Rules of Law Flashcards
Communication of an offer
An offer must be communicated to the offeree before it can be accepted
Payne v Cave
An offer can be revoked at any point before acceptance
Errington v Errington and Woods
An offer cannot be revoked once the offeree has started to perform the requested act
PSGB v Boots
Goods on a supermarket shelf are invitations to treat
Fisher v Bell
Items placed in a shop window are invitations to treat
The customer…
The customer always makes the offer
Esso Petroleum v Customs and Excise
Business and commercial cases are presumed to be binding
Harvey v Facey and Grainger and Son v Gough
A mere statement of price is not an offer capable of acceptance nor a promise
Gibson v Mancherster City Council
Letters or adverts asking for tenants are invitations to treat
R v Clarke and William v Cawardine
In order for a reward to be given to the offeree, they must have knowledge of it and act in reliance of it
Shuey v USA
The same notoriety must be given to the revocation that was given to the offer
Thornton v Shoelane Parking
The contract becomes binding when the money is put in the machine
Wilkie v London Passenger Transport Board
The contract is made when the intending passenger puts himself either on the platform or on the bus
Dickenson v Dodds
The revocation need not be communicated by the offeror himself
Felthouse v Bindley
Silence does not amount to acceptance
Denning in Entores
Not only must the words of acceptance be spoken, they must also be heard by the offeror
Hyde v Wrench
A counter offer revokes the original offer
Balfour v Balfour
Social and domestic cases are presumed not to be binding
Pinnels/Foakes
Part payment of a debt does not satisfy the whole debt
Equity..
Equity overrules the common law
Stilk v Myrick
Performance of an existing duty owed to a third party can be good consideration
Tweddle v Atkinson
Consideration must move from the promisee
The doctrine of privity is…
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
Contracts (Rights of Third Parties) Act 1999 S1(1)
Beswick v Beswick
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
Taddy v Sterious
The Restrictive Covenant cannot apply to contract law
Scruttons Ltd v Midland Silicones Ltd
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
S2 (2) Unfair Contract Terms Act 1977
A person cannot by virtue of a contractual term or notice exclude or limit their liability for negligence on death or personal injury
What the courts adopt in restraint of trade agreements
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
Carlill v Carbolic Smokeball Co. Ltd
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
Adam v Lindsell
The postal rule states that if the post is the proper method of acceptance, acceptance is complete as soon as the letter is posted
The mirror image rule
The mirror image rule states that in order to be accepted, any acceptance must correspond with the exact terms proposed by the offeror
Manchester Diocesan for Education v Commercial & General Investments Ltd
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
Brinkibon v Stahag Stahl
Instantaneous acceptance occurs at the time the message is received on the offerors machine
Entores v Miles Far East Corporation
Instantaneous acceptance occurs wherever the offeror is located
Bret v JS
COnsideration must not be vague but real, tangible and have some actual value
Re: McArdle
Past consideration is not good consideration
Spencer v Harding
Letters or adverts asking for tenders are invitations to treat
Byrne v Van Tienhoven
The communication of a revocation of an offer must occur in order for it to be truly revoked
Parole evidence rule
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
Eddington v Fitzmaurice
A statement as to future intent cannot amount to misrepresentation unless the representor had not intention of carrying out the stated intent
Smith v Hughes
Silence will not amount to a misrepresentation
With v O’Flanagan
If a statement becomes false because of a later change of circumstances, there is an obligation to disclose the change of circumstances
HIH Casualty and General Insurance Ltd v Chase Manhattan Bank
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
Paradine v Jane
All obligations are absolute obligations
Dimmock v Hallet
The representor must no misleadingly tell only part of the truth as this can amount to a misrepresentation
JEB Fastners Ltd v Bloom Co
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
Hedley Byrne Co v Heller and Partners Co
Where a statement is negligent and results in financial loss, damages can be awarded
Remedy for fraudulent misrepresentation
Rescission and damages`
Bars to rescission
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
Duress…
Duress not only renders a contract void but is also actionable for tort if it causes damages or loss
North Ocean Shipping v Hyundai
A threat to break a contract can amount to economic duress
Skeate v Beale
Duress to goods is not recognised as giving rise to grounds for having the contract set aside
