Cases

Question 1

Hyde v Wrench (1840)

Answer 1

A counter-offer is an offer made by the offeree to the original offeror, in this case, the first offer comes to an end and now new offer is valid, it has the same effect as a rejection and ends the original offer. The offeree cannot go back on the rejection unless the other party agrees.

Question 2

Stilk v Myrick (1809)

Answer 2

Performance of an existing contractual duty is not normally good consideration for a promise of extra payment, because no new obligation is undertaken by the promisee in return.

Question 3

Hartley v Ponsonby (1857)

Answer 3

Where a party performs or agrees to perform additional obligations in exchange, a promise of extra payment will be enforceable.

Question 4

Williams v Roffey Bros (1991)

Answer 4

The practical benefit conferred by performance may be good consideration for a promise of extra payment.

Question 5

Jones v Padavatton (1969)

Answer 5

In social agreements, there is a presumption that the parties do not intend to create legal relations.

Question 6

Merritt v Merritt (1979)

Answer 6

Rebutting presumption in social agreements - this may be rebutted where the parties are separating or separated.

Question 7

Simpkins v Pays (1955)

Answer 7

Rebutting presumption in social agreements - where there is a mutuality in the arrangements such that the intention is to share benefits, or a party is at a disadvantage.

Question 8

Poussard v Spiers & Pond (1876)

Answer 8

A condition is a major term in the contract that goes to the roots of the contract.

Question 9

Bettini v Gye (1876)

Answer 9

A warranty is a term which is not of central importance to the contract.

Question 10

Derry v Peek (1889)

Answer 10

A misrepresentation is fraudulent where it is made knowing it to be false, or made without belief in its truth, or made with reckless carelessness as to its truth.

Question 11

Robinson v Harman (1848)

Answer 11

Damages are monetary compensation intended to put the innocent party in the position they would have been in had the contract been performed.

Question 12

Carlill v Carbolic Smoke Ball Co (1893)

Answer 12

An offer is an expression of willingness to be bound on certain terms. It is capable of being accepted.

Question 13

Gibson v Manchester City Council (1979)

Answer 13

An invitation to treat is merely an invitation for making an offer or to open a negotiation.

Question 14

Byrne v Van Tienhoven (1880)

Answer 14

Revocation of an offer must be communicated to the offeree.

Question 15

Dickinson v Dodds (1876)

Answer 15

Revocation may be communicated to the offeree by a reliable third party.

Question 16

Ramsgate Victoria Hotel v Montefiore (1866)

Answer 16

An offer will lapse after a reasonable time.

Question 17

Entores v Miles Far East Crop (1855)

Answer 17

Acceptance must be communicated to the offeror to be effective.

Question 18

Felthouse v Bindley (1862)

Answer 18

The offeror cannot, be stipulation, treat the silence of the offeree as an acceptance of the offer.

Question 19

Hollier v Rambler Motors (1972)

Answer 19

The term may be incorporated into the contract by course of dealing, both frequent and consistent.

Question 20

Edmonds v Lawson (2000)

Answer 20

The presumption in commercial agreements is that an agreement made in the course of business is presumed to be legally binding.

Question 21

Nottingham Patent Brick & Tile Co v Butler (1886)

Answer 21

A half-truth is a statement which is true, but which is to mislead by giving a false impression to the other party, it can give rise to misrepresentation.

Question 22

Cutter v Powell (1795)

Answer 22

The entire performance rule or complete performance rule, provides that a party’s performance must be complete and exact before they can demand performance of the other party.

Question 23

Hoenig v Isaacs (1952)

Answer 23

An acceptance of partial performance, the substantial performance of a contractual obligation.

Question 24

Planché v Colburn (1831)

Answer 24

Prevention of performance.

Question 25

Startup v Macdonald (1843)

Answer 25

Tenders of performance.

Question 26

Taylor v Caldwell (1863)

Answer 26

Frustration of the contract occurs when, without the default of either party, an unforeseen event occurs, which frustrate the contract and make it impossible, illegal, or completely pointless to perform.

Question 27

Hadley v Baxendale (1854)

Answer 27

A loss which is not too remote is recoverable, a loss is not too remote if it arises naturally from the breach or is in the reasonable contemplation of the parties at the time the contract is made as the probable result of the breach.

Question 28

Victoria Laundry v Newman Industries (1949)

Answer 28

The rule was reframed in terms of the knowledge of the parties, based on their actual knowledge or their imputed knowledge.

Question 29

Scammell v Ouston (1941)

Answer 29

The terms of the offer must be sufficiently certain in order to give rise to enforceable contract if the offer is accepted.

Question 30

Adams v Lindsell (1818)

Answer 30

The Postal Rule says that where the acceptance letter is properly posted, stamped, and addressed, acceptance is treated as completed on the posting of the letter, not its delivery to the offeror.

Question 31

Jarvis v Swans Tours (1973)

Answer 31

Non-pecuniary loss – if the purpose of the contract was to provide for a pleasure or amenity.

Question 32

The Hongkong Fir (1962)

Answer 32

An innominate term is a term that cannot be classified at the time of formation as a condition or a warranty. The innocent party’s right to terminate for a breach depends upon whether the breach is sufficiently serious.

Question 33

Thomas v Thomas (1842)

Answer 33

Consideration must be sufficient, which means of a type recognised by law as of having value.

Question 34

Tweddle v Atkinson (1861) – [Dunlop v Selfridge (1915)]

Answer 34

Privity of contract – the general rule is that a person who is not a party to a contract cannot sue under the contract.

Question 35

The Moorcock (1889)

Answer 35

Business efficacy test – a term may be implied by the court on the facts under the business efficacy test.

Question 36

Shirlaw v Southern Foundries (1939)

Answer 36

Where the contract would lack business efficacy without the term, or under the officious bystander test.

Question 37

Currie v Misa (1875)

Answer 37

Consideration is a benefit to the promisee or a detriment to the promisor.

Question 38

Re McArdle (1951)

Answer 38

Past Consideration - the general rule is that past consideration is not good consideration where a promise is made after alleged consideration for it was given.

Question 39

With v O’Flanagan (1936)

Answer 39

A statement may be a misrepresentation if it becomes false before the contract is entered.