Formation Flashcards
(22 cards)
Define offer
Offer is a statement of all of the terms of a contract that you are willing to be bound by. It must be clear, certain and communicated.
Offer case
Gibson v Manchester City Council
Counter offer
Rejects original offer and creates new offer (Hyde v Wrench)
Revocation
Offer can be withdrawn at any time before acceptance, must be communicated (Dickinson v Dodds)
Rejection
Must be a clear rejection and must be communicated (Stevenson v McClean)
Lapse of time
If the offer has a specific time limit and runs out then offer will end, otherwise contract will end after a reasonable amount of time (Ramsgate v Victoria Hotel)
Death
Contract only ends when offeree is made aware of the death of the offeror
Define ITT
An invitation to treat is not an offer. If simply invites the other party to make an offer which can then be accepted or rejected
Three types of ITT
Adverts - will be an offer if made to a specific group of people (Partirdge v Crittenden)
Items on display - Fisher v Bell
Auctions - BCA v Wright
Request for info
Request for information and response is not an offer (Harvey v Facey)
Define acceptance
Acceptance is the agreement to all the terms of an offer and becomes valid as son as it is communicated. Acceptance can take place in any form except silence (Felthouse v Bindley), but must be done by positive conduct (Carlil v Carbolic Smokeball).
Postal Rule
A letter of acceptance takes effect at the moment it is sent (Adam’s v Lindsall)
Only applies if the post -
Is the expected method of communication
Is correctly stamped and addressed
The claimant can prove the letter was posted
Electronic and other forms of acceptance
Acceptance takes place once received (Entores v Miles Far East)
If communication arrives outside of office hours, it is communicated at the start of the next working day
Consideration definition
Consideration is the ‘thing’ of value that each party puts into a contract. This must be sufficient and real (White v Bluett) but need not be adequate (Chappel v Nestle). This is to gain a benefit or avoid detriment (Currie v Misa).
The parties that give consideration will be privy to the contract and therefore have rights under it (Tweddle v Atkinson)
Performance of existing contractual duty
- if you only do what you were bound to then this is not good consideration (Stilk v Myerick)
There are two exceptions - if you do something extra this is good consideration (Hartley v Ponsonby)
- if the party gains an extra benefit this is good consideration (Williams v Roffey)
Past consideration
- past consideration is not good consideration (ReMcardle)
There is one exception - where there is an implied promise to pay before consideration is done, then past consideration is enforceable (Lampleigh v Braithewaite)
Part payment of a debt
This is not good consideration
Ruling from Pinnel’s case - if you agree to only part of the debt owed to you, you can still claim the rest
There are three exceptions -
Accepting something other than money
Paying smaller amount at an earlier date
Repay part of debt at a different location
Probity of a contract
Only those who give consideration have rights under the contract (Tweddle v Atkinson)
There is one exception -
Contracts Rights of a Third Party Act 1999 - a person who is not a party to a contract can enforce the contract if they are named or gains a benefit from it
Define ITCLR
Both parties must intend to create legal relations. This means that they both intended to be legally bound.
There are two types of agreement - social/domestic and business/commercial agreements
Social and domestic agreements
This is where the starting presumption is that the parties did not intend to be legally bound (Merrit v Merrit) unless proven otherwise (Balfour v Balfour)
