Exam January 2023 Flashcards
(33 cards)
What is a contract?
A legally binding agreement which means that if broken, the wronged party may enforce the agreement through the courts.
What are the essentials to a legally binding contract?
Agreement
Certain
Consideration
Intention to create legal relations
What is a bilateral contract?
Each party takes an obligation, usually by promising the other something.
What is a unilateral contract?
Only one person assumes an obligation. E.g. £50 to anyone who finds my cat - no one is obliged to do it but I owe the money if they do.
How does the law of contract define an offer?
The person making the offer is willing to contract on the terms stated as soon as they are accepted by the person to whom the offer is addressed.
How can an offer be made?
In writing, by word of mouth or by conduct
What is the legal principle in the case White v Bluett (1853)?
The promise was too vague to be enforceable.
What is the legal principle in Pharmaceutical Society of GB v Boots Cash Chemists (1952)?
The shelf was an invitation to treat where as the offer was made when medicines were presented at the cash desk.
What is the legal principle in the case Harvey v Facey (1893)?
No contract as D was supplying information and therefore was not an offer.
What is the legal principle in Payne v Cave (1789)?
Auctioneers request for bids amount to an invitation. The offer is made by the bidder. The bid may be revoked anytime before acceptance.
What are the 2 types of tenders?
Definite offer - once accepted this leads to a legally binding contract
Standing offer - to supply goods or services as and when required. A new contract is formed each time an order is placed.
What is the legal principle in Harvela Ltd v Royal trust of Canada (1985)?
A bid/tender that makes reference to another offer is not an offer.
When does an offer come to an end?
It is accepted
It is rejected or a counter offer is made (Hyde v Wrench 1840)
The offer lapses through - time, death of an offeree or offeror before acceptance or failure of a condition.
It is revoked
What case says an offer can be revoked any time before acceptance?
Payne v Cave (1789)
What is the legal principle in Burne v Van Tienhoven (1880)?
Revocation is only effective when it is clearly communicated to the offeree before acceptance.
What is the legal principle in Dickinson v Dodds (1876)?
Revocation can be communicated through a reliable third party.
When can’t an offer be revoked for a unilateral contract?
Once the offeree has commenced performance
How does the law of contract define acceptance?
It’s a final expression of assent to the terms of an offer.
What case said that a party can only accept an offer if s/he has knowledge of it?
R v Clarke (1927)
What is the general rule for the communication of acceptance give a case?
Acceptance must be communicated by some positive act by a person who has authority to accept the offer. Silence will not normally be acceptance.
Felthouse v Bindley (1862)
Agreements are sometimes described as ‘subject to agreement’ what does this mean and give the case?
The parties do not intend to be bound until a formal written contract has been signed by both parties.
Chillington v Esche (1924)
When is a contract normally formed?
When an effective acceptance has been communicated to the offeror (the receipt rule).
When does is a contract formed for a unilateral contract?
Acceptance is by performance of the specified act
What is the postal rule?
Where acceptance is communicated by post. Acceptance is deemed to be complete when the letter of acceptance is properly posted and not when it is received.
