Q10 Flashcards
Contract Definition
A contract is an agreement between two parties that is legally binding.
Bilateral Contract
A bilateral contract is an exchange of promises between two parties.
Offer Definition
An offer is an expression of willingness to contract on certain terms, with the intention that it will become binding upon acceptance.
Certainty of Offer
An offer must be certain and have no ambiguity (Storer v MCC).
Acceptance Definition
Acceptance is an unequivocal expression of intention and agreement to the terms of an offer, communicated to the offeror.
Rule 1 of Acceptance
Acceptance must be in response to an offer (motive doesn’t matter).
Williams v carwardine
Rule 2 of Acceptance
Acceptance must be unequivocal (mirror image rule: offer must match acceptance).
Rule 3 of Acceptance
Acceptance must be communicated to the offeror (Entores v Miles Far East).
Postal Rule
Only exception to acceptance
Acceptance is valid once the letter is posted, not when received (Adams v Lindsell).
Revocation of Offer
An offer can be revoked (cancelled) any time before acceptance (Dickinson v Dodds).
Privity of Contract Definition
Contracts are generally only enforceable by the parties involved (Dunlop v Selfridges).
Exception to Privity Rule
If a contract bestows a benefit onto a third party, it may sometimes be enforceable.
Termination of a Contract
The act of ending a contract. Acronym: CARDS
Consumer Rights Act (CRA) - S9
Goods must be of satisfactory quality (not faulty/damaged), judged by a reasonable person (considering description, price, etc.).
Consumer Rights Act (CRA) - S10
Goods must be fit for purpose (the consumer must clearly state the intended use).
Exclusion Clauses Definition
A clause that seeks to exclude liability for one party in the event of a contractual breach.
Enforceability of Exclusion Clauses
- Must be incorporated into the contract. 2. Must be interpreted by the courts to be enforceable.
CRA S11
Goods as described, must match any description
