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Contract Law > Rules of Law > Flashcards

Rules of Law Flashcards

1
Q

Communication of an offer

A

An offer must be communicated to the offeree before it can be accepted

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2
Q

Payne v Cave

A

An offer can be revoked at any point before acceptance

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3
Q

Errington v Errington and Woods

A

An offer cannot be revoked once the offeree has started to perform the requested act

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4
Q

PSGB v Boots

A

Goods on a supermarket shelf are invitations to treat

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5
Q

Fisher v Bell

A

Items placed in a shop window are invitations to treat

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6
Q

The customer…

A

The customer always makes the offer

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7
Q

Esso Petroleum v Customs and Excise

A

Business and commercial cases are presumed to be binding

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8
Q

Harvey v Facey and Grainger and Son v Gough

A

A mere statement of price is not an offer capable of acceptance nor a promise

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9
Q

Gibson v Mancherster City Council

A

Letters or adverts asking for tenants are invitations to treat

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10
Q

R v Clarke and William v Cawardine

A

In order for a reward to be given to the offeree, they must have knowledge of it and act in reliance of it

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11
Q

Shuey v USA

A

The same notoriety must be given to the revocation that was given to the offer

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12
Q

Thornton v Shoelane Parking

A

The contract becomes binding when the money is put in the machine

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13
Q

Wilkie v London Passenger Transport Board

A

The contract is made when the intending passenger puts himself either on the platform or on the bus

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14
Q

Dickenson v Dodds

A

The revocation need not be communicated by the offeror himself

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15
Q

Felthouse v Bindley

A

Silence does not amount to acceptance

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16
Q

Denning in Entores

A

Not only must the words of acceptance be spoken, they must also be heard by the offeror

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17
Q

Hyde v Wrench

A

A counter offer revokes the original offer

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18
Q

Balfour v Balfour

A

Social and domestic cases are presumed not to be binding

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19
Q

Pinnels/Foakes

A

Part payment of a debt does not satisfy the whole debt

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20
Q

Equity..

A

Equity overrules the common law

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21
Q

Stilk v Myrick

A

Performance of an existing duty owed to a third party can be good consideration

22
Q

Tweddle v Atkinson

A

Consideration must move from the promisee

23
Q

The doctrine of privity is…

A

An immovable, rigid and strict rule which is fundamental to contract law. Its impact can be harsh.

No one who is not a party to a contract can have rights or obligations under it

24
Q

Contracts (Rights of Third Parties) Act 1999 S1(1)

Beswick v Beswick

A

A person who is not a party to a contract may in his own right enforce a contract term if the contract expressly provides that he may or the term purports to confer a benefit on him

25
Q

Taddy v Sterious

A

The Restrictive Covenant cannot apply to contract law

26
Q

Scruttons Ltd v Midland Silicones Ltd

A

A party can contract to include an exclusion clause or a limitation clause in a contract which can reduce or relieve the extent of liability on the case of breach. However there is no protection to subcontractions

27
Q

S2 (2) Unfair Contract Terms Act 1977

A

A person cannot by virtue of a contractual term or notice exclude or limit their liability for negligence on death or personal injury

28
Q

What the courts adopt in restraint of trade agreements

A

The courts adopt the presumption that contract in restraint of trade are prima facie void as the courts are reluctant to endorse an agreement whereby one party gives up his right to his livelihood as a requirement to the stronger party to the contract and judges are reluctant to see the public deprived of that party’s skill or expertise

29
Q

Carlill v Carbolic Smokeball Co. Ltd

A

The party who imposes the restraint clause is to prove that it is in the interest of both parties

A unilateral advertisement is an offer and not an invitation to treat

30
Q

Adam v Lindsell

A

The postal rule states that if the post is the proper method of acceptance, acceptance is complete as soon as the letter is posted

31
Q

The mirror image rule

A

The mirror image rule states that in order to be accepted, any acceptance must correspond with the exact terms proposed by the offeror

32
Q

Manchester Diocesan for Education v Commercial & General Investments Ltd

A

Acceptance by different methods will suffice if the purpose in prescribing the method was to benefit the offeree and the offeree can therefore waive a stipulation for his own benefit or if the purpose was to benefit the offeror or offeree, then any method that is no less disadvantageous to the intended beneficiary will suffice

33
Q

Brinkibon v Stahag Stahl

A

Instantaneous acceptance occurs at the time the message is received on the offerors machine

34
Q

Entores v Miles Far East Corporation

A

Instantaneous acceptance occurs wherever the offeror is located

35
Q

Bret v JS

A

COnsideration must not be vague but real, tangible and have some actual value

36
Q

Re: McArdle

A

Past consideration is not good consideration

37
Q

Spencer v Harding

A

Letters or adverts asking for tenders are invitations to treat

38
Q

Byrne v Van Tienhoven

A

The communication of a revocation of an offer must occur in order for it to be truly revoked

39
Q

Parole evidence rule

A

The parole evidence rule states that where the contract has been put into writing only the terms included in the written documents are terms, any verbal statements are representations

However this rule does not prevent parties from adducing evidence of a custom or trade usage which will result in terms being added to the contract

40
Q

Eddington v Fitzmaurice

A

A statement as to future intent cannot amount to misrepresentation unless the representor had not intention of carrying out the stated intent

41
Q

Smith v Hughes

A

Silence will not amount to a misrepresentation

42
Q

With v O’Flanagan

A

If a statement becomes false because of a later change of circumstances, there is an obligation to disclose the change of circumstances

43
Q

HIH Casualty and General Insurance Ltd v Chase Manhattan Bank

A

Contracts made uberrimae fidei have a duty to disclose all material facts and a failure to do so will give rise to an action for misrepresentation

44
Q

Paradine v Jane

A

All obligations are absolute obligations

45
Q

Dimmock v Hallet

A

The representor must no misleadingly tell only part of the truth as this can amount to a misrepresentation

46
Q

JEB Fastners Ltd v Bloom Co

A

In order to take a successful action for misrepresentation, the representation must be material, this means that it was important enough to influence a person to enter into the contract

47
Q

Hedley Byrne Co v Heller and Partners Co

A

Where a statement is negligent and results in financial loss, damages can be awarded

48
Q

Remedy for fraudulent misrepresentation

A

Rescission and damages`

49
Q

Bars to rescission

A

Affirmation - Demonstrating a willingness to continue after becoming aware of the misrepresentation

Lapse of time

Where it is impossible to restore the parties to their pre-contractual position

Rights of a third party - e.g if you sell a car to another person after buying the car on a misrepresentation, that third party cannot sue the seller

50
Q

Duress…

A

Duress not only renders a contract void but is also actionable for tort if it causes damages or loss

51
Q

North Ocean Shipping v Hyundai

A

A threat to break a contract can amount to economic duress

52
Q

Skeate v Beale

A

Duress to goods is not recognised as giving rise to grounds for having the contract set aside

Contract Law (5 decks)

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