Questions

Question 1

Identify three elements of a binding contract

Answer 1

Offer and acceptance forming an agreement, intention to create legal relations and consideration

Question 2

What is a unilateral contract and how is it formed?

Answer 2

One which only one party is bound
Formed by a unilateral offer “offer to the word”
Case - Carlill V Carbolic Smoke Ball Co (1893) or other reward cases.

Accepted by performance of the act stipulated by promisor

Question 3

Explain the exception to the rule that past consideration is not good consideration

Answer 3

It may be good consideration when:
The act of promise is done or given at the request of the promisor
Both parties understood payment would be made
And
Payment would have been legally recoverable had it been promised in advance
Case lampleigh V braithwaite

Question 4

Identify presumption on intention to create legal relations in social agreements and one way in which presumption can be rebutted

Answer 4

Presumption that parties do not intend to create legal relations - Jones V padavatton

May be rebutted where parties are separating or separated - Merritt v Merritt

Or where there is mutuality in arrangements such as intention to share benefits or one party at disadvantage- Simpson’s v pays

Question 5

Identify Three ways in which written Terms (in particular exclusion clauses) may be incorporated into a contract

Answer 5

By signature
by reasonable notice
by course of dealings
By common understanding

Question 6

Define a innominate term and explain the remedies which may be available for breach of it

Answer 6

A term which cannot be classified at the time of formation of a contract as a condition or a warranty.
A party can claim damages for any breach of inanimate term but can terminate for breach only if the breach is sufficiently serious
Case - The Hong Kong fir

Question 7

Identify two bars to rescission of a contract for misrepresentation

Answer 7

Recision of a contract for misrepresentation may be barred(lost):
By affirmation
by lapse of time
wHere substantial restoration of the parties to the precontract opposition is impossible
where rights in the subject matter of the contract up an acquired by an innocent third-party

Question 8

Identified two exceptions to the entire performance role from cutter v Powell

Answer 8

Part performance -
Prevented performance -
Substantial performance

Question 9

State the rule of remoteness of damages in Hadley V Baxendale

Answer 9

A loss which is not too remote is recoverable. The rule in Hadley v Baxendale provided that a loss is not too remote if it arises naturally from breach or is in the reasonable contemplation of the parties at the time the contract is made as the probable result of the breach

Question 10

Explain what is meant by a non-pecuniary loss and give an example

Answer 10

Is a loss which does not compensate for financial or maternal loss and cannot be calculate precisely
Examples include loss of amenity such as loss of enjoyment or distress
Case Jarvis V Swans tours

Question 11

Define an offer

Answer 11

Is a willingness to contract on certain terms, with the intention that it shall become binding upon acceptance

Question 12

What features of a quotation could be shown to be an offer

Answer 12

• willing to sell
• Intends to enter a contract
• terms of selling are sufficiently certain as to price l, nature of goods and date of delivery

Question 13

Can silence (if I don’t hear back from you) be considered an offer

Answer 13

For a contract to exist, acceptance of an offer must be communicated.
Case - felthouse v bindley, offeror cannot great silence as acceptance of the offer

Question 14

Battle of forms

Answer 14

It occurs when successive offers and counter-offers are made which include standard terms and conditions.
Contract concluded on standard terms of the LAST counter offer
Case butler machine tool co C ex-cell-o corporation

Question 15

Define a frustrated contract

Answer 15

Frustration may be defined as an event occurring after the formation of the contract which is the fault of neither party and which renders the contract impossible or illegal to perform or undermines it’s commercial purposes
Case - King Coronation booked a room specifically

Question 16

Concept of a contract

Answer 16

A contract is an agreement that gives rise to obligation which can be enforced or recognised by law

Question 17

Explain privity of contract

Answer 17

Privity of contract is the doctrine that one person who is not a party to a contract need enforce rights under the contract, No be subject to the obligations under the contract only parties to the contract can sue or be sued on it.
Tweedle v Atkinson

Question 18

Exception to traditional common law position RE: privity of contract

Answer 18

Jackson V Horizon Holidays Ltd established an exception under Contracts (Right of Third Parties) Act 1999

Question 19

Criteria of an offer

Answer 19

Must be certain
Can be unilateral or bilateral
Can be made orally or in writing or by conduct
Must be communicated to the offeree who must have knowledge of it (Taylor v Laird)
Can be made to one person or a group or the world
Must be distinguished from an invitation to treat

Question 20

Explain an invitation to treat

Answer 20

An invitation to treat is nearly an invitation to the other party to make an offer or to negotiate.

Unlike an offer an invitation to treat give rise to a new legal obligations

Case - Gibson V Manchester City Council

Question 21

What is the unilateral contract

Answer 21

A unilateral contract is a contract which only one party is bound. It is formed by unilateral offer which may be made an offer to the world as in Carlil V Carbolic Smoke Ball.

It is normally accepted by performance of the act stipulated by the promisor

Question 22

Examples of an invitation to treat

Answer 22

Advertisement like Partridge v Crittenden
Auctions
Request for tenders
Good on displays in shops
Mere statements of price

Question 23

4 ways to end an offer and explain them

Answer 23

Revocation - must be communicated (Byrne V Van Tienhoven)
Lapse of time - a “reasonable time”
Rejection (included counter offer) Hyde V Wrench
Acceptance
1. Orally writing or by conduct
2. Correspond with terms of offer
3. Communicated in the right way and by right person

Question 24

What is consideration

Answer 24

Consideration is the idea that both parties to a contract must provide something of value to the agreement. It is the price paid for a promise.
Dunlop pneumatic tyre V selfridge Co ltd

Question 25

Consideration process

Answer 25

May be executed (perform at time or entering contract) or executory (Perron in future).
Must move from promise
Must not be past

Question 26

Adequacy of consideration

Answer 26

Relates to the amount or value of consideration provided in exchange of a promise.
It does not need to be equal value for which is given in exchange
Chappell v nestle

Question 27

Consideration need not be adequate

Answer 27

Consideration need not be adequate this means that the consideration for a promise does not need to be of equal value to that for which it is given in exchange

chapel v nestle

Question 28

Consideration must Be sufficient

Answer 28

Consideration must be sufficient of the type recognised by the law the case for this is Thomas v Thomas

Question 29

What is the doctrine of implied assumpsit

Answer 29

An exception to the rule that consideration must not be passed. It applies where there is a legitimate and reasonable expectation that payment will be made even if it occurs after the contract has been formed
Lampleigh V Braithwait

Question 30

Insufficient consideration

Answer 30

• an existing public duty - exception is glasbrook bros v Glamorgan cc
• existing contractual duty - stilk v myrick
• existing duty to repay debt - exception pinnels case

Question 31

3 reasons for a commercial or business agreement being rebuffed

Answer 31

agreement being rebutted:
Mere puffs
Honourable pledge clause
Letter of comfort

Question 32

3 different statements in a contract

Answer 32

Mere puffs (an extravagant claim not intended to be binding)

Representations - pre contractual statements intended to persuade the other party to enter into the contract

Terms - statements incorporated into the contract