O/A Flashcards
What is the first principle to show the existence of a binding agreement?
that there must be consensus ad idem
What are the two cases which explore whether parties must have consensus de idem?
Raffles and
Byrne
What happened int eh case of Raffles
Consensus de idem
ralf would have made this mistake
The claimant believed that he contracted for the sale of cotton on the December ship Peerless, whereas the defendant believed they contracted for the October Peerless.
HELD:
If the court could find a common intention, the contract will be upheld but the court here could not determine which Peerless ship was intended in the contract. Mutual mistake was therefore operative and the contract was void
The claimant believed that he contracted for the sale of cotton on the December ship Peerless, whereas the defendant believed they contracted for the October Peerless.
HELD:
If the court could find a common intention, the contract will be upheld but the court here could not determine which Peerless ship was intended in the contract. Mutual mistake was therefore operative and the contract was void
What happened int eh case of Raffles
Consensus de idem
What happened in the case of Byrne
Consensus Ad Idem?
A letter was sent to Byrne offering to sell tinplates. Days later the offers changed their minds but this was not delivered to Byrne until after Byrne accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
A letter was sent to X offering to sell tinplates. Days later the offers changed their minds but this was not delivered to X until after X accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
What happened in the case of Byrne
Consensus Ad Idem?
Why was the case of Byrne decided the way it was despite the fact that the offeror wanted to revoke offer?
as consensus ad idem does Consensus ad idem does not refer to subjective intention and thus courts are not interested into the partiesthoughts; rather whether the reasonable man would say that the parties were in agreement.
What did the case of Gibson establish?
that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
What happened in the case of Gibson?
relating to that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
Having adopted a policy of selling houses the respondent applied to which the council stated it may be prepared to sell. before exchange of contracts there was a change in the control of council
HELD:
No specific performance as the invitation to treat was not a formal application to buy
Having adopted a policy of selling houses the respondent applied to which the council stated it may be prepared to sell. before exchange of contracts there was a change in the control of council
HELD:
No specific performance as the invitation to treat was not a formal application to buy
What happened in the case of Gibson?
relating to that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
How did Treitel describe an offer?
as an expression of willingness to contract on specified terms which is to become binding as soon as it is accepted by the addressed person
What case was the criteria of an offer considered in?
Carlil v Carbolic Smoke Ball
In this case the appellant company designed smoke balls designed to prevent the flu and offered a £100 award to anyone who did contract flu after using it as instructed. The advertisement stated that £1,000 had been deposited into a named bank. In reliance of this the respondent purchased the smoke ball but
contracted flu anyways
HELD:
It was a valid offer which could be accepted by performing the recommended conduct
Carlil v Carbolic Smoke Ball
Carlil v Carbolic Smoke Ball
Discuss
In this case the appellant company designed smoke balls designed to prevent the flu and offered a £100 award to anyone who did contract flu after using it as instructed. The advertisement stated that £1,000 had been deposited into a named bank. In reliance of this the respondent purchased the smoke ball but contracted flu anyways
HELD:
It was a valid offer which could be accepted by performing the recommended conduct
Carlil v Carbolic Smoke Ball is also an example of a unilateral offer. What is a unilateral offer?
this is where the majority of the contractual obligation is placed upon the offerer
What case establishes that revokation is impossible once performance has begun?
Errington v Errington
Errington v Erringtonestablishes that revokation is impossible once performance has begun
discuss
A father promised that he would transfer the legal title to the property to his son and daughter if they paid off all mortgage payments. The father died after some repayments. Other family members tried to claim possession of the house.
HELD:
The contract was a unilateral offer since it involved an act in return for a promise. Once performance commenced the father’s promise could not be revoked but the promise would not be binding, per Lord Denning, if the act was left incomplete and unperformed
How does Ashby note that revocation should be communicated.?
it must be done in the same/similar method
Ashby notes that revocation should be communicated by the same or similar method
Shuey supports this
discuss
where the offer of a reward was made by public proclamaiton, it may be withdrawn through the same channel. The party must take the steps which a reasonable man would take.
where the offer of a reward was made by public proclamaiton, it may be withdrawn through the same channel. The party must take the steps which a reasonable man would take.
Shuey
Under bilateral contracts; who distinguishes an offer from an invitation to treat:
an offer is a pre-contractual definite promise where
as invitation to treat is a pre-contractual statement not intended to lead to acceptance but higher levels of negotiation?
Poole
What are the 7 examples of an invitation to treat?
1) Advertisements, price lists
2) shop displays, show windows
3) websites
4) tenders
5) sale of land
6) auctions
7) letters of intent
What is the supporting authority for advertisements?
Partridge v Crittenden
he supporting authority for advertisements is Partridge v Crittendon
discuss
partridge in a pear tree
The defendant placed an advertisement in a magazine. He was prosecuted under the Protection of Birds Act for offering for sale wild birds
HELD:
The court held that the advertisement was an invitation to treat and not an offer; it was an expression of willingness to receive offers as a stating point to negotiations
The defendant placed an advertisement in a magazine. He was prosecuted under the Protection of Birds Act for offering for sale wild birds
HELD:
The court held that the advertisement was an invitation to treat and not an offer; it was an expression of willingness to receive offers as a stating point to negotiations
he supporting authority for advertisements is Partridge v Crittendon
discuss
What are the 2 exceptions to the rule that advertisements are not an offer but an invitation to treat?
1) if a reward is advertised for the performance of a specific act the advertisement will constitute a unilateral contract
- Carlil v Carbolic Smoke Ball
2) on the basis of certainty of terms such as ‘highest bid gets it’ or ‘first come first served’
- Leftowitz
There are 2 exceptions to the rule that advertisements are not an offer but an invitation to treat?
2) There is potential to convert an invitation to treat on the basis of certainty of terms such as ‘highest bid gets it’ ‘first come first served’
-Leftowitz
discuss
the defendant refused to sell to the first to arrive to his first come first served advertisements as the house rule was that it could only ve sold to women
Could not do so due to specific language used
the defendant refused to sell to the first to arrive to his first come first served advertisements as the house rule was that it could only ve sold to women
Could not do sodue to specific language used
Leftowitz
What are the two supporting authorities that shop displays/windows are an invitation to treat?
- Fisher v Bell
- Pharamceutical Society v Boots
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the first
Shopkeeper was prosecuted for displaying a flick knife for sale but it was found this was actually only an invitation to treat
Shopkeeper was prosecuted for displaying a flick knife for sale but it was found this was actually only an invitation to treat
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the first
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the second
Defendants were prosecuted on the basis of their self service counters under the Poisions Act. However it was held that the contract was only formed when goods were presented at the cash desk and whilst on the shelf they were merely an invitation to treat
Defendants were prosecuted on the basis of their self service counters under the Poisions Act. However it was held that the contract was only formed when goods were presented at the cash desk and whilst on the shelf they were merely an invitation to treat
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the second
Why have websites been found to be a invitation to treat?
It is customers who make the offer, thus allowing the site provider to retain freedom of contract and allow it to avoid entering contracts with online buyers in excluded jurisdictions
How does the oxford dictionary define a tender?
as an offer to carry out work, supply goods or buy land, shares or another asset at a stated fixed price
What is the supporting authority for tenders being an invitation to treat
Spencer v Harding
the supporting authority for tenders being an invitation to treat is Spencer v Harding
Discuss
Spencer that is a hard sale
Spencer v Harding
The defendants advertised a sale by tender, advertising where the sale of goods could be viewed but no reserve was stated. The claimant submitted the highest tender but the defendant refused to sell him
HELD:
No obligation to sell as the advertisement amounted to an invitation to treat
The defendants advertised a sale by tender, advertising where the sale of goods could be viewed but no reserve was stated. The claimant submitted the highest tender but the defendant refused to sell him
HELD:
No obligation to sell as the advertisement amounted to an invitation to treat
the supporting authority for tenders being an invitation to treat is Spencer v Harding
Discuss
Spencer that is a hard sale
What are the 2 exceptions to the fact that tenders are an invitation to treat?
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
the 2 exceptions to the fact that tenders are an invitation to treat
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
discuss the first
In this case it was held that referential bids are invalid in a fixed bidding sale
£100,000 in excess
the 2 exceptions to the fact that tenders are an invitation to treat
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
discuss the second
The tender invitation had a clause stating they would not be accepted if they missed the time and date deadline stipulated. The claimant’s tender was not conceded even though it was posted at 11am but council staff failed to clear it by 12pm.
HELD:
Courts found that the invitation to submit a tender was usually no more than an offer to recieve bids, but in the circumstance, examining the behaviour of the parties created clear intention to create a contract