Formation of Contract Law Flashcards
What Is offer?
An offer has been described as an unconditional statement of a person’s intention to
be bound by the terms of the offer made and thus the intention to contract with the
other person.
Invitation to Treat
An invitation to
a party to make
an offer to buy as
distinct from an
offer
Pharmaceutical Society of GB v Boots Cash Chemists - Goods displayed on self 1953
Boots had a self-service system where customers could select items from shelves and pay for them at the till. Some medicines required a registered pharmacist. The Pharmaceutical Society sued Boots, claiming that a sale happened when customers placed items in their baskets. But the Court of Appeal disagreed, stating that the sale only occurred when customers offered to purchase the goods at the till. No law was broken.
- Leftkowitz v Great Minneapolis Surplus Stores (1957):
A company advertised a sale in a Minneapolis newspaper for two mink scarves and a stole, each priced at $1. Mr. Leftkowitz went to the store and demanded the items for $1 but was refused due to a ‘house rule’ that the offer was only available for women. Mr. Leftkowitz sued the company for damages. The court ruled that the circumstances constituted an offer to sell instead of invitation to treat and Mr. Leftkowitz had every right to accept it.
What shifts an ITT to an Offer?
from ITT to constitute an offer to sell if the offer is clear, definite, and explicit, and it leaves nothing open for negotiation
What is Unilateral Contract?
The first party promises an action in return for a specific act. The second party do not need to promise anything. If they perform it it means the contract has been formed.
5 features of a contract?
Offer Acceptance Consideration
ICL Certainty of terms
Carlil VS carbolic ? Date of year
- Advertise in ball to use for 2 weeks and whoever catch influenza will get 100 pound. Carlil did it but company refused to pay stating its invitation to treat. The court decided it is an contract - unilateral.
Payne V cave
1789 Mr Cave made the highest bid for goods at an auction held by Mr Payne. However, before the fall of the auctioneer’s hammer, Cave withdrew his bid. The question for the Court was whether Cave possessed the right to withdraw a bid at an auction.
Held: there was no contract. The auctioneer’s request for bids is an invitation to treat. Therefore, a bid at an auction is merely an offer which may be withdrawn by the bidder at any time until acceptance.
Harvey v Facey - Case and Year
- Facey couple was asked by Harvey to sell the bumper hall pen. Facey replied 900 pound lowest price. Harvey says they agreed to the price. Facey did not reply. No contract was established
A request for info is an offer capable of acceptance. True or False?
False
Storer V manchester CC
- The Council had sent the claimant information regarding the possibility of tenants purchasing their Council-owned property. Storer completed the application form and the Council replied with a letter requesting that the applicant sign an enclosed agreement for the sale of the property. The Council would return the agreement as signed. Storer completed and returned the form but the Council did not reciprocate as promised before the control of the Council changed political parties. Contract was formed as intent was firm when storer send application form
An offer can be made to one person but it can also be
made to the whole world . True or false?
True
An unilateral contract requires no acceptance rather than performance, T/F
True
Hyde V Wrench (offer revocation)
1840 . The defendant offers to sell land for £1,000. The claimant responds with acceptance of the offer for £950. This offer of £950 was rejected. The claimant then attempted to accept the original offer by agreeing to £1,000. The defendant refused to proceed with the sale.
