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Law Paper 3 > Formation Of Contract > Flashcards

Formation Of Contract Flashcards

1
Q

Whats a unilateral contract

A

Only one of the two parties has an obligation to fulfil

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2
Q

Whats a bilateral contract

A

Both parties have an obligation to fulfil

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3
Q

What is an offer

A

A statement of terms upon which the person making the offer is willing to enter the contract

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4
Q

Whats an offeree

A

Person who the offer is made to

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5
Q

Whos the offeror

A

Person who makes the offer

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6
Q

The words of the offer must be certaib

A

Words and phrases such as might be prepared to or may be able to are uncertain
If words are uncertain this is not an offer

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7
Q

What is the case for words must be certain

A

Gibson v MCC

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8
Q

Who can make an offer

A

Anyone including individuals, businesses, notice or machine

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9
Q

What is the case for offer made by machine

A

Thornton v Shoe Lane Parking

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10
Q

How long does an offer last

A

Offers can only be accepted whilst open
Offer is open once communicated by the offeror
In some contracts time the offer is open will be specified if not courts decide

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11
Q

Whats the case for how long an offer lasts

A

Taylor v Laird

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12
Q

What is the case for courts looking at the timing on a case by case basis

A

Stevenson v McLean

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13
Q

An offer or invitation to treat

A

Offers can be accepted
ITT cannot be accepted
ITT is an indication that the person is willing to negotiate a contract
ITT inviting people to make you an offer

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14
Q

Adverts

A

ITT

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15
Q

Case for adverts

A

Partridge v Crittenden

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16
Q

Adverts can be an offer if

A

The words clearly state an offer is being made

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17
Q

What is the case for when an advert was an offer

A

Carlill v Carbolic Smokeball Co

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18
Q

Shop window displays/ shop shelfs

A

ITT- sellers are not obliged to sell items
- alcohol
- medication

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19
Q

What is the case for shop window displays

A

Fisher v Bell

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20
Q

Auctions

A

ITT

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21
Q

Whats the case for auctions

A

BCA v Wright

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22
Q

Request for further information

A

not an offer this is an enquiry

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23
Q

Whats the case for request for further info

A

Harvey V Facey

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24
Q

How can an offer end

A

Revocation - withdraw at any time before acceptance (Dickinson v Dodds)
Rejection- if offer is rejected it will end (Stevenson v McLean)
Lapse of time- if the offer has a time limit
Death

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25
Q

Acceptance

A

Confirms that the terms of the offer are agreed
Once an offer is accepted there is a binding contract although there has to be consideration and itclr

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26
Q

Acceptance must be

A

Positive, unqualified
Communicated to the offeror
Yes but yes if is not acceptance

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27
Q

How is an offer accepted

A

Any form
Not silence
Offeror must be aware for it to be valid

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28
Q

Whats the case for silence is not acceptance

A

Felthouse v Bindley

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29
Q

Case for you can specify how communication is to be communicated

A

Yates v Pulleyn

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30
Q

What are mandatory instructions

A

Instructions the court decide are non negotiable
If these are not followed
Theres no contract

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31
Q

What are directory instructions

A

Instructions the court decide are not fundamental
If these are not followed there can still be a valid contract

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32
Q

When does acceptance take place

A

When communicated to the offeror

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33
Q

Acceptance by conduct

A

Valid acceptance

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34
Q

Whats the case for acceptance by conduct

A

Carlill v Carbolic Smokeball Co

35
Q

Acceptance by post

A

Postal rules are followed
Only apply to letters of acceptance

36
Q

What case was the postal rules established

A

Adams v Lindsell

37
Q

What are the postal rules

A
  1. Post must be the usual/ expected means of communication
  2. Letter must be properly addressed and stamped
  3. Offeree must be able to prove that the letter has been posted
38
Q

Electronic methods of communication

A

When the offeror is aware
During office hours

39
Q

Case for electronic methods of communication

A

Thomas v BPE solicitors

40
Q

Consideration

A

Means that both parties must give something

41
Q

What case defined consideration

A

Currie v Misa
‘Some right, interest, profit or benefit’ which is given to one party

42
Q

Consideration must be sufficient not adequate

A

Ensure both parties exchanged something of value
Consideration must be real
Courts will not intervene if one party made a bad bargain

43
Q

Case for consideration must be sufficient not adequate

A

Chappel v Nestlé

44
Q

Past consideration

A

Not valid consideration
No value if it occurred before the agreement

45
Q

Case for past consideration

A

Re McArdle

46
Q

Exceptions under past consideration

A

Implied promise
Important matter

47
Q

Case for implied promise

A

Re Caseys Patent

48
Q

Case for important

A

Lampleigh v Braithwaite

49
Q

Performing a pre existing duty

A

Not valid consideration

50
Q

Case for pre existing duty

A

Stilk v Myrick

51
Q

What are the exceptions for pre existing duty

A

Extra element
Other party avoids detriment

52
Q

Case for extra element

A

Hartley v Ponsonby

53
Q

Case for extra element

A

Williams v Roffey

54
Q

Intention to create legal relations

A

Can be express or implied

55
Q

Presumption in business agreements

A

There is ITCLR

56
Q

Rebuttal in business agreements

A

No ITCLR

57
Q

Presumption in social agreements

A

No ITCLR

58
Q

Rebuttal in social agreements

A

ITCLR

59
Q

Business or social agreement?

A

Where it is unclear the burden of proof lies with the claimant to prove ITCLR

60
Q

Business agreements

A

Presumed to be legally binding
Can be rebutted

61
Q

Binding in honour only

A

Not contractually enforceable

62
Q

Case for binding in honour

A

Jones v Vernons Pools

63
Q

Free gift/ prize

A

Can be legally binding

64
Q

Case for free prize

A

McGowan v Radio Buxton

65
Q

Letter of comfort

A

Not usually legally binding

66
Q

Case for letter of comfort

A

Kleinwort Benson Ltd v MMC

67
Q

Social agreements

A

Presumed to be non legally binding
Can be rebutted

68
Q

Cases for spouses

A

Balfour v Balfour- still married no ITCLR
Merritt v Merritt- seperated ITCLR

69
Q

Family agreements

A

Court has to assess whether this is social or one with legal intent

70
Q

Case for family agreements

A

Jones v Padvatton

71
Q

Lottery syndicates

A

Money paid likely to be a business

72
Q

Case for lottery syndicates

A

Simpkins v Pays

73
Q

Financial security at risk

A

Put own financial security at risk must have intended to be legally binding

74
Q

Case for financial security

A

Parker v Clarke

75
Q

Privity of contract original rule

A

Only those party to a contract are bound by it and can benefit

76
Q

What case was the concept of privitit set out in

A

Dunlop v Selfridge

77
Q

Exceptions to rule of privity

A

Collateral contract
Agency
Restrictive covenants
Statutory exceptions

78
Q

What are collateral contracts

A

Agreement which runs alongside main agreement

79
Q

Case for collateral contracts

A

Shanklin Pier v Detel

80
Q

Agency

A

Agent permitted to make a contract om behalf of another

81
Q

Restrictive covenant

A

Seller and purchaser can form an agreement regarding what can be done on land

82
Q

Case for restrictive covenant

A

Tulk v Moxhay

83
Q

Statutory exceptions

A

CRPTA 1999 modified rule of privity
Allows a third party to sue if
Contract states third party has rights S1(1)(a)
Attempt to confer a benefit to third party s1(1)(b)
Act wont apply if it appears parties did not intend 3rd contract to have rights
3rd party must be expressly identified

Law Paper 3 (7 decks)

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