Contract 1 Flashcards
3 requirements for a contract
Agreement (with offer accepted)
Intention to create legal relations
Consideration
(AIC)
(Alice Is Cold)
Bilateral vs unilateral contract?
Bilateral = promise in return for a promise
(promise to pay u)
Unilateral = promise in return for an act
(e.g. lost pet) (aka “if” contracts)
(promise vs perform)
What constitutes a valid agreement?
Offer accepted
All material terms agreed
What is the difference between offer and invitation to treat?
Invitation to treat - inviting negotiation
(e.g. “would you be interested in buying?”)
Can’t be accepted.
When can an offer NOT be accepted?
Once terminated
Due to rejection, revocation or lapse of time
Revocation must be ____
Communicated
Requirements for acceptance to be valid?
- Unconditional
- Communicated by words or conduct (nod/wink fine)
What is the postal rule?
Letter of acceptance binding when posted
Offer and acceptance at an auction?
Bids = offers
Hammers = acceptance
When is acceptance / revocation communicated to businesses?
When reasonable to expect it to be read
businesses - during normal office hours
(the courts love WLB!)
Elements of an offer?
- Expression
(words/conduct basis contract) - Intention
(what reas person thought - e.g. sold 5k by accident but intended 6k) - Addressed
(to person who will accept)
Is there a limit to how many people a contract can be addressed to?
No - can be whole of world.
Are goods on display offer or invitation to treat?
Invitation to treat
(i.e. to select the goods and put in trolley - you can change mind/cashier can refuse to sell - no obligations)
Are advertisements an offer or invitation to treat?
Usually invitation to treat
Otherwise issue if run out stock
Unless:
- adverts of reward - eg find my dog
- sometimes if shows intention bind (unilateral)
“Without reserve” meaning?
No minimum price that auctioneer must sell something at
Damages for breach in auction?
Loss expectation
(if have to pay more elsewhere, diff between that and price would have paid)
When will a tender be an offer instead of invitation to treat? What type of contract will be formed
Specifically promised to accept lowest tender; or
Impliedly promised to consider
(e.g. if submit on time)
Unilateral
Who can communicate acceptance?
Offeree or authorised agent
Acceptance of offer for unilateral contract will always be in what form?
Conduct
Can silence amount to acceptance?
Only if coupled with conduct clearly signifying acceptance
eg wink
What is a counter-offer and effect of that?
Adds conditions to acceptance
Destroys original offer and cycle starts again
What is battle of forms?
Two companies want their standard Ts and Cs
Last shot - last to send without rejection
Requirements for postal rule to apply
- reasonable to post
- properly addressed, stamped and posted
- postal rule not excluded
(e.g. if specified how to accept)
If letter sent in post and postal rule DOESN’T apply, when is the offer made?
Received