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23 Cards in this Set

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Statement of the terms upon which the person making the offer is willing to enter a contract: it can be verbal or written (offeror, offeree)

Carlill v Carbolic smoke ball co=Terms and acceptance was clear, intent to create a contract was shown by bank deposit

Biggs v Boyd Gibbons="quick sale i will accept £26000", clear it was an offer, because the terms were so clear

Chapelton v Barry UDC=Chairs not an ITT but an offer, accepting=sitting down

Invitation to Treat

Not an offer! Simply an indication of willingness to negotiate.

Fisher v Bell=Knives in shop window; displays are invitations to treat, displays encourage offers

Pharmaceutical society v Boots the chemists= Self service counter, displays or ITT which encourage customers to take to the counter to make an offer

Partridge v Crittenden=Wild chickens advertised in newspaper-ITT, to encourage negotiations to begin at the farm

Communication of Offers

Taylor=Cpt resigned during voyage, stayed on as consultant;no clear communication of offer to owner (offer must be communicated to offeree)

Fry=Fry owed £100,000 sent cheque for fraction of that (only to be cashed as full settlement). Letter never read, Offeree must know of the offer

Ending an Offer (Termination)


2)Withdrawal=Roultledge-G made offer for house (open for 6 weeks), withdrew it after 2, R tried to accept it after 2 but couldn't;offer can be withdrawn at any time before acceptance

3)Counter-offer=Hyde v Wrench-D offered to sell farm for £1000, C offered £950, it was declined. C tried to buy it at (original) £1000 but the counter-offer had terminated it

4)Lapse of Time=Ramsgate-D offerred to purchase shares 6 months later value fell. Offer was terminated after a reasonable time.


Communication of Acceptance

Conduct is needed, (Silence is not enough Felthouse=heard nothing further, horse sold)

Acceptance by post=Acceptance takes place when the letter is posted not when recieved (Adams=D sold wool to another before letter of acceptance arrived)

Electronic Acceptance=Entores-Takes place when message is received not sent


Each party to a contract must give something of value to the other

Executed=Promises have been carried out

Executory=Promises yet to be carried out

Consideration must have some value but need not be equal

Consideration must have some value, even if it's small;Nestle=Music records for 3 wrappers
Consideration must not be in the past

Consideration must come after the agreement, rather than something that has already been done;McArdle=Widow of 4 sons left house to sons. One son was married and his wife paid for improvements on the house, other sons agreed to repay her once house for inherited, they didn't-Consideration was in the past no contract to repay wife.

There is an exception if it was understood that along that work done was to be paid for.

Consideration must move from the promise

The person to whom the promise was made must also give consideration

Tweddle=Two fathers agreed to give engaged couple money, both fathers died before making payment. Tweddle claimed against wife's fathers estate. Claim failed because Tweddle had offered no consideration

Performing an existing duty is not good consideration

Stilk=2 out of 12 crew deserted ship, cpt offered extra money to crew if they sailed home. He didn't pay. Sailors already bound to sail home so cpt didn't have to pay

Intention To Create Legal Relations


ITCLR='Each party must intend the agreement to be legally binding'

Domestic/Social=not legally binding-as they don't expect to create legal relations (Balfour v Balfour)=H promised to pay monthly allowance for wife to travel abroad, H didn't keep up with payments, causing marriage to break down. W sued H, though couldn't because agreement was not 'legally binding'

The inclusion of non-family member usually means a contract did exist

Intention To Create Legal Relations

Business and Commercial Agreements

Presumed to be 'legally binding'

Presumption can be rebutted if the agreement makes some clear statement to that effect

Jones=Pool coupons said 'binding in honor only'

A promise to provide free gift is legally binding as its purpose was to attract interest

McGowan=Radio station offered car, winner got toy car

Breach of a Contract

Actual Breach-By a poor/non-performance

Anticipatory Breach-Party states or shows by conduct that there will not be performance of the contract (breach before the performance is due)-They can sue immediatley (Hochetser), wait till the performance date passes and sue for actual breach. If the party is committed to waiting until the date of full performance s/he cannot change their mind (Avery)

Breach of a Contract

Terms Broken

Warranty-Breach of a minor term-Can claim for damages (Bettini)-Missed 2 rehearsals; went to everything else including performance. Only cause inconvenience, promoters don't lose £

Condition-Breach of an important term-Gives the right to terminate the agreement-Poussard= Opera singer made contract to sing for 6 weeks, didn't show up for one and was replaced-Can replace singer without paying compensation

Remedies for Breach of Conduct

Repudiation-(available to breach of condition)= any goods or money paid under contract must be returned. Innocent party can claim damages

Damages-(available to all kinds of breaches)= Liquidated damages-Agreed prior

UnLiquidated damages-Agreed in court


The breach must be the main cause of the claimants loss:but for D's breach of the contract the claimant would not have suffered a loss. Even if party may not be soley responsible they may still be liable-(Stansbie)-Decorator, failed to lock premises, thief stole, D still liable

Remoteness of Damages

Test whether the losses are recoverable- 'reasonable contemplation' (Hadley)-New mill shaft was late delivered, meaning mill was out of action for several days, D not liable for lost profit as they didn't know mill would be idle

(a)Direct or normal losses-(Heron)=Sugar went down in price after being late, D liable

(b)Indirect or Abnormal losses (Victoria laundry) Late boiler delivery meant loss of profit and important government contract, D liable for normal losses not gov contract

Mitigating Loss

Claimant must do their best to keep loss to minimum (Wiseman)-Airline stopped C boarding flight, it was 12 days before he could return to England- Could not claim for private jet, but could for living costs in hotel. Claimant can not cover losses which could've been avoided

Loss of Bargain

Loss of Profit

Difference between price paid under contract and the actual value of the non-delivered goods

A business may claim for lost profit where a broken contract affects earning due to a late delivery.


Small claims-Under £10,000 County court

Fast Track- £10,000-£25,000 County Court , some complexity, trial in one day

Multi-Track-Over £25,000 County Court or High court, complex cases

Burden of Proof

Obligation on a party to establish facts to prove their case (To prove there was a contract between the two parties)

Standard of Proof

The required degreee of certainty in order to prove their case 'the balance of probabilities'.

Claimant has to show that it's 'more likely than not'

Contract Law case

1)Possible to be settled without the need to go to court 'dispute resolution'

2)Most cases are started in county court and use the money claim online procedure

3)Claim form is filled out; including the claim and it's value, claimant has to pay a court fee

4)D can pay up immediately or defend in court, if so D must send a form of acknowledgment back to the court within 14 days and then has another 14 days to send a full defence. D may also make a counter-claim

5)Court sets date for trial