Forming of a Contract Flashcards
Where can the definition of a contract be found
Art. II.1:101
Where can the definition of when a contract is concluded be found?
Art II.4:101
What are the elements of a contract
–> Intention to enter into a binding legal relationship
–> reaching a sufficient agreement
–> Offer + acceptance
What are the elements of reaching a sufficient agreement?
–> sufficiently defined terms of the contract
–>etc etc
Where can the article on the offer by an offeror be found
-Art II. 4:201
Where can the article on acceptance by an offeree be found
Art II.4:204
Explain the elements of offer by offeree under the DCFR
-1.
(a)intended to become a contract once theother party accepts it
(b)contains sufficiently definite terms to form a contract
Explain acceptance by an offeree under the DCFR
-any form of statement or conduct
-which signals acceptance
List the case law on offers and acceptance
-Carlill v. Carholic Smoke Ball Co. (1893)
-Exploding lemonade bottle (1964)
Describe the facts of the Carlill v. Carbolic Smoke Ball ad
-Carbolic smoke ball company posts ad promising
-100 pounds to anyone who gets influenza despite using the
-carbolic smoke ball
-Mrs Carlill bought and used the ball but got influenza
-claims 100 pound
What was the question of law in the Carlill v. Carbolic Smoke Ball ad?
- Does the ad constitute a legally binding offer?
What was the judgment in the Carlill v. Carbolic Smoke Ball Co. case?
-The ad does constitute a legally binding order–> mrs carlill is entitled to 100 pounds
Explain the judgment in the Carlill v. Carbolic Smoke Ball Co. case
-Poster mentioned that the money had already been put in a specific bank
–> proving “our sincerity in the matter”
Explain the case law rules of the Carlill v. Carbolic Smoke Ball Co. case
-Was it a distinction to enter into a legally binding relationship? OR
-an offer to enter into negotiations
-to negotiate a price
Explain the facts of the exploding lemonade bottle case
-Mrs Dehen puts a bottel of lemonade in her basket and goes to checkout where an employee of a supermarket takes items out to count the bill
-Bottle bumps gently against a bottle of beer and explodes
-Mrs Dehen is struck in the eye by the bottle cap or by piece of glass
-Bottle of lemonade had been stored by supermarket in a hot place and was not inherently dangerous
What were the main questions of law in the exploding lemonade bottle case?
-Can Mrs Dehen sue the supermarket on the basis of contract or on the basis of tort?
-Whenb is there a contract between customer and supermarket?
-when customer places a product in their basket?
-When customer places a product on conveyer belt of cashier/teller?
-When customer pays?
What was the decision of the court in the exploding lemonade bottle case?
-Contract between customer and supermarket starts when customer places a product in their basket
Describe the facts of the Hannah Blumenthal case
-Contract with an arbitration clause
-Proceedings started in 1972 but only in 1980 the buyer proposed to fix a date for a hearing
-because delayed arbritatrion, seller uses this to prove contract has been abandoned
What was the question of law in the Hannah Blumenthal case
Is the seller right to say that the original contract was abandoned?
What was the judgment in the Hannah Blumenthal
Seller could not say that original contract was abandoned
Explain the judgment in the Hannah Blumenthal case
Seller could not say that original contract was abandoned
-Normal rules of contract law apply to contracts of abandonment
-should be consensus (meeting of minds/overlapping intentions)
-Intention of a party only counts if the communication of their intention could be reasonably understood by the other party
-Receiver could not have reasonably understood
-As not enough communication and behaviour + not reasonable assumption on seller’s part
Explain the facts of the Bank guarantee case
-Bank wrote to Steel Constructors (SC) that it would guarantee the debts of one of SC’s customers
-SC wants to make sure this happens
-Banks says that it had no subjective intention to perform a juristic act
What was the judgment of the BGH case?
-SC could rely on statement by Bank
-
Explain the judgment of the Bank Guarantee case
–SC could rely on statement by Bank
-declarations of intention not just up to the determination (self-determination) of the offerer but the recipient is also protected as well
-declaration of intention only exists when the declaror, if he had exercised the necessary discretion in social intercourse
-could have realised that his declaration or conduct could have been understood by the recipient as a declaration of intention
Explain the facts of the Shared Business trip case
-Mr. S drives Mr. D from France to Italy for a business trip
-They agree to share the cost
-Mr. S causes an accident
-Mr. D sues Mr. S for damages
-Did Mr. S commit a tort or a breach of contract
What was the decision in the Shared Business trip case?
-Can not been seen as a contract
-Intention to be legally bound is lacking
-Was not a serious offer and could not have been understood as such
What was the main question of the Shared business trip case?
-Was the agreement to share costs a contract?
What were the facts of the Betting syndicate case?
-5 people form a betting syndicate; each pays 10
-On one occasion X did not buy a ticket (if he would have done so he would have won 20,550)
-Others sue his ass
What was the main question of law in the Betting syndicate case?
- Was there contract which held X liable for the lost profits?
What was the judgment in the Betting Syndicate Case
- There was no contract for X to be held liable
Explain the judgment in the Betting Syndicate Case
“Contracts leading to onerous circumstances are considered null, even if an agreement has been implied
What are the possible outcomes after the offer is made under the DCFR?
- Revoked by the offeror (II-4:202) = offer cancelled, no offer
-Rejected by the offeree (II-4:203) –> invalid
-Accepted by the offeree (II-4:205)–> contract concluded
-Expired (II-4:206)–> offer lapses, invalid
-Unless II-4:207
-Modified by the offeree(II-4:208)–> new offer
