Week 2: Enforceability and Formalities

Question 1

What case highlights that an agreement to agree is an incomplete agreement and thereby not enforceable?

Answer 1

May & Butcher v The King.
- Price to be agreed as tenture become available.

Question 2

What case highlights that there is no contract for uncertainty?

Answer 2

McArthur v Lawson.
- Vague and general understandings cannot be enforced.

Question 3

Certum est certum redid Potest

Answer 3

That which is uncertain must be made certain.

Question 4

Identify methods of determining price.

Answer 4

1. Arbitration (Foley v Classique Coaches)
2. Reference to open market value (Scottish Whole foods Collective Warehouse Ltd v Raye Investments Ltd)
3. Employment of surveyors (Cortney & Fairbairn v Tolaini Bros (Hotels) Ltd)

Question 5

What is the common example used to demonstrate Quantum Meruit ?

Answer 5

Wilkie v Scottish Aviation Ltd
- Architect submitted drawings to Scottish aviation, but no price was agreed.
- Scottish aviation did not pay.
- While no price was agreed, Wilkie was entitled to compensation of that which reflected the mean price of the service.

Question 6

What case highlights that price isn’t necessarily always an essential term.

Answer 6

R&J Depster v Motherwell Bridge and Engineering Co.
- Shortage of steel
- No price agreed
- Price was less important than under usual circumstances.

Question 7

What case highlighted that parties were entitled to reasonable ruination in the event there is dissensus on price

Answer 7

Avintair v Ryder Airline Services Ltd
- Consultancy firm negotiated with Ryder, who negotiated with Pakistan Airlines
- Avintair won the case
- Contract was performed, therefore Avintair entitled to reasonable rumination for services provided

Question 8

What case highlights that domestic agreements are not enforceable?

Answer 8

Balfour v Balfour.
- Social agreement between Husband and Wife
- Wife to be payed a monthly allowance
- Not legally binding

Question 9

What case highlighted that some social agreements are legally binding.

Answer 9

Robertson v Anderson.
- Agreement to share bingo winnings
- Party won £100,000 and did not share
- Binding because parties concerned treated this seriously (intention to be legally bound)
- Patrimony was £50K

Question 10

Which case highlights that it is possible to have a non-binding agreement should such terms be explicitly stated.

Answer 10

Rose and Frank Co v JR Compton & Bros.
- Clause stated that agreement was to be in honour only and thus not binding.
- No intent to be legally obligated
- No contract declared

Question 11

Which case highlighted that there is no intention to be legally bound until parties sign the contract.

Answer 11

Karoulias SA v Drambuie Liquer Co Ltd.
- Written agreement, not yet signed
- No intention to be legally bound until signature provided
- No evidence of intention
- Court ruled in favour of defendant

Question 12

What case highlighted that performance is a form of acceptance.

Answer 12

Flexible Systems
- Party had begun service
- There was no agreement
- Agreement not enforceable until signed
- Regardless there was performance, therefore acceptance was implied through signature

Question 13

What are the three forms of agreement ?

Answer 13

1. Pure
2. Future
3. Contingent

Question 14

What are the two types of contingent acceptance?

Answer 14

1. Suspensive.
2. Resolutive.

Question 15

What are the tow circumstances in which an agreement must be in writing (as outlined in the RWSA 1955)

Answer 15

1. Gratuitous unilateral obligation
2. When concerning a real right of land

Question 16

What Act regulates the formation of contracts in Scotland.

Answer 16

Requirements of Writing Act 1955.