Bilateral Contract Law

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The problem question deals with aspects of contract law and more specifically with the creation of contracts ; then the certainty and obligation to create legal obligations and finally with problems in agreement process. In fact, Gordon has to provide major building work in his new commercial premises. Ritebuild Ltd offers to perform contract for a fixed price which was accepted by Gordon the 1st september. But Ritebuild sent an email the same day to change the original price. Gordon didn’t see it. Gordon come to the new if whether or not Ritebuild will be ready to work on time. Ritebuild answer yes only if Gordon agrees to pay the new price. Gordon agrees to pay the new price.
Gordon ask himself whether or not he is mandatory to pay the
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If there isn’t an offer there isn’t a contract. Gibson v Manchester City Council said that an offer shows willingness to be bound on specified terms.
Ritebuild Ltd propose to complete the works with a specific total fixed price. So it’s can’t be an invitation to treat because there is no will of negotiate, that’s why Ritebuild proposal is an offer.

1-2) bilateral or unilateral contract ?

A bilateral contract is the idea that one party promises something in exchange for a promise from another party. As the contract create obligations for the two parties, it is named bilateral. In this case ritebuild promise to do the work in exchange of a price.

1-3) Acceptance in Bilateral Contract

In bilateral contract the acceptance must be communicated to the offeree. So, in principle acceptance must be communicated to offeror and takes effect once they receive it, Entores v Miles Far East Corporation.
Nevertheless, there is a dispatch which is postal rule, Adams v Lindsell (1818). With the postal rule the acceptance become effective when posted. A contract is created by posting acceptance even if is acceptance is delayed by post, Household FireInsurance v
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Voidable means contract has effect until one party choose to avoid it. The is three types of duress which are to persons ; to goods ; and the last one which is the most important is economic duress.
Lord Goff in The Evia Luck set up two criteria for economic duress. First, the pressure may be characterised as illegitimate and secondly it has constituted a significant cause inducing the injured party to enter into the contract.
Illegitimate pressure is qualify abnormal commercial bargaining, Adam Opel GmbH v Mitras Automotive, which often appears by threat.
Then the illegitimate pressure must be a significant cause of person agreeing to modification of a contract meaning there must be a pressure which is ‘clinching or decisive’ in the reasoning of the injured party, Huyton SA v. Peter Cremer GmbH & Co.
An Economic duress ‘checklist ' has been provide in DSND Subsea Ltd v Petroleum Geo-Services ASA case’. This case bring 5
Was there a threatened breach of contract ? Yes, there a threatened of breach of contract which was an unlawful action. A threat to break a contract will normally be regarded as illegitimate

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