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Flashcards in Contract: key cases Deck (201)
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Gibson v Manchester City Council

An invitation to treat is a mere willingness to negotiate - not an offer (council house sale)


RTS Flexible Systems v Molkerei

The intentions of the contracting parties are assessed objectively (contract variation before signature)


Esso v Customs and Excise

An intention to create legal relations is necessary, and assumed in commercial cases (world cup coins)


Balfour v Balfour

An intention to create legal relations in necessary, and assumed not to exist in domestic cases (ill wife)


Partridge v Crittenden

Advertisements are mere invitations to treat (illegal birds)


Pharmaceutical Society v Boots

Displays of goods in shop windows are mere invitations to treat (taking product to till)


Blackpool v Blackpool Council

The recipient of bids must consider all of those which meet the given stipulations ('late' letter)


Spencer v Harding

Inviting others to bid for an item is merely an invitation to treat (no obligation to sell to highest bidder)


Barry v Davies

Auctions with reserve (a fixed minimum price) are invitations to treat, while those without are offers (analyser machines)


Carlill v Carbolic Smoke Ball Co

Exception to the rule that advertisements are mere invitations to treat - this one was understood as a unilateral offer to all the world (smoke sickness cure)


Stevenson v McQueen

Inquiries into details are not counter offers and do not kill off the offer (iron merchant)


Hyde v Wrench

Counter offers (including acceptances with qualifications) kill off the original offer (farm sale)


Clarke v Dunraven

A complex multi-lateral contract involves multiple contracting parties who may not be aware of each other (yacht crash)


Entores Ltd v Miles Far East Corp

The general rule is that an acceptance must be communicated by the offeree to the offeror (London to Amsterdam)


R v Clarke

The offeree must be aware of the offer to accept it (murder information reward)


Felthouse v Bindley

Silence cannot communicate acceptance (horse sale)


Eastbourne v Cooper

In commercial cases, a unilateral offer may be revoked even if the offeree has begun performance of the conditions (property sale)


Errington v Errington

In domestic cases, a unilateral offer may not be revoked if the offeree has begun performance of the conditions; waived requirement of acceptance (wife/daughter in-law house)


Adams v Lindsell

The postal rule: a letter of acceptance is effective as soon as it is sent (delayed wool acceptance)


Henthorn v Fraser

An exception to the postal rule is where it is unreasonable to accept the offer by post (withdrawal and acceptance overlap)


Holwell Securities v Hughes

An exception to the postal rule is where the offeror explicitly ousts it ('notice in writing')


Brogden v Metropolitan Railway Company

Acceptance of an offer can be communicated by conduct (coal delivery)


Manchester Diocesan Council for Education v Commercial and General Investments Ltd

Where the offeree accepts the offer by some means other than that specified by the offeror, this will be effective so long as it is not disadvantageous to the offeror (acceptance to surveyor)


Scammell v Ouston

A contract with vague terms is not binding (van trade)


May and Butcher v R

A contract where the price is not fixed is not binding (WWI goods)


British Steel v Cleveland

A quasi-contractual agreement is not binding (steel nodes)


Walford v Miles

An agreement to negotiate is not binding (sale of company)


Payne v Cave

An offer can be revoked any time before it is accepted (before hammer fell)


Bern v Van Tienhoven

The postal rule does not apply to letters of revocation (late revocation)


Dickinson v Dodds

A revocation must be communicated to the offeree, but not necessarily by the offeror (revocation by friend)