Contract Wksp 1

Front 1

Fisher v Bell

Back 1

An advertising display is generally an invitation to treat.

D charged with offering for sale a flick knife in his shop window. Sign displayed name of knife with price.

Front 2

Partridge v. Crittenden

Back 2

an ad in a publication is simply an invitation to treat.

D was charged with offering a live wild bird contrary to law.

Front 3

Carlill v Carbolic Smoke Ball

Back 3

advertisements of reward (ie- will pay you £x if…) will usually be offers (resulting in contracts). Also, displayed ability to waive need for communication of acceptance (acceptance was by completing the specified actions in this case.

The defendants, the proprietors of a medical preparation called “The Carbolic Smoke Ball,” issued an advertisement in which they offered to pay 100l. to any person who contracted the influenza after having used one of their smoke balls in a specified manner and for a specified period. The plaintiff on the faith of the advertisement bought one of the balls, and used it in the manner and for the period specified, but nevertheless contracted the influenza

Front 4

Barry v. Davies

Back 4

If auctioneer in a unilateral agreement refuses to accept the highest bid, the highest bidder will have a claim in damages against the auctioneer.

Front 5

Routledge v Grant

Back 5

An offer can generally be revoked at any time before acceptance, even if the offeror has said he will leave it open for a specified period of time.

Front 6

Mountford v Scott

Back 6

Exception to Routledge if offeree has given (or promised) something for the offeror in return for keeping offer open.

C paid £1 for the option to buy V's house for £10000, exercisable within six months. V purposrted to revoke the offer. C subsequently sought to exercise option.

Front 7

Byrne v Van Tienhoven

Back 7

Generally the revocation must be communicated to the offeree.

Front 8

Shuey v US

Back 8

offer made to the public at large may be revoked through the same channel as it is made provided the revocation is given the same prominence.

Front 9

Dickinson v Dodds

Back 9

Revocation can be made through a reliable third party.

Front 10

Errington v Errington and Woods

Back 10

In Unilateral contracts, generally offeror can not revoke once offeree has started to perform the act of acceptance.

Father bought a house in his own name, and allowed his son and daughter-in-law to live in it. He promised them that if they paid the mortgage instalments he would transfer the house to them. It was an offer of a unilateral contract as the couple didn't promise to repay the mortgage, they simply did so. When the father died his widow sought possesion of the house. It was held that the father's promise was irrevocable so long as the couple continued to pay the instalments.

Front 11

Hyde v Wrench

Back 11

counter offer iimplied rejection of orginal offer

D offered to sell farm for £1000. The C at first made a counter offer of £950, but two days later for £1000 and tried to accept the orginal offer. D refused and C sued. Was held that no contract existed.

Front 12

Stevenson v McLean

Back 12

Request for information

Front 13

Entores v Miles Far East Corp

Back 13

acceptance must be communicated

If the postal rule doesn't apply, retraction of an acceptance is clearly possible unless and until the acceptance is actually communicated, because until that point there will not be a binding contract.

Teletext acceptance will be effective when it would be reasonable to expect the recipient to have read it.

Front 14

Adams v Lindsell

Back 14

Generally, a letter of acceptance will be binding when posted.

Front 15

Holwell v Hughes

Back 15

Created requirements for postal rule

Front 16

Felthouse v Bindley

Back 16

Silence cannot be used as a means of accepting an offer.

Front 17

Balfour v Balfour

Back 17

presumption in social and domestic situations that parties did not intend to create legal relations.

Front 18

Merritt v Merritt

Back 18

Balfour assumption can be rebutted if: it is a matter of high consideration, parties are not on good terms, or a formal agreement in writing exists.

Front 19

Edwards v Skyways

Back 19

In Commercial interactions there is a very strong presumption of contractual intention, which is difficult to rebut.

Front 20

Powell v Lee

Back 20

Acceptance can be given via the authorized agent of the offeree or the offeree him or herself.

Front 21

Harvela Investments Limited v Royal Trust Company of Canada Ltd

Back 21

depending on the circumstance an invitation for tenders may give rise to a unilateral contract.

Front 22

Blackpool and Fylde Aero Club v Blackpool Borough Council

Back 22

If an invitation to tender is met by a conforming application the tenderer has the right to be considered.

Front 23

Stilk v Myrick

Back 23

Performance of an existing contractual duty owed to the other party will not normally amount to sufficient consideration for a promise by the other party to pay extra money.

Front 24

Elements of a legally binding contract

Back 24

- Agreement
- Intention to be bound
- Consideration
- Certainty of terms

Front 25

Offers may be rejected by...

Back 25

- Revocation of the offer
- Rejection by the offeree
- Lapse of time

Front 26

Requirements for postal rule to apply

Back 26

- Must be resonable to use post as a means of communication
- Be a properly posted letter
- Offeror must not have excluded the rule either expressly or through implication

Front 27

Offer definition

Back 27

an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

Front 28

Pharmaceutical Society of Great Britain v Boots

Back 28

Authority that goods on display are an offer that is accepted by placing the items in the trolley.

Front 29

Bilateral Contract

Back 29

Where one party makes a promise in return for a promise from the other party.

Front 30

Williams v Carwardine

Back 30

A typical type of unilateral contract is an offer of reward.

Front 31

s57(2) SGA 1979

Back 31

Sale by auction is complete on the fall of the auctioneer's hammer.

Front 32

Reserve price

Back 32

Price agreed between the auctioneer and the seller as being the lowest price which the auctioneer may accept for the lot.

Front 33

Lapse of Time

Back 33

The offeror may specify that the offer will stay open only for a particular time. if not, the offer will terminate after a reasonable time.

Front 34

Battle of the Forms

Back 34

Where two businesses who are in negotiation purport to contract on their own standard terms which are likely to be different from the other's. This results in an exchange of standard terms. the auestion is whether there is a contract at all. Ct will try and find a contract but may be unable to.

Front 35

Butler Machine Tool Co Ltd v Ex-cell-O Corp

Back 35

Battle of the Forms example

C offered to sell machine to D. D accepted the offer but with caveat that the price would be fixed. C had clause in orginal contract allowing for price increase to match inflation. C delivered machine and tried to collect additional £2,800. Ct ruled that D's form of acceptance amounted to a couter-offer which the C had accepted by returning a tear off slip. Therefore D didn't have to pay extra money.

Front 36

Brogden v Metro Railway Co

Back 36

In battle of the forms delivery of the machine might be regarded as acceptance by conduct of the last set of standard terms to be proffered. 'Last shot wins' mentatlity has developed.