Formation-Agreement

Question 1

Smith v Hughes

Answer 1

Consent, intention to bind, consent to be decided objectively (based on external evidence)

Question 2

Centrovincial Estates v Merchant Investors

Answer 2

If there’s a genuine mistake between offer and acceptance, then a party should be allowed to get out of the contract. You judge a mistake through external evidence.

Question 3

Storer v MCC, Gibson v MCC

Answer 3

For a conclusive agreement to be reached, you need two things: a legal offer and a legal acceptance. It becomes legal when intention to bind is found. (Before an offer comes invitation to offer.)

Question 4

Harvey v Facey

Answer 4

Supply of information can be a valid offer if intention to bind is found.

Question 5

Partridge v Crittenden

Answer 5

Advertisements are not generally offers, they are invitations to offer because you cannot have a legally binding contract with everyone, or the general public. There needs to be specifics first and it should be pushed to the last possible point.

Question 6

Carlill v Carbolic Smoke Ball Company

Answer 6

Advertisement can become an offer if intention to bind is found. The acceptance can be the performance.

Question 7

Great Peace Shipping Ltd v Tsavliris, Bell v Lever brothers

Answer 7

Misrepresentation negates agreement if it is a statement of fact that is false and made with the intention to induce someone into a contract.
Unilateral mistake negates agreement if it’s a mistake and a party was induced.
Bilateral mistake negates agreement if it’s a fundamental difference that makes a contract impossible to perform and relates to the subject matter of the contract and not quality.

Question 8

Other Principle #1

Answer 8

If you have three rights in relation to anything, you own it: use it, prevent other from using it, destroy it or transfer it.

Question 9

Other Principle #2

Answer 9

Generally, an offer needs to be communicated but there are three exceptions to the rule: universal, postal, and waiver. In all three cases the requirement of communication is waived.

Question 10

Other Principle #3

Answer 10

Three things about acceptance: intention to bind made in reply, acceptance must mirror the terms of the offer, nature of acceptance will depend on the nature of the offer.

Question 11

Other Principle #4

Answer 11

Revocation of offer can happen if stated or becomes unreasonable.

Question 12

Other Principle #5

Answer 12

There exists voidable contract for mistake, misrepresentation, undue influence or duress.