intro to law 2 Flashcards
what are the sources of contract law
case law
legislation
define contract
agreement giving rise to obligation which are enforced or recognisable by law
what are the two principle when identifying a contract
is there an agreement
is it legally binding
define subjective
what meaning a party actually intended to convey by his words or conduct
define objective
what meaning a reasonable person in other parts position would have understood him to be conveying
what are the elements of a legally binding contract
agreement consideration intention to create legal relations compliance with required formalities where necessary capacity to contract
define offer
clear ststamene too terms which the offeror is prepared to do business with the offer
what are the types of offer and explain
bilateral - consists two promises
unilateral - consists of one promise
what makes an offer legally binding
clear
communicated
NOT statement of intent, supply of information, invitation to treat, or mere puff
explain guthing v Lynn 1831
buyer of a horse promised to pay seller and extra 5£ if horse if lucky for me - promise to pay extra fiver was too vague
offer wasn’t clear
explain hills v across 1932
contract to supply wood for one year had option permitting buyer to buy additional wood following year. option not specify type or quality - valid offer, details obtained from previous dealing and custom and practice in trade
offer must be clear
explain bloom v American Swiss watch co 1915
claimant gave information concerning jewel theif didn’t know at time reward, discovered after and tried to claim it - defendant legally obliged to pay claimant reward monies as no contract existed between partied to do so
what is an offer not
a statement expressing information
statement supplying information
an invitation to treat
mere puff or boast
explain re ficus 1900
a father informed future son in law daughter would inherit land under will - fathers words simply intention at time, not an offer so not bound by it
statement of intent
explain Harvery v Facey 1893
claimant asked defendant state lowest price would sell bumper hall pen for he said 900. claimant accepted + sued for breach of contract when defendant refused to sell - no contract had been formed defendants reply was offer but statement of minimum price
statement supplying information
define invitation to treat
not an offer that is capable of being accepted by other party
is an invitation to negotiate or pre offer
explain Gibson v Manchester City council 1979
city council adopted policy of selling council house to tenants. claiment requestsd details and received letter back stating council prepared to sell house complete form claimant applied before response local elections reversed policy and refused to sell - council not an offer invitation to treat
name key examples of invitation to treat
display of goods in shop window display of goods in self service shelves tenders auctions advertisements share prospectus menus
explain fisher v bell
flick knife display shop window charged restrictions of offensive weapons - not an offer for sale, invitation to treat
explain pharmaceutical society of Great Britain v boots cash chemists southern ltd 1953
boots introduced self service system customers put items in basket and pay at cash desk. prosecuted pharmacy and potions act as offence to sell drugs without presence of pharmacist - no offence committed customer made offer when handing over goods at cash desk where pharmacist was
what is a tender
w/ example
person seeking to have work carried out issue a statement inviting interest parties to submit terms which they are willing to carry out work
example Spencer v harding 1870
explain Blackpool & flayed aero flying club ltd v Blackpool borough council 1990
claimant and six other parties invited by defendant council to tender for concession to provide pleasure flights. Due to an oversight by council claimants tender overlooked even though submitted on time - tenders sought from specific parties and absolute conditions governing submission
examples of invitation to treat
auctions advertis window display self service display tenders share prospectus, catalogue
explain partied v crittenden 1968
mr partridge place advertisement magazine for wild birds sale, charged with unlawfully offering sale for a wild live bird - no offence committed advertisement was invitation to treat not offer for sale
what is the exception for advertisements
carlill v carbolic smoke ball company 1893
how can an offer be terminated
revocation or withdraws of the offer
lapse of time
death
rejection and counter offer
explain Rutledge v grant 1828
defendant offered to buy claimants house and gave 6 weeks to accept offer, defendant withdrew before expiration - defendant entitled to withdraw any time up until acceptance
explain Byrne v van tienhoven 1880
defendant wrote to claimants offering sell tinplates, then posted letter revoking offer but before tis was received accepted - so withdraws only effective when received so binding
explain Dickinson v Dodds 1880
defendant ordered sell his house to claimant before acceptance informed reliable third party defendant sold house to someone else - offer withdraw any time before acceptance
explain errington v errington and woods 1952
father bought a house with mortgage for son and daughter in law to live in, paid deposit and son paid mortgage father promised house would belong to couple as soon as paid off mortgage. father died widow claimed - father promise in return for instalments unilateral contract
explain Ramsgate Victoria hotel v monte fire 1866
defendant offered to buy shares in claimant company, in June attempted to accept in November. - unreasonable delay acceptance of offer so terminated through lapse of time
explain Hyde v wrench 1840
defendant offered to sell farm to claimant for 1000, claimant replied 950 defendant refused claimant tried to claim 1000 deal. heard nothing - no contract original offer no longer existed
explain Stevenson v clean 1880
defendant offered iron at certain price claimant asked about delivery and payment in instalments claimant received no reply and accepted doffer but defendant sold it - defendant in brach of contrcact as claimants question request for info not destroy original offer
what is acceptance
a final and unqualified expression of assent to terms of the offer
what makes an acceptance legally binding
mirror image of offer
unconditional
communicated to offeror
what is battle of the forms B
businesses often contract with other parties using pre printed forms - so this is the new form sent out each time with amended changes etc
each standard form is treat as a counter offer and the last form to be sent out is the offer
explain butler machine tool ltd v ex cell o corp ltd 1979
claimant sent out standard form contract to defendant offering to sell tools for name price, stating price could fluctuate defendant sent back order fixed price price claimant agreed and later tried to charge higher price - defendants order was a counter offer which claimant accepted
exceptions to the rule that acceptance must be communicated
unilateral contracts
contracts where postal rules apply
what is the postal rule
acceptance by post effective when letter posted and not when received
explain Adams v lindsell 1818
defendant posted offer to sell wool to claimant t seeking reply via post, letter arrived two days late because wrongly addressed. defendant had already sold wool to third party as delay - defendant in brach as claimants acceptance was affective when posted
explain household fire and carriage accident insurance company ltd v grant 1879
defendant applied for shares in company. posted letter of acceptance allowing shares to him but letter never arrived company went into liquidation - defendant still had to pay for hares
explain Howell securities v Hughes 1974
defendant granted claimant option to purchase land offer had to be accepted by giving notice in writing, claimant wrote to defendant to accept offer, letter never arrived. - postal rule didn’t apply offer made clear acceptance had to be received
explain Powell v lee 1908
claimant applied post headmaster, one manager from board told him he was successful he had no right to say this and later someone else got position. claimant sued for breach of contract - no contract as communication of acceptance not by an authorised agent
explain felt house v bindle 1862
claimant negotiations for horse stated £30 15s, ended saying if I hear no more then consider him mine for that much nephew didn’t reply but told auctioneer that don’t auction accidentally did to third party - no contract no communication of acceptance
how can acceptance be communicated
verbal communication
by conduct of the offeree
by fall of hammer at auction
in writing
explain entries v miles Far East corporation 1955
acceptance by telecom should be treated like acceptance by telephone instantaneous and effective on being received
brogden v metropolitan railway co 1977
mr brogden supplier railway company with coal no contract. company drafted contract and mr brogden sent back altered and they proceeded to supply coal - draft contract counter offer terms accepted by conduct of company continuing to order
what is the doctrine of consideration
essence of doctrine that a promisee can’t enforce a promise unless he has given or promised to do something in exchange ge
- bargain between parties
- price of the promise
what is executory vs executed consideration
executory - promise to do something in the future
executed - promise which has been performed
what are the key principles of consideration
past consideration isn’t good consideration
must be providing by promisee
need not be adequate value
must be sufficient
explain roscorla v Thomas 1842
bought a horse from Thomas for 30£ after sale Thomas gave roscorla a warranty sound and free from vice horse turned to be vicious - promise came after sale and so not enforceable