formation of contract

Question 1

for contract to be formed what must both parties agree on for the sale of goods/land

Answer 1

○ The goods or land
That a price is to be paid

Question 2

essential terms for property or objects

Answer 2

needs precise identification/description

Question 3

essential terms for a lease

Answer 3

○ The property
○ The rent
○ The lease duration
Possibly others (e.g., rent review, purchase option)

Question 4

case; precise identification

Answer 4

• Mr. Bogie, trading as Oakbank Services, claimed that he had entered into a contract to purchase timber from the Forestry Commission.
• They had engaged in negotiations and correspondence, but no formal contract was signed.
• Bogie argued that there was a binding contract based on their communications.
• The Forestry Commission disagreed, saying no agreement was concluded because essential terms were missing, particularly the identification of the subject matter (the timber).
• Essential terms werent agreed, so no contract made

Question 5

things that don’t qualify as a offer (9)

Answer 5

1. A unilateral promise (remember – no acceptance needed here).
2. Replies to a request for information or an enquiry as to willingness to sell
3. Party recapping its negotiating position
4. Invitations to Treat (ITT) – invite offers, don’t make them.
5. Shop window displays
   (Fisher v Bell)
6. Items on supermarket shelves
   (Pharmaceutical Society v Boots)
7. Auctions – the auctioneer invites bids.
8. Requests for tenders – asking others to offer.
9. Advertisements (usually)
   (Fenwick v Macdonald Fraser)

Question 6

case; invitations to treat

Answer 6

fisher v bella
a man named Fisher sued Bell, who owned a shop where a flick knife (a type of knife) was displayed with a price tag in the shop window.

Question 7

case; items on supermarket shelves

Answer 7

pharmaceutical society v boots 1953
the Pharmaceutical Society sued Boots, arguing that they were violating the law by allowing customers to select medicines from the shelves and take them to the checkout counter without a registered pharmacist present

Question 8

case; offeree must do or say something to communicate they have accepted the offer

Answer 8

Sabre Leasing Ltd v Copeland 1999
Mr. Copeland leased a vehicle from Sabre Leasing Ltd.
* The lease agreement allowed the vehicle to be returned early, but only with both parties’ agreement.
* Mr. Copeland tried to return the vehicle early, claiming he had the right to do so.
* Sabre Leasing refused to accept the return and sued for payment for the remainder of the lease period.
* The court found in favour of Sabre Leasing Ltd.
It ruled that the early return clause required mutual agreement — it was not an automatic right.

Question 9

postal rule

Answer 9

contract is formed when the acceptance is posted, not when received

Question 10

case; postal rule

Answer 10

Jacobsen Sons v Underwood (1894)Jacobsen Sons sent an offer to Underwood through the post, and Underwood accepted the offer by posting a letter of acceptance. However, the issue arose when Underwood later attempted to argue that the contract had not been formed because he had sent his acceptance after receiving information from a third party that might have led him to change his mind.

Question 11

what does the postal rule not apply to

Answer 11

Only applies to acceptances, not to:
* Offers
* Counter-offers
Withdrawals of offers