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36 Cards in this Set
- Front
- Back
- 3rd side (hint)
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what ia a contract
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a voluntary assumption of an obligation
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the general rule of a contract is that law will not interfere with?
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1) the making of a contract
2) determining the terms |
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when the gerneral rules have exceptions it is known as?
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Laisserz faire Philosphy (freedom to contrsct philosophy)
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in what 3 cases does law interfere in the making of a contrsct according to Laisserz faire philosphy?
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1) when both parties dont share equal right
2) in the use of standard terms when it comes to making a contract 3) the practice of excluding liabilty for breach of contract |
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in what 3 ways would the law intervene?
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1) by prohibiting certain contracts made
2) by implying certain terms to contracts 3) by prohibiting the exclusion of terms relating to liabilities. |
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what is the subjective test?
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● based on the consensus adiden ( meeting of the mind)
● looked at the intentions of both parties |
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weaknesses of the subjective test?
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un uniformity
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define the objectivity test
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"wether a reasonable person in the position of a party would have believed that the other intended to contract. actual intention of the party was not looked into, but what was important was the opinion of the reasonable person"
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★how was the objectivity test defined by Justice Blackburn in the case of Smith v. Hughs
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"if whatever a mans real intentions may be, he so conduct himself that a reasonable man would believe that he was assenting to the terms proposed by the other party and the other party, ,upon that belief, enters into a contract with him. the man thus conducting himself would be equally bound as if he had intended to agree to the parties terms"
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Centrovincial estates v. merchant investors
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the land lord offered to renew the lease at £65, 000 and the tenant agreeed. the land lord theb demanded a rent of £126, 000.
the court adopted the objective test and decided that there was in fact a contract for £65, 000. |
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when is an element of the subjective test adopted?
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when one party knows or ought to have known that the other party made a genuine mistake.
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Hartag v. Collins & Shields
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both parties were in the animal skin trade where skins are sold by the piece instead of by the pound. the seller offered to sell the skins by the pound and the buyer agreed. court declared that the buyer knew that the seller made a mistake and chose to take advantage of that. they did this by considering the ACTUAL INTENTIONS OF THE PARTIES.
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the 4 elements of a contract
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1) offer
2) acceptance 3) consideration 4) intention to create legal relations |
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define offer
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a firms undetaking to be bound in the event if terms are accepted by the other party. it is a willingness to contract on given terms. it must be FINAL, UN AMBIGUOUS AND CERTAIN.
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Gibson v. Machester City Council
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the house of lords insisted on the orthodox apporach where a reasonable perskb would have to identify the offer made
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white v. bluett
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a father offered to release a son from an obligation to pay a debt provided the son stopped complaining.
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UNCERTAINITY LEADING TO AN INVITATION TO TREAT
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guthing v. lynn
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a man offered to buy a horse if the horse was lucky
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UNCERTAINITY LEADING TO AN INVITATION TO TREAT
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Harvey v. Facey
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the prospective purchaser inquired the lowest cash prize for a farm named Bumper Hall Tenn. the owner sent a telegram stating that the lowest prize was £900. the prospective purchaser perpeted to accept the offer.
court refused to recognize an offer made and reasoned that it was merely a supply of information |
SUPPLY OF INFORMATION LEADING TO AN JNVITATION TO TRADE
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Grainger v. Gouch (guff)
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a wine merchant sent a list of his wines with prices to customers.
court held it was only a supply of information. |
SUPPLY OF INFORMATION LEADING TO AN INVITATION TO TRADE.
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Harris v. Facey
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an auction was advertised giving the date, venue and goods to be auctioned
court said such a notice of an event to be held is only an expression of information to hold the event. not an offer of the goods at the auction. |
AUCTIONS DISTINGUISHED FROM OFFERS
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Pane v. Cabe
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Courts said that at an auction it is the bidder that places the offer therefore leaving it to the auctioner to accept or reject the offer placed. the fall of the hammer signifies acceptance.
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AUCTIONS DISTINGUISHED FROM OFFERS
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Fisher v. Bell
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a pharmaceutical company v. Boots, it was held that a display of goods in the window or shop shelves, even with price tags, will not be an offer but an invitation to treat. it is usually rhe customer making the offer.
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AUCTIONS DISTINGUISHED FROM OFFERS
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Partridge v. Crittenden
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court held that an offer to sell goods is merely an invitation to treat. in the said case, the offer to sell some rare birds was held to be an invitation to treat as it lacked the qualities of an offer.
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CLASSIFIED NEWSPAPER ADVERTISMENTS LEADING TO TREAT
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Bigg vs Boyd Gibbins Ltd
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the owner wrote to a prospective buyer stating the price. court held that in this instance it was an offer. the words used showed clear instance to sell the house.
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AN INQUIRY OR STATEMENT OF PRICE GIVIG RISE TO AN OFFER
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Thornton vs. Shoelace Parking
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a notice offering a parking facility with parking charges and other terms and conditions was held to be an offer. it was final and certain expressions of willingness to contract with motorists. by driving their vehicles into the parking lot, the motorists accept the offer.
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Bowerman vs. ABTA
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a notice displayed at an office of a travel agent by ABTA saying that the association will repay the orice of a cancelled holiday, was treated as an offer, to all customers who has booked a holiday through the agency.
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AN INQUIRY OR STATEMENT OF PRICE GIVING RISE TO AN OFFER
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Wilkie vs. London Transport Board
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court held that an omnibus operator, by putting the bus on the road to carry passengers is making an offer. the offer is accepted when the passengers boards the bus.
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AN INQUIRY OR STATEMENT OF PRICE GIVING RISE TO AN OFFER
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★ Warlow vs Harrison
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● there was a notice of an auction which stated that the auction would he held without a reserved price.
● a bidder attended the auction and placed the highest bid for a horse. ● the auctioneer rejected the bid on the grounds that it was lower than the reserved price. ● firstly, court had to decide wether the bidder was entitled for the horse. court held that as an offer was made but rejected, no contract was made. ● secondly, court decided if the bidder can sue the auctioneer for damages, depending on wether there was a binding contract between the parties to hold an auction without a reserved price ● court claimed that there was one infact such a contract and since the auction was held with a reserved price it was a breach of contract. |
CLASSIFIED ADVERTISEMENTS CONSTRUED AS OFFERS
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★Blackpool vs Blackpool
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● the local airfield intended to rent out an airfield.
● it called for tenders to be recieved before a certian deadline. ● X sent his tender beforw the deadline but due to an oversight it wasnt opened. there were 2 issues to be dealed with I) wether x was entitled to the airfield. ii) wether x can sue for damages. (I- no because his offer was not acceptee so a contract was not made. ii- yes as the local authorites made the offer and he accepted it by sending in his tendor so there was a breach of contract) |
CLASSIFIED ADVERTISEMENTS CONSTRUED AS OFFERS
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★ Carlill vs. Carbolic Smoke Ball co.
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the defendant company placed an advertisement on a newspaper offering a reward of £100 to anyone who had their smoke balls and still got influenza. when a customer claimed the reward, the defendants argued thay the advertisement were an invitation to treat.
court declared that it was infact an offer and they were influenced by the statement in the ad that there was a special bank account opened to pay the reward money, showing that the defendant was serious about their offer. |
UNILATERAL OFFERS.
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★Gibson vs. Manchester city Council
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The treasure wrote to Gibson saying that the council "may be prepared to sell the house to you at the purchase price of £2725 ( less 20% ) and if you would like to make a formal application to buy please complete the enclosed form and return it to me as soon as possible.
Gibson completed the forms and returned it but the council decided to abandon the selling of houses to tenants. court held that there was no agreement to sell. the treasurers letter was not final therefore it was only an invitation to treat. |
UNILATERAL OFFERS.
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★ Storer vs Manchester City Council
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the town clark wrote to mr.Storer " I understand you wish to purchase your council house and endorse the agreement to sell, if you will sign the agreement and return it to me, I will send you the agreemnt signed on behalf of the city council.
court held that this was the offer as there was a firm understaking to sell. |
UNILATERAL OFFERS.
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what is acceptance
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accepting an offer put forward
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what are the 4 rules to a contract
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1)acceptance must be unconditional.
2)acceptance must be on identical terms with the offer. 3)acceptance when made, must be with full knowledge of the offer. 4)acceptance should be communicated on actual facts to the offer. |
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chilling vs. Esche
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the offeree accepted the terms of an offer and requested that the terms be put down in writing by a solicitor. court held that this was good acceptance in law and not conditional.
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acceptance must be unconditional
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the 4 rules of acceptance
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1) mist be unconditional
2) must be made with full knowledge of the offer 3) acfeptance must be on final terms of tje offer. 4)must be communicated on actual fact |
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