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12 Cards in this Set
- Front
- Back
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For a contract to be legally enforceable, what three crucial elements must be present? |
agreement between the parties (offer and acceptance); • bargain (consideration); and • contractual intention. |
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In summary how do people usually create contract? |
Parties usually reach an agreement by the making of an offer and an acceptance of that offer. The offer and the acceptance need not be in writing and can be made by way of a promise. |
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In situations where the agreement leaves acts to be performed by both parties, the contract is described as ; ? |
A bilateral contract |
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if those acts are outstanding to be performed by only one side, |
then the contract is regarded as a unilateral contract. |
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In summary, what is an offer? |
An offer is a statement made by the offeror, the person making the statement who accepts to contract on terms stated and |
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What important point must one comsider in making an offer? |
An important aspect of an offer is that the offeror must intend to be bound by the offeree, accepting those terms of the agreement without further negotiation. |
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What important point must one comsider in making an offer? |
An important aspect of an offer is that the offeror must intend to be bound by the offeree, accepting those terms of the agreement without further negotiation. |
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What's the difference between an offer and invitation to treat? |
distinguish between an offer which is legally binding and an invitation to treat where the offeror invites the offeree to make an offer, and has no legal status. An invitation to treat is perhaps best explained by examples: statements of prices, goods on display at a price in shop windows, or on supermarket’s shelves, catalogues and circulars offering goods for sale, an advertisement for an upcoming auction, enquiries about wages, and job qualifications for a particular jo |
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What's the locus classics on invitation to treat? |
the classic case of Fisher v Bell (1960) Facts a shopkeeper had displayed a knife in a shop window with a price tag on it and described it as an ejector knife. The shopkeeper was prosecuted for offering for sale a flick knife contrary to s 1(1) of the Offensive Weapons Act 1959. Holding The court held that the shopkeeper was not guilty of the offence Why? because the displaying of the knife in the shop was an invitation to treat and was therefore not a contravention of the statute. |
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Not all displays and advertisements are to be regarded as invitations to treat. True or False? |
In Carlill v Carbolic Smoke Ball Co (1892), the court held in the plaintiff’s favour in deciding on a number of issues raised in the pleadings, that it is possible to make an offer to the whole world. In a more recent case, Thornton v Shoe Lane Parking Ltd (1971), it is said that a notice which was displayed at the entrance of a car-park was an offer not an invitation to treat, because the only act of acceptance necessary was driving into the car-park. |
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In situations where there is dispute about whether the parties were in agreement at the material time, what does the court do? |
the courts apply an objective test to ascertain what the parties meant. Inferences are drawn from the circumstances of the negotiations as to what the parties intended, and their words and conduct are analysed with a view to determining whether they intended to contract on certain terms, whether the offer was made, communicated and accepted. Any acceptance made by the offeree must relate to the terms of the offer; if the offeree makes a counter offer it negates the original offer so that |
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What's the locus classicus on counter offer? |
In Hyde v Wrench (1849), D offered to sell P a farm for £1,000. P made an offer of £950 which D refused. P then at a later date said he would pay the £1,000 and sued to enforce the contract. The court held that no contract existed. By making a counter offer of £950, P had rejected and nullified D’s original offer and it was not possible for him to revive the original offer by a later acceptance. 10 |
