Week 2&3: Formation Of Contract Flashcards
What is a contract?
An agreement between two parties having the capacity to make it. Performance can’t be impossible or illegal.
What is the objective interpretation?
Commercial contracts are made according to what people say
As per Muirhead & Turnbull v Dickson
What is Mathieson Gee v Quigley?
Mathiesons statement was not an offer and therefore Q could not accept. About silt
What are the five essential terms of contract?
- Subject matter
- Price
- Nature
- Quality
- Identity
Why must a contract have the five essentials?
Otherwise unenforceable for lack of certainty.
Contradicted in Avintair v Ryder
Does there need to be intention to create legal relations?
Yes, as per
W S Karoulias v Drambuie
What’s the difference between offers and pre-contractual statements?
Invitations to treat are requests for offers and therefore cannot be accepted.
As per Fisher v Bell, held not guilty
What are adverts usually viewed as?
Invitations to treat even though they have price confirmed
As per Partridge v Crittenden
What about tenders?
Language used very important, case by case situation
What is special about Carlill v Carbolic Smokeball company?
Given offer, no need for communicated acceptance. Reward went beyond price and subject matter.
When can an offer be withdrawn
Up to the point where the offeree makes an unqualified acceptance.
See postal rule
When does an offer create legal obligations.
Once it has been accepted, by conduct or unqualified acceptance from an offeree back to the offeror.
What is an unqualified acceptance?
Acceptance that adds no extra terms
What is a qualified acceptance?
An acceptance where stipulations are stated. Not really an acceptance at all but a counter offer
As per wolf v wolf, only one offer can stand at a time, so counter offer makes first offer fall
What other ways can an offer be terminated?
After effluxion of time
Death of either party
