Contracts - Offer And Acceptance

Front 1

What is a Contract?

Back 1

Agreement between more than 1 party, which mayinvolve several conditions and is enforceable by law.All the elements must be fulfilled to see ifit’s enforceable

Front 2

Formation of a contract

Back 2

Agreement should include offer and acceptance, intention to create legal relations, consideration, terms of that contract, contents.

Hint 2

What elements need to be fulfilled to create a contract.

Front 3

Factors that may Bring a Contract Down

Back 3

Mistake, misrepresentation (Act), exploitation, illegality

Hint 3

What causes the contract to be void.

Front 4

What is an agreement

Back 4

Oral or written statements between two parties, to do something, in which both parties play a role and benefit in some way.

Front 5

What is an offer?

Back 5

A definite promise to be bound provided thatcertain specified terms are accepted (textbook)

Front 6

What is an invitation to treat?

Back 6

Statementsto others inviting them to make offers (shop displays/ adverts).

Front 7

What are tenders? Are they offers?

Back 7

Calls for tender are not offers, unless they clearlyindicate the highest or lowest tender will be accepted. However, the submitted tender is usually the offer.

Front 8

What is the Global Approach?

Back 8

Looking at the contract as a whole, rather than just forcing parts of the contract into offer and acceptance.

Front 9

What case did the Global Approach arise from?

Back 9

Boulder Consolidation Ltd v Tangaere

Cooke J developed the global approach – taking a step back and looking at it in a less constricted way of offer and acceptance.

Front 10

Dangers of the Global Approach?

Back 10

Aotearoa v Scancarriers: By using a holistic (global) approach the courtmay accidently create contractual terms not intended by the parties involved,which is beyond the court’s powers.

Front 11

Carlill v Carbolic Smoke Ball Company

Back 11

Carbolic (D), put adverts advertising rewards for using smoke ball properly and still catching influenza. Carlill (P), did as directed and still got influenza. She tried to claim the reward.

Hint 11

What are the facts of this case?

Front 12

Carlill v Carbolic Smoke Ball Company

Back 12

Issue - Could carlill claim the 100 pounds?

Held - yes she could.

Definition of offer and acceptance developed.

Hint 12

What are the issues and the judgements arisen from this case?

Front 13

Partridge v Crittenden

Back 13

Did this advertisement amount to an unlawfuloffer for sale of a wild live bird contrary to the Protection of Birds Act 1954. Court found that there was not enough languageevident for it to be an offer.

Hint 13

What is the legal principle in this case? What was the issue and decision reached by the courts?

Front 14

Boots Cash Chemist

Back 14

Did the sale take place in front of a qualifiedpharmacist?

Offer is made by the purchaser to buy and thevendor can accept or decline the offer made by the purchaser.

Display of items are invitations to treat, not offers.

Hint 14

What is the legal principle in this case? What was the issue and decision reached by the courts?

Front 15

Harvey v Facey

Back 15

1st telegram – not an offer· 2nd telegram – was not an offer

court found 3rd telegram – was not acceptancebecause an offer wasn’t established in the second telegram (only an offer wasmade). Therefore, the defendant has the right to acceptor decline the offer.

Hint 15

What is the legal principle in this case? What was the issue and decision reached by the courts?

Front 16

Harris v Nickerson

Back 16

Auctions are an invitation to treat – courtsfindings

Drove to an auction which was cancelled theplaintiff sued because he thought there was a contract.

Hint 16

What is the legal principle in this case? Facts, issues and decision?

Front 17

Barry v Davies

Back 17

Auctions without reserve are offers, to thehighest bidder. Where an auction takes place without reserve theauctioneer makes a unilateral offer which is accepted by submitting the highestbid.

Hint 17

what is the legal principle in this case?

Front 18

Boulder Consolidation Ltd v Tangaere

Back 18

Was a compliment slip a contract? The High Court said there was an offer. Defendant appealed. Court of Appeal said no there is no contract(overturned High Court’s decision). All the judges concluded that there were justnegotiating and exploring the available options. Used global approach successfully.

Hint 18

Facts, issues, decision and legal principle?

Front 19

Aotearoa v Scancarriers

Back 19

Talex from Scancarriers stated a ‘promotionalrate’ held at US 120 until the 29/7/82. Aotearoa used this talex and did business, suffered loss and sued scancarriers that the talex was an offer.

Hint 19

Facts and Issue?

Front 20

Aotearoa v Scancarriers (Court of Appeal decision)

Back 20

Was the talex an offer? Court of Appeal used the global approach andfound that the talex was a contract. It included an applied term, meaning there was a period of which they will not refuse.

Hint 20

What did the Court of Appeal say in this case?

Front 21

Aotearoa v Scancarriers (Privy Council)

Back 21

The privy council overturned the court ofappeal’s decision. The CoA implied terms which were not there. Furthermore, there were not sufficient terms to amount to a contract.

Hint 21

What did the Privy Council say in this case?

Front 22

What is acceptance?

Back 22

Acceptance must be expressed explicitly or implicitly by the offeree to accept the terms of that contract. As soon as acceptance has been made, the contract is enforceable.

Front 23

Can terms be accepted through conduct?

Back 23

Yes.Agreement can be inferred from writing, words orconduct.

Front 24

Brogden v Metropolitan Railway Co.

Back 24

B supplied coal for years without formalagreement. Contract sent to B. B signed and returnedcontract marked ‘approved’. Railway Co. agent placed in desk withoutsigning. Parties acted on contract – supplying and payingfor coal under its terms. A dispute arose, B denied contract existed.

Hint 24

What are the facts and issues of the case?

Front 25

Brogden v Metropolitan Railway Co.

Back 25

Agreement inferred from conduct. Judge found that by the defendant’s actions acted as acceptance, therefore a contract existed (acceptance) although there was no formal agreement.

Hint 25

What are the judgements and the legal principle from this case?

Front 26

Savy v Vineyards

Back 26

Contracts between Goldridge and vineyard owners(K&W) for the supply of grapes. Formal documents sent to K&W – an offer tocreate new contracts between K&W and new companies. K&W did not execute the agreements; paidinvoices and dealt with the new companies on the basis they were parties to theagreements when disputes arose.

Hint 26

What are the facts of this case?

Front 27

Savy v Vineyards

Back 27

Issue: whether K&W had accepted the offer by their conduct?

Held: conduct amounted to acceptance of terms. · Many dissenting judgments 5/9. Followed Brogden. Therefore, there was no binding contract.

Hint 27

What was the issue and judgement of the case?

Front 28

Is knowledge of an offer a necessary element for acceptance to occur?

Back 28

Yes. An acceptance must be made in reliance on theoffer. An offer cannot be accepted unless the acceptoris aware of its existence and its terms. The ‘reward’ cases refer to this.

Front 29

Other factors for acceptance?

Back 29

Acceptance must be clear and unconditional.

Front 30

Repora Stores v Treloar

Back 30

Treloar leased a property to Repora Stores.Lease contained an option to purchase on certain terms. Treloar purported to exercise the option but, inerror, stipulated for settlement to be on a different date from that in theoption.

Hint 30

What are the facts of this case?

Front 31

Repora Stores v Treloar

Back 31

Issue - Did the error cause the contract to be changed? Court found you cannot change important dates such as settlement dates. If a party incorporates a new term, it may amount to a counter offer.

Hint 31

What were the issues and decisions of this case?

Front 32

Gulf Corporation Ltd v Gulf harbour investments ltd [2006] 1 NZLR 21

Back 32

Counter offer found, although it was on a minorterm. Counter offer should only be used if it is on materialmajor facts.The case attracted criticism byMcLauchlan.

Hint 32

What was the legal principle of this case?

Front 33

What is a cross offer?

Back 33

Two offers but no acceptance.When parties put forward identical offers to one another at the same time.

Front 34

What is a counter offer?

Back 34

A counter offer is where the offeree makes another offer in relation to the previous offer made by the offeror. It is up to the original offeror to accept it's terms and conditions.

Front 35

Hyde v Wrench

Back 35

Wrench – 6th June offered to sellestate land for 1000 pounds.

Hyde – Counter offered to buy the land for 950pounds. Wrench 27th June rejected Hyde’scounter offer.

Hyde – 29th June wanted to accept theoriginal offer to buy for 1000 pounds.

Hint 35

What were the facts of the case?

Front 36

Hyde v Wrench

Back 36

Held – No contract existed. The counter offer made by Hyde terminated (killed) the original offer made by Hyde.

Hint 36

What did the court find?

Front 37

Butler v Machine Tool Co. v Ex – Cell – O Corporation [1979] 1 All ER 965

Back 37

poo