Week One Flashcards

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1
Q

What is the definition of a contract?

A

An agreement between parties that is enforceable by law

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2
Q

What is a consensus ad idem?

A

Meeting of Minds

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3
Q

What case provides a precedent for Consensus ad Idem and what that is?

A

Mathieson Gee Ltd. v Quigley, no contract when parties offer different contracts.

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4
Q

What case provides a precedent for the validity of an offer?

A

Case: Thomson v James, an offer is only valid when communicated to the party.

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5
Q

What case provides a precedent for what could cause a Lapse of Offer and what that is?

A

Wylie & Lochhead v McElroy, factors affecting lapse: Market fluctuations and unreasonable delay.

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6
Q

What is a lapse of offer?

A

When an offer is no longer valid

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7
Q

What case provides a precedent for acceptance by conduct and what that is?

A

Carlill v Carbolic Smoke Ball Co, An offer can be made broadly, intended to form a contract upon condition fulfilment.

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8
Q

What case provides precedent for Silence in contracts and what that could mean?

A

Shaw v James Scott Builders & Co, silence may infer acceptance depending on circumstances.

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9
Q

What case provides a precedent for an invitation to treat and the distinction?

A

Carlill v Carbolic Smoke Ball Co, an offer can be made broadly to form a contract upon condition fulfilment.

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10
Q

What is the main role of private law?

A

To uphold rights and enforce duties.

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11
Q

What did Lord Hope of Craighead say about the function of the law in Chester v Afshar [2001] 1 AC [87]?

A

To enable rights to be vindicated.

Provide remedies when duties have been breached.

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12
Q

What are the four main categories of Private Law?

A

Persons

Property

Obligations

Actions

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13
Q

How are rights upheld and duties enforced in private law?

A

Rights are upheld and duties enforced via court-awarded remedies.

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14
Q

Give an example of a relationship that illustrates rights and duties in the ‘Persons’ category.

A

The relationship between parent and child.

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15
Q

What is the definition of property rights in private law?

A

Rights related to ‘things’ or property rights.

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16
Q

Give examples of property rights.

A

Ownership and rights in security.

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17
Q

Give examples of obligations in private law.

A

Debt and the right to damages for contract breach.

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18
Q

What do ‘Actions’ in private law refer to?

A

Rules of evidence and procedure.

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19
Q

Give examples of what ‘Actions’ in private law might include.

A

Admissibility of evidence and remedies.

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20
Q

What are the two types of obligations?

A

Voluntary Obligations

Involuntary Obligations

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21
Q

What is a Voluntary Obligation?

A

Contract: Obligation to pay or perform

Promise: Obligation to carry out the promise terms

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22
Q

What is an involuntary obligation in regard to contracts and promises?

A

Unjustified Enrichment: Obligation to restore the transferred benefit

Delict: Obligation to make reparation for harm wrongfully caused

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23
Q

What is unjustified enrichment?

A

When someone benefits at the expense of another

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24
Q

What is a delict?

A

A wrongful act that brings harm to someone or their property.

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25
Q

What are some varieties of contracts in Scots Law?

A

Sale of goods or services

Sale of land

Employment contracts

Consumer credit agreements

Insurance contracts.

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26
Q

What are the common principles of the Scots Law of Contract?

A

Formation

Defective agreements

Contractual terms

Breach of contract

Remedies.

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27
Q

How is Private Law important and how it functions?

A

Facilitates trade

Underpins transactions

Protects against abuse of power, especially in unequal bargaining situations (e.g., consumer contracts)

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28
Q

What is the doctrine of consideration in English Law?

A

A principle that requires each party to provide something of value for a contract to be binding.

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29
Q

What is the doctrine of promise in Scots Law?

A

It is a principle where a promise can be binding without the need for consideration.

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30
Q

What are the essential questions to consider in contract law?

A

Is there a contract?

What is in the contract?

Can it be enforced?

Can a person exit the contract?

When will the contract terminate?

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31
Q

What are the principal remedies in contract law?

A

Declarator, payment, specific implement, interdict, and damages.

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32
Q

What is required for consensus in idem in contract law?

A

Agreement on the same thing, including the nature of the contract, the subject(s) of the contract, and the price or consideration.

Meeting of minds

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33
Q

What was the issue in Muirhead and Turnbull v Dickson (1905)?

A

The nature of the contract (sale vs hire purchase).

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34
Q

How did the court approach the issue in Muirhead and Turnbull v Dickson (1905)?

A

The court focused on the actual words exchanged rather than subjective intentions.

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35
Q

What was the offer made by Mathieson Gee (MG)?

A

MG offered to supply equipment for silt removal.

36
Q

How did Quigley (Q) interpret MG’s offer?

A

Q accepted the offer but interpreted it as a removal service.

37
Q

What was the outcome of the case Mathieson Gee (Ayrshire) LTD v Quigley?

A

No contract was formed due to a lack of mutual understanding.

38
Q

What must be clear and objectively analyzed for consensus in contract law?

A

Consensus must be clear and objectively analyzed based on communication between parties, not internal intentions.

39
Q

What must be clear and aligned for a contract to be legally binding?

A

Offer and acceptance must be clear and align in terms of expectations and terms.

40
Q

When is a statement considered an offer?

A

A statement is an offer when its terms are sufficiently clear to indicate the intention of the offeror to be bound in a contract upon acceptance by the offeree.

41
Q

Is “I will sell you my bike for £10” an offer or an invitation to treat?

A

This is an offer as it is clear and indicates intent to be bound.

42
Q

Is an advert stating “Bike for sale £10” an offer or an invitation to treat?

A

Generally, it is an invitation to treat, not an offer.

43
Q

Is the statement “The lowest price I’ll take is £900” considered an offer?

A

Generally, it is not considered an offer.

44
Q

Are goods on display with a price attached considered an offer or an invitation to treat?

A

Typically, they are an invitation to treat.

45
Q

Is the statement “Would you like to buy my donkey?” an offer or an invitation to treat?

A

Usually, it is an invitation to treat, needing further negotiation.

46
Q

What does Philp & Co v Knoblaugh 1907 SC 994 examine?

A

It examines clarity in offers.

47
Q

What was the ruling in Partridge v Crittenden [1968] 1 WLR 1204 regarding adverts?

A

The court held that the advertisement was not an offer but an invitation to treat, and as such the defendant was not guilty.

48
Q

What was judgment in Carlill v Carbonic Smoke Ball Company LTD [1893]

A

The Court of Appeal found for the claimant, determining that the advert amounted to the offer for a unilateral contract by the defendants. In completing the conditions stipulated by the advert, Mrs Carlill provided acceptance. The Court further found that: the advert’s own claim to sincerity negated the company’s assertion of lacking intent; an offer could indeed be made to the world; wording need only be reasonably clear to imply terms rather than entirely clear; and consideration was identifiable in the use of the balls.

49
Q

What did Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 determine about self-service?

A

The Court of Appeal found no breach of the Act. The contract was completed upon payment, not when items were selected from the shelves. The customer made an offer at the till, accepted upon payment, and could return items before paying.

50
Q

What did Fisher v Bell [1961] 1 QB 394 conclude about goods on display?

A

The display of the knife was not an offer of sale but merely an invitation to treat, and as such the defendant had not offered the knife for sale within the meaning of s1(1) of the Act. Although it was acknowledged that in ordinary language a layman might consider the knife to be offered for sale, in legal terms its position in the window was inviting customers to offer to buy it.

51
Q

What was the issue in Harvey v Facey [1893] AC 552?

A

The clarity of the lowest price and whether it constituted an offer.

52
Q

What was the ruling in McArthur v Lawson (1877) 4 R 1134?

A

The court found the partnership promise too vague for specific performance but allowed for damages if terms were clear enough to calculate. Lawson’s refusal was deemed unjustifiable, and the case proceeded to assess damages.

53
Q

What did Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594 address?

A

The key issue was whether the pricing error affected the contract’s validity.

54
Q

What is an invitation to treat?

A

An invitation to treat is not an offer. It cannot be accepted to form a contract but requires a subsequent offer.

55
Q

What are common examples of invitations to treat?

A

Displays in shop windows and on shelves, and adverts are generally invitations to treat.

56
Q

Can some adverts be considered offers?

A

Yes, some adverts have been considered offers if they show clear intention.

57
Q

What was the issue in Pharmaceutical Society of Great Britain v Boots?

A

Did the contract of sale conclude when the customer selected the products from the shelves or when the items were paid for? Were the products on shelves offer or IIT

58
Q

When was the offer made in the Boots case?

A

The offer was made when the customer brought the item to the checkout.

59
Q

When was the contract formed in the Boots case?

A

The contract was formed upon acceptance at the checkout.

60
Q

What were the facts of Carlill v Carbolic Smokeball Co?

A

The Carbolic Smoke Ball Company placed an advertisement in a newspaper offering a £100 reward to anyone who purchased and used their product but contracted influenza. The claimant, MrsCarlill, attempted to claim the reward, but the defendants argued it was an invitation to treat and a mere puff and lacked true intent, rather than an offer and that an offer cannot be made to the world.They also argued there was no consideration

61
Q

Why was the advert in Carlill v Carbolic Smokeball Co held as an offer?

A

It was held as an offer due to the expressed intent and promise.

62
Q

What was the key question in Carlill v Carbolic Smokeball Co?

A

Was the advert an offer or an invitation to treat?

63
Q

What was the conclusion in Carlill v Carbolic Smokeball Co?

A

The advert was concluded as an offer leading to a contract upon acceptance.

64
Q

What are the key questions to consider when distinguishing between a contract and a promise?

A

Is it binding in law?

Does it need to be in writing?

Does there need to be an agreement?

Does there need to be an acceptance?

Does it need to be communicated?

Can it be revoked?

65
Q

What is the context of the bequest in a will scenario with reference to what case?

A

E indicates she will leave money for a church in her will. (Case Reference: Smith v Oliver 1911 SC 103)

66
Q

What is the context of the monetary offer to society scenario with reference to what case?

A

F offers to pay money to a Society, which agrees to accept. (Case Reference: Morton’s Trustees v Aged Christian Friend Society of Scotland (1899) 2 F82)

67
Q

What is a promise in legal terms?

A

A promise is unilateral, not requiring the acceptance of another unless rejected. (Referenced by Stair, Institutions, I.10.4)

68
Q

What are the principles of a promise?

A

Unilateral Obligation: Must be written and signed unless made during business. (Requirements of Writing (Scotland) Act 1995 s.1 (1) (a) (ii))

Serious Intention: Must reach desire, resolution, and engagement. (Example Case: Cawdor v Cawdor [2007] CSIH 3)

Communication: Must be communicated and is irrevocable once made but can be rejected.

Acceptance: No acceptance needed, but may be conditional.

69
Q

What is an example of a promise in commercial use?

A

An oral promise by a bank manager to lend money. (Case Reference: Carlyle v RBS [2015] UKSC 13)

70
Q

What case involves keeping an offer open?

A

Littlejohn v Hadwen (1882) 20 SLR 5.

71
Q

What is an example of a promise of a reward?

A

Promise of a reward or offer acceptance by conduct. (Case Example: Petrie v Earl of Airlie (1834) 13 S 68)

72
Q

Why is it important to distinguish between contracts and promises?

A

It is essential to understand their legal implications, conditions, and utility in different scenarios.

73
Q

What was the final conclusion for Philp v Knoblauch 1907?

A

Offer as the phrasing at the start stated the word ‘offer’, not invitation to treat because the information was so specific that must have had intention to conclude a contract. All the essential terms there.

74
Q

What are the facts of Partridge v Crittenden [1968] 1 WLR 120?

A

The defendant advertised for sale a number of Bramblefinch cocks and hens, stating that the price was to be 25 shillings for each. The defendant was found guilty of offering wild live birds for sale, which was illegal under the Protection of Birds Act 1954.

75
Q

What was the main issue of the case Partridge v Crittenden?

A

Was the ad construed as an offer of sale or an invitation to treat?

76
Q

What was the main issue in Fisher v Bell [1961]

A

The issue was whether the display of the knife constituted an offer for sale (in which case the defendant was guilty) or an invitation to treat (in which case he was not).

77
Q

What was the facts of the Fisher v Bell [1961] case?

A

The defendant shopkeeper displayed in his shop window a flick knife accompanied by a price ticket displayed just behind it. He was charged with offering for sale a flick knife, contrary to s. 1 (1) of the Restriction of Offensive Weapons Act 1959.

78
Q

What was the facts of the case Harvey v Facey?

A

The claimants sent a telegraph asking if the defendant was willing to sell them a piece of property (BHP). They asked what price the defendant would sell it for. The defendant responded by telegraph: ‘Lowest price for B. H. P. £900’. The claimant responded: ‘We agree to buy B. H. P. for £900 asked by you. Please send us your title-deed in order that we may get early possession’. The defendant did not reply. The claimant contended that there was a completed contract for the property.

79
Q

What was the precedent was set in Harvey v Facey

A

Asking for information about a potential contract is not normally an offer. Responding with information is also not usually an offer.

This case is also implicit authority for the idea that silence is not sufficient to accept an offer. The defendant in this case did not, through their silence, accept the claimant’s offer.

80
Q

What were the facts of Chwee Kin Keong v Digilandmall Pte Ltd?

A

Digilandmall.com, an online IT company from Singapore, mistakenly listed an HP laser printer for $66 instead of $3,854. Over 4,000 printers were ordered before the error was noticed. The company then emailed customers, including those who ordered over 100 printers each, to cancel the orders.

81
Q

What was the judgment of Chwee Kin Keong v Digilandmall Pte Ltd?

A

The court ruled the contract void due to a fundamental pricing mistake. The complainants should have known the price was an error. There was no “meeting of the minds,” so no binding contract existed.

82
Q

What were the facts of the case McArthur v Lawson?

A

The dispute centers on an employment contract wherein the defendant, Lawson, allegedly promised the plaintiff, M’Arthur, a substantial interest in his business as a partner after a period of managerial service.

83
Q

What is the main issue of McArthur v Lawson?

A

Whether such a promise constitutes an enforceable contract capable of specific implementation or whether it remains a mere expectation, thereby only warranting damages in the event of a breach.

84
Q

What are the facts of Wolf and Wolf v Forfar Potato Co?

A

Potato supply contract negotiations failed. No final agreement; Forfar didn’t supply potatoes. Wolf and Wolf sued for £36,186.

85
Q

What are the main issues of Wolf and Wolf v Forfar Potato Co

A

Contract Formation: Whether a legally binding contract was created between Wolf and Wolf and Forfar Potato Co.

Damages: Whether Wolf and Wolf could sue for damages due to Forfar Potato Co.’s failure to supply the potatoes, resulting in a loss for Wolf and Wolf.

86
Q

What is the judgment for Wolf and Wolf v Forfar Potato Co?

A

Ratio Decidendi: A contract cannot be accepted once a new offer or conditions are proposed. Negotiations with new terms invalidate previous offers.

87
Q

What are court-awarded remedies?

A

A court awarded remedy is a legal order that compensates a person who has been wronged or enforces a right.