usual/ expected means of communication 2. Letter must be properly addressed and stamped 3. Offeree must be able to prove that the letter has been posted

Electronic methods of communication

When the offeror is aware During office hours

Case for electronic methods of communication

Thomas v BPE solicitors

Consideration

Means that both parties must give something

What case defined consideration

Currie v Misa ‘Some right, interest, profit or benefit’ which is given to one party

Consideration must be sufficient not adequate

Ensure both parties exchanged something of value Consideration must be real Courts will not intervene if one party made a bad bargain

Case for consideration must be sufficient not adequate

Chappel v Nestlé

Past consideration

Not valid consideration No value if it occurred before the agreement

Case for past consideration

Re McArdle

Exceptions under past consideration

Implied promise Important matter

Case for implied promise

Re Caseys Patent

Case for important

Lampleigh v Braithwaite

Performing a pre existing duty

Not valid consideration

Case for pre existing duty

Stilk v Myrick

What are the exceptions for pre existing duty

Extra element Other party avoids detriment

Case for extra element

Hartley v Ponsonby

Case for extra element

Williams v Roffey

Intention to create legal relations

Can be express or implied

Presumption in business agreements

There is ITCLR

Rebuttal in business agreements

No ITCLR

Presumption in social agreements

No ITCLR

Rebuttal in social agreements

ITCLR

Business or social agreement?

Where it is unclear the burden of proof lies with the claimant to prove ITCLR

Business agreements

Presumed to be legally binding Can be rebutted

Binding in honour only

Not contractually enforceable

Case for binding in honour

Jones v Vernons Pools

Free gift/ prize

Can be legally binding

Case for free prize

McGowan v Radio Buxton

Letter of comfort

Not usually legally binding

Case for letter of comfort

Kleinwort Benson Ltd v MMC

Social agreements

Presumed to be non legally binding Can be rebutted

Cases for spouses

Balfour v Balfour- still married no ITCLR Merritt v Merritt- seperated ITCLR

Family agreements

Court has to assess whether this is social or one with legal intent

Case for family agreements

Jones v Padvatton

Lottery syndicates

Money paid likely to be a business

Case for lottery syndicates

Simpkins v Pays

Financial security at risk

Put own financial security at risk must have intended to be legally binding

Case for financial security

Parker v Clarke

Privity of contract original rule

Only those party to a contract are bound by it and can benefit

What case was the concept of privitit set out in

Dunlop v Selfridge

Exceptions to rule of privity

Collateral contract Agency Restrictive covenants Statutory exceptions

What are collateral contracts

Agreement which runs alongside main agreement

Case for collateral contracts

Shanklin Pier v Detel

Agency

Agent permitted to make a contract om behalf of another

Restrictive covenant

Seller and purchaser can form an agreement regarding what can be done on land

Case for restrictive covenant

Tulk v Moxhay

Statutory exceptions

CRPTA 1999 modified rule of privity Allows a third party to sue if Contract states third party has rights S1(1)(a) Attempt to confer a benefit to third party s1(1)(b) Act wont apply if it appears parties did not intend 3rd contract to have rights 3rd party must be expressly identified