Formation of contract Flashcards
what is pre-contract
- negotiations about terms, parties have freedom to change terms or withdraw
what is post contract
terms are boxed, parties are bound to perform
can offers be revoked
- Offer can be revoked at any time before acceptance
- before acceptance there is no contract
why is communication key
- Communication creates a contract - offers and acceptances must be communicated
- No communication = no contract
what was confirmed in Routledge v Grant
if a person who makes an offer revokes it before it has been accepted, which he is at liberty to do, negotiation is at an end
what was confirmed in Thomson v James
simple unconditional offer can be recalled at any time before acceptance, but recall of an offer has no effect until the recall has been communicated, or may be assumed to have been communicated to the party holding the offer
what case confirmed that revocation of an offer isn’t effective until communicated to offeree
Byrne v Van Tienhoven
when must the communication of revocation be
must be in business hours (relevant to emails)
how can an offer be lapsed
through expiry of time
case of offer may lapse through expiry of time
Ramsgate Victoria Hotel v Montefoire 1866
what is acceptance
- Acceptance is final and unqualified expression of assent to terms of an offer
- It’s the acceptance of an offer that creates contractual relations
- Acceptance is the moment the contract is born
what are the methods of communication of acceptance (case examples)
- usually made in words but acceptance by deeds is possible - Carbolic Smokeball
- Thorton v Shoelane Parking - act of putting money in slot of ticket machine
case for silence doesn’t equal acceptance
Felthouse v Bindley
what are the two types of communication
- instantaneous
- postal
what is the postal acceptance rule rule and case
- When using the mail, acceptance is effective at the time of posting the acceptance
- Adams v Lindsell 1818
case of postal acceptance rule doesn’t apply to offers
Thomson v James
what is instantaneous communication
Contract takes effect the instant the acceptance is successfully communicated by the acceptor or offeror
case facts of Entores Ltd v Miles Far East Corpn
postal rule didn’t apply when mode of communication is instantaneous, as with face-to-face or phone communication
what was held in Baillie Estates Ltd v Du Pont UK Ltd
- Email perfectly valid way of communicating to create a contract
- So Binding Contract - but Du Pont’s T’s & C’s NOT part of contract because they came AFTER point in time the contract had been made.
