Week 4 - Termination of a Contract Flashcards
What are the four ways in which a contract can be terminated?
- by acceptance
- by rejection
- by revocation
- by lapse of time
What is a way in which an offer can be rejected?
By proposing a counter offer
What case is a good example of a counter offer?
Hyde v Wrench (1840)
Explain the case of Hyde v Wrench (1840)
Wrench offers to sell his farm for 1k (og offer)
Hyde says he will buy it for £950 (counter offer)
Wrench rejects this
Hyde writes back offering at 1k (new offer)
The counter offer destroys the original contract, now Hyde is the one making the offer
Is asking to pay in instalments a counter offer? What case does this refer to?
No, it is asking for more information - Stevenson v McLean (1880)
What does a contract being terminated by revocation mean?
The person that made the offer comes back before the other side has accepted, saying they no longer want to go ahead
What is the condition for revocation to be viable?
It must be communicated, even if by a third party who is in the know
Which case involves revocation via a third party?
Dickinson v Dodds (1876)
Can you accept an offer you don’t know about e.g rewarding for finding lost dog?
No
What happens in the case of Errington v Errington (1952)
- father in law buys marital house and pays first few mortgage payments
- he says if daughter keeps paying for it and anything happens to father it will then be hers
- after dying rest of family tries to claim house
- the offer could not be revoked as the daughter had accepted the offer and acted on it
