Outcome 1 Flashcards
Revocation of offer (taking back offer)
•may be expressed or implied
•express - when offeror communicates to offere that offer is withdrawn
•implied - there is counter offer
-either party becomes insane before acceptance
-offer not accepted within a reasonable time
What is a counter offer with a case study
•Counter offer is a qualified acceptance i.e. it contains new conditions and changed nature of offer
•counter offer kills the original offer
e.g. wolf and wolf V Forfar potatoes Scottish company telexed Dutch company to sell a quantity of potatoes Dutch company telexed back with a counter offer which was rejected.dutch co telexed back to excepted original offer, forfar didn’t accept .Dutch sued for breach of contract unsuccessful as a offer lapsed when wolf rejected
What is acceptance with Case study
-Acceptance must be within a reasonable time
-reasonable time as a matter of fact in each particular case
-goods that are perishable or fluctuating value accept and should be immediate
Eg
Wylie and lochhead v McElroy and son
There had been no acceptance within a reasonable time the offer had been implied withdrawn and no contract formed iron fitting after 5 weeks responded
What is acceptance
- acceptance is a final unqualified assent to an offer
- contract formed when offer accepted
- acceptance is only effective when communicated
- silence is no acceptance
What is contrast between invitation to treat and offer use case study to explain
Philip & co v knob lach
Defender obligated the pursuer to request information by sending lowest price for bumper hall pen £900. Pursuer thought definite offer and sent acceptance. Defender did not respond acceptance.
-first telegraphy was a mere invitation to treat and not a definite offer. In other words if persuer wished to be regarded serious contender he would of offer higher than 900
What is an invitation to treat
Is a mere indication of a willingNess to negotiate further not an offer
An invocation to treat can’t be accepted
What is the law for people aged between 16 and 18
People aged between 16 and 18 are deemed to have full contractual capacity unless they enter into a contract which is a prejudicial transaction:
An adult having a reasonable prudent would not have entered into into in the circumstance of the applicant at the time of entering into the transaction and has caused or is likely to consubstantial prejudice to the applicant
What is the rule of contractual capacity
The age of legal capacity Scotland act 1991 makes sure that people under 16 have no capacity to enter into transactions except where the:
- transaction is one which is of a kind commonly entered into by a person that age and circumstance the
- terms of the transaction or reasonable contract is void unless these conditions are met
What is the law for mental capacity
Insane people do not have capacity to enter into contracts
- the law will intervene to make contracts entered into by those certified is insane to make avoid
- law no deals with situation under the adult with incapacity Scotland act 2000 which appointed guardians who will intervene on behalf of the incapable person
Why want quarts in force certainty of Thames give Case study
Courts will not enforce a contract in which the terms are uncertain or vague
MacArthur and Lawson 1877
Lawson employee of McCarther, MacArthur agreed at start of business relationship after 2 years he would give Lawson a substantial interest by way of partnership Lawson sued him as he didn’t follow obligation courts didn’t enforce as substantial interest is too vague
What is the consequence of someone breaches a contract
Sued in the court for damages the injured party seeks a remedy for the wrong done
What is freedom of contract
Everyone has the power to choose whether or not to enter a contract
- and to decide on the terms upon which the contract is made
- contract have to be voluntary by your own free will or it would be valid
What is sanctity of contract
This is binding on you the contract if you enter the contract in your fee will
-if people want to enter our dad bargain your fault court want Bill you at -Scotts courts and English courts willing to interfere because bargaining powers of parties are often unequal
What are essential elements of a contract
Agreement
- must be to contracting parties
- intention to create legal relations we know we are going into something legally binding
What is agreement
Must be consensus in idem- a meeting of the minds on all aspects we agree on all things nothing is left to chance
Raffles v wichelhause 1864
Contract made to ship goods on peerless but there were two ships with same name departing on different dates parties referring to a different ship goods not ship no breach of contract due to the consensus in idem
