The Concept Of A Valid Contract Chapt 1

Question 1

What is a contract?

Answer 1

An agreement that gives rise to obligations and is legally enforceable

Consists of offer/ acceptance

Consideration and intention to be legally bound/create legal relations

Question 2

3 essentials of a valid contract

Answer 2

Agreement (offer and acceptance)

Each must have contributed something (consideration)

Parties must intend to create a legal relationship (both intend to be bound)- say both!!
So jones v padavatton not enforceable as family

Question 3

What is an offer?

Which case to use?

(2)

Answer 3

An expression of willingness to contract on certain terms with the intention of being legally bound on acceptance

Gibson v Manchester cc 1979 not an offer

Taylor v laird (must be clear)

Question 4

What does privity of contract mean?

Answer 4

Only parties to a contract are bound by it (Tweddle v Atkinson 1861) therefore only parties candid or be sued

Therefore generally a Contract cannot place a burden on a 3rd party (Dunlop v Pneumatic Tyre Co Ltd v Selfridge and co 1915)

Question 5

Established and attempted exceptions to privity

2 Acts and 1 case

Answer 5

S11 Married Women’s Property Act 1882

Jackson v Horizon Holidays 1975

Contract (rights of 3rd parties)act 1999

Question 6

Contract (rights of 3rd parties) act 1999 says that a third party can enforce a contract if:

Answer 6

S1(1)(a) expressly says so(avraamides)
S1(1)(b) term confers or purports to confer a benefit on him

S1(2) can't do it if contract shows parties didn't intend 3rd party to enforce
S1(3) can only enforce if expressly named/a member of a certain class or particular description - in Avraamides V colwill (2006) the wording was too imprecise to allow

Question 7

Where 3rd party has a right to enforce a contract, the other parties can reduce or deprive him of this and if it is silent they can until …

Answer 7

One of these things in S2 Contract (rights of3rd parties)act 1999

1. 3rd party communicates his assent to the term of the promisor
2. Promisor is made aware that 3p has relied on the term
3. Promisor can reasonably be expected to have forseen that 3P has relied on it(and he has)

Question 8

Dunlop Pneumatic Tyre Co ltd v Selfridge and Co ltd 1915

Answer 8

Dunlop wanted Selfridge to be banned from selling below a certain price

Contract was between Dunlop and wholesaler therefore Selfridge was not party to contract and couldn’t be given obligations under it

A contract cannot place a burden on a 3rd party

Question 9

Tweddle v Atkinson 1861

Answer 9

Privity of contract/only parties to a contract are bound by it and therefore can sue or be sued

2 fathers promised to pay money to a couple when they married. One father does b4 he paid. Son unable to recover money as he wasn’t a party to the contract

Question 10

Jackson v Horizon Holidays 1975

Answer 10

Exceptions to privity/third parties

Contracting party suing for loss suffered by 3rd party

Mr J allowed to recover for him AND his family despite being only contracted party

Question 11

S11 Married Womens Property Act 1882

Answer 11

Established exceptions to privity

Husband or wife who insure their life for the benefit of spouse, civil partner or child creates a trust in favour of them as a beneficiary.
A beneficiary can sue on policy even though nota party to the contract

Question 12

Avraamides v Colwill 2006

Answer 12

Contract rights of 3rd parties to enforce

S1(1)(a) contract (rights of third parties)act 1999

Pol- the contract must mention the third party by name in order to enforce otherwise privity of contract will still apply

Question 13

Offer and acceptance are the factual indicators of what?

Answer 13

Agreement

Agreeement is objective (Gibson v Manchester CC 1979
RTS Flexible systems v molkerei 2010)

Question 14

For big qu on whether valid contract

Answer 14

Go through

Offer
Acceptance
Consid
Intention

Link all to case study