O/A Flashcards
(103 cards)
1
Q
What is the first principle to show the existence of a binding agreement?
A
that there must be consensus ad idem
2
Q
What are the two cases which explore whether parties must have consensus de idem?
A
Raffles and
Byrne
3
Q
What happened int eh case of Raffles
Consensus de idem
ralf would have made this mistake
A
The claimant believed that he contracted for the sale of cotton on the December ship Peerless, whereas the defendant believed they contracted for the October Peerless.
HELD:
If the court could find a common intention, the contract will be upheld but the court here could not determine which Peerless ship was intended in the contract. Mutual mistake was therefore operative and the contract was void
4
Q
The claimant believed that he contracted for the sale of cotton on the December ship Peerless, whereas the defendant believed they contracted for the October Peerless.
HELD:
If the court could find a common intention, the contract will be upheld but the court here could not determine which Peerless ship was intended in the contract. Mutual mistake was therefore operative and the contract was void
A
What happened int eh case of Raffles
Consensus de idem
5
Q
What happened in the case of Byrne
Consensus Ad Idem?
A
A letter was sent to Byrne offering to sell tinplates. Days later the offers changed their minds but this was not delivered to Byrne until after Byrne accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
6
Q
A letter was sent to X offering to sell tinplates. Days later the offers changed their minds but this was not delivered to X until after X accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
A
What happened in the case of Byrne
Consensus Ad Idem?
7
Q
Why was the case of Byrne decided the way it was despite the fact that the offeror wanted to revoke offer?
A
as consensus ad idem does Consensus ad idem does not refer to subjective intention and thus courts are not interested into the partiesthoughts; rather whether the reasonable man would say that the parties were in agreement.
8
Q
What did the case of Gibson establish?
A
that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
9
Q
What happened in the case of Gibson?
relating to that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
A
Having adopted a policy of selling houses the respondent applied to which the council stated it may be prepared to sell. before exchange of contracts there was a change in the control of council
HELD:
No specific performance as the invitation to treat was not a formal application to buy
10
Q
Having adopted a policy of selling houses the respondent applied to which the council stated it may be prepared to sell. before exchange of contracts there was a change in the control of council
HELD:
No specific performance as the invitation to treat was not a formal application to buy
A
What happened in the case of Gibson?
relating to that the terms ‘may be prepared to accept/ cannot be regarded as acceptance but rather an invitation to treat
11
Q
How did Treitel describe an offer?
A
as an expression of willingness to contract on specified terms which is to become binding as soon as it is accepted by the addressed person
12
Q
What case was the criteria of an offer considered in?
A
Carlil v Carbolic Smoke Ball
13
Q
In this case the appellant company designed smoke balls designed to prevent the flu and offered a £100 award to anyone who did contract flu after using it as instructed. The advertisement stated that £1,000 had been deposited into a named bank. In reliance of this the respondent purchased the smoke ball but
contracted flu anyways
HELD:
It was a valid offer which could be accepted by performing the recommended conduct
A
Carlil v Carbolic Smoke Ball
14
Q
Carlil v Carbolic Smoke Ball
Discuss
A
In this case the appellant company designed smoke balls designed to prevent the flu and offered a £100 award to anyone who did contract flu after using it as instructed. The advertisement stated that £1,000 had been deposited into a named bank. In reliance of this the respondent purchased the smoke ball but contracted flu anyways
HELD:
It was a valid offer which could be accepted by performing the recommended conduct
15
Q
Carlil v Carbolic Smoke Ball is also an example of a unilateral offer. What is a unilateral offer?
A
this is where the majority of the contractual obligation is placed upon the offerer
16
Q
What case establishes that revokation is impossible once performance has begun?
A
Errington v Errington
17
Q
Errington v Erringtonestablishes that revokation is impossible once performance has begun
discuss
A
A father promised that he would transfer the legal title to the property to his son and daughter if they paid off all mortgage payments. The father died after some repayments. Other family members tried to claim possession of the house.
HELD:
The contract was a unilateral offer since it involved an act in return for a promise. Once performance commenced the father’s promise could not be revoked but the promise would not be binding, per Lord Denning, if the act was left incomplete and unperformed
18
Q
How does Ashby note that revocation should be communicated.?
A
it must be done in the same/similar method
19
Q
Ashby notes that revocation should be communicated by the same or similar method
Shuey supports this
discuss
A
where the offer of a reward was made by public proclamaiton, it may be withdrawn through the same channel. The party must take the steps which a reasonable man would take.
20
Q
where the offer of a reward was made by public proclamaiton, it may be withdrawn through the same channel. The party must take the steps which a reasonable man would take.
A
Shuey
21
Q
Under bilateral contracts; who distinguishes an offer from an invitation to treat:
an offer is a pre-contractual definite promise where
as invitation to treat is a pre-contractual statement not intended to lead to acceptance but higher levels of negotiation?
A
Poole
22
Q
What are the 7 examples of an invitation to treat?
A
1) Advertisements, price lists
2) shop displays, show windows
3) websites
4) tenders
5) sale of land
6) auctions
7) letters of intent
23
Q
What is the supporting authority for advertisements?
A
Partridge v Crittenden
24
Q
he supporting authority for advertisements is Partridge v Crittendon
discuss
partridge in a pear tree
A
The defendant placed an advertisement in a magazine. He was prosecuted under the Protection of Birds Act for offering for sale wild birds
HELD:
The court held that the advertisement was an invitation to treat and not an offer; it was an expression of willingness to receive offers as a stating point to negotiations
25
The defendant placed an advertisement in a magazine. He was prosecuted under the Protection of Birds Act for offering for sale wild birds
HELD:
The court held that the advertisement was an invitation to treat and not an offer; it was an expression of willingness to receive offers as a stating point to negotiations
he supporting authority for advertisements is Partridge v Crittendon
discuss
26
What are the 2 exceptions to the rule that advertisements are not an offer but an invitation to treat?
1) if a reward is advertised for the performance of a specific act the advertisement will constitute a unilateral contract
- Carlil v Carbolic Smoke Ball
2) on the basis of certainty of terms such as 'highest bid gets it' or 'first come first served'
- Leftowitz
27
There are 2 exceptions to the rule that advertisements are not an offer but an invitation to treat?
2) There is potential to convert an invitation to treat on the basis of certainty of terms such as ‘highest bid gets it’ ‘first come first served’
-Leftowitz
discuss
the defendant refused to sell to the first to arrive to his first come first served advertisements as the house rule was that it could only ve sold to women
Could not do so due to specific language used
28
the defendant refused to sell to the first to arrive to his first come first served advertisements as the house rule was that it could only ve sold to women
Could not do sodue to specific language used
Leftowitz
29
What are the two supporting authorities that shop displays/windows are an invitation to treat?
- Fisher v Bell
| - Pharamceutical Society v Boots
30
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the first
Shopkeeper was prosecuted for displaying a flick knife for sale but it was found this was actually only an invitation to treat
31
Shopkeeper was prosecuted for displaying a flick knife for sale but it was found this was actually only an invitation to treat
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the first
32
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the second
Defendants were prosecuted on the basis of their self service counters under the Poisions Act. However it was held that the contract was only formed when goods were presented at the cash desk and whilst on the shelf they were merely an invitation to treat
33
Defendants were prosecuted on the basis of their self service counters under the Poisions Act. However it was held that the contract was only formed when goods were presented at the cash desk and whilst on the shelf they were merely an invitation to treat
the two supporting authorities that shop displays/windows are an invitation to treat are
- Fisher v Bell
- Pharamceutical Society v Boots
discuss the second
34
Why have websites been found to be a invitation to treat?
It is customers who make the offer, thus allowing the site provider to retain freedom of contract and allow it to avoid entering contracts with online buyers in excluded jurisdictions
35
How does the oxford dictionary define a tender?
as an offer to carry out work, supply goods or buy land, shares or another asset at a stated fixed price
36
What is the supporting authority for tenders being an invitation to treat
Spencer v Harding
37
the supporting authority for tenders being an invitation to treat is Spencer v Harding
Discuss
Spencer that is a hard sale
Spencer v Harding
The defendants advertised a sale by tender, advertising where the sale of goods could be viewed but no reserve was stated. The claimant submitted the highest tender but the defendant refused to sell him
HELD:
No obligation to sell as the advertisement amounted to an invitation to treat
38
The defendants advertised a sale by tender, advertising where the sale of goods could be viewed but no reserve was stated. The claimant submitted the highest tender but the defendant refused to sell him
HELD:
No obligation to sell as the advertisement amounted to an invitation to treat
the supporting authority for tenders being an invitation to treat is Spencer v Harding
Discuss
Spencer that is a hard sale
39
What are the 2 exceptions to the fact that tenders are an invitation to treat?
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
40
the 2 exceptions to the fact that tenders are an invitation to treat
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
discuss the first
In this case it was held that referential bids are invalid in a fixed bidding sale
£100,000 in excess
41
the 2 exceptions to the fact that tenders are an invitation to treat
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
discuss the second
The tender invitation had a clause stating they would not be accepted if they missed the time and date deadline stipulated. The claimant’s tender was not conceded even though it was posted at 11am but council staff failed to clear it by 12pm.
HELD:
Courts found that the invitation to submit a tender was usually no more than an offer to recieve bids, but in the circumstance, examining the behaviour of the parties created clear intention to create a contract
42
The tender invitation had a clause stating they would not be accepted if they missed the time and date deadline stipulated. The claimant’s tender was not conceded even though it was posted at 11am but council staff failed to clear it by 12pm.
HELD:
Courts found that the invitation to submit a tender was usually no more than an offer to recieve bids, but in the circumstance, examining the behaviour of the parties created clear intention to create a contract
the 2 exceptions to the fact that tenders are an invitation to treat
1) if the tender contains an express undertaking to accept highest/lowest bid
- Harvela
2) If the tender contains an express undertaking to accept only those bids which conform to the bid conditions, treated as an offer
- blackpool
discuss the second
43
What are the 2 supporting authorities for the negotiation for the sale of land being an invitation to treat?
Harvey v Facey
| Candaian Dryers
44
he 2 supporting authorities for the negotiation for the sale of land being an invitation to treat
are Harvey v Facey and Canadian Dryers
Discuss the first
So stupid harvey would do this
The claimant messaged the seller stating asking for the lowest cash price to be paid to buy land. The defendant answered the lowest price. The claimant returned with an acceptance of the offer
HELD:
There had been no offer; The defendants statement was merely a statement of price and not an offer capable of acceptance
45
The claimant messaged the seller stating asking for the lowest cash price to be paid to buy land. The defendant answered the lowest price. The claimant returned with an acceptance of the offer
HELD:
There had been no offer; The defendants statement was merely a statement of price and not an offer capable of acceptance
he 2 supporting authorities for the negotiation for the sale of land being an invitation to treat
are Harvey v Facey and Canadian Dryers
Discuss the first
46
he 2 supporting authorities for the negotiation for the sale of land being an invitation to treat
are Harvey v Facey and Canadian Dryers
Discuss the second
canadians are nicer
The plaintiff company negotiated with the defendant to buy a house. The defendant used his solicitor to write to the plaintiff the last and lowest price he was prepared to accept
HELD:
The letter was held to be an offer, especially given his solicitor sent the draft deed.
47
The plaintiff company negotiated with the defendant to buy a house. The defendant used his solicitor to write to the plaintiff the last and lowest price he was prepared to accept
HELD:
The letter was held to be an offer, especially given his solicitor sent the draft deed.
he 2 supporting authorities for the negotiation for the sale of land being an invitation to treat
are Harvey v Facey and Canadian Dryers
Discuss the second
48
What is the supporting authority that auctions are invitation to treat?
Harris v Nickerson
49
he supporting authority that auctions are invitation to treat Harris v Nickerson
discuss
hey you can't nick that that isn't an offer
The defendant was an auctioneer who advertised when and where the specified days were. The plaintiff attended the sale but all the lots of furniture were withdrawn. The plaintiff sought to recover his expenses and the time wasted in attending the auction which was withdrawn which argued was a breach of contract
HELD:
Court dismissed the claimants case and that the advertisement was merely a declaration to inform potential purchasers, not a warranty that all the articles advertised would be put up for sale.
50
The defendant was an auctioneer who advertised when and where the specified days were. The plaintiff attended the sale but all the lots of furniture were withdrawn. The plaintiff sought to recover his expenses and the time wasted in attending the auction which was withdrawn which argued was a breach of contract
HELD:
Court dismissed the claimants case and that the advertisement was merely a declaration to inform potential purchasers, not a warranty that all the articles advertised would be put up for sale.
he supporting authority that auctions are invitation to treat Harris v Nickerson
discuss
hey you can't nick that that isn't an offer
51
What is the exception to the fact that auctions are an invitation to treat?
if it states that the sale will be without reserve as this constitutes a definite offer to sell to the highest bidder
-Warlow v Harrison
52
if it states that the sale will be without reserve as this constitutes a definite offer to sell to the highest bidder
-Warlow v Harrison
discuss
mrs harrison has one
The plaintiff bid for a pony at the defendants auction but it was sold by the auctioneer defendant instead accepting the higher bid of the owner. There was no reserve.
HELD:
The appeal succeeded as the highest bona fide bidder at an auction may sue the auctioneer as the sale was without reserve
53
The plaintiff bid for a pony at the defendants auction but it was sold by the auctioneer defendant instead accepting the higher bid of the owner. There was no reserve.
HELD:
The appeal succeeded as the highest bona fide bidder at an auction may sue the auctioneer as the sale was without reserve
if it states that the sale will be without reserve as this constitutes a definite offer to sell to the highest bidder
-Warlow v Harrison
discuss
mrs harrison has one
54
What does Poole argue can allow for a bid at auction without reserve?
following Barry, the unilateral offer is only accepted and determined by the fall of the hammer
55
what is the supporting authority for a mistakenly expressed offer?
Hartog v Colin
56
the supporting authority for a mistakenly expressed offer is Hartog v Colin
Discuss
the two h's
The defendants discussed selling the claimant a sum of hare skins for a sum of money. When the final offer was put in writing, the defendant accidentally gave the hare skins per pound instead of per piece
HELD:
The court held that the claimant must have realised the defendants error given it was not the normal measurement of trade. Since the error concerned a term of the contract, the contract was void
57
The defendants discussed selling the claimant a sum of hare skins for a sum of money. When the final offer was put in writing, the defendant accidentally gave the hare skins per pound instead of per piece
HELD:
The court held that the claimant must have realised the defendants error given it was not the normal measurement of trade. Since the error concerned a term of the contract, the contract was void
the supporting authority for a mistakenly expressed offer is Hartog v Colin
Discuss
the two h's
58
What are the 5 ways an offer can be terminated
1) Lapse of Time
2) Revocation
3) Counter Offer
4) Failure of a condition subject to which the offer was made
5) Death
59
What is the supporting authority for the lapse of time revocation?
Routledge v Grant
60
the supporting authority for the lapse of time revocation is Routledge v Grant
discuss
i took the right route
The defendant contacted the claimant offering to purchase the lease and would remain open to the claimant for 6 weeks. During this period and before the claimant accepted, the defendant changed their mind and wrote again to withdraw the offer. After receiving the letter, but within the 6 week period, the claimants accepted his offer.
HELD:
The original letter did not bind the defendant to keep the offer open for the full 6 weeks as it is a fundamental principle of contract law that one party cannot be bound whilst the other is not.
61
The defendant contacted the claimant offering to purchase the lease and would remain open to the claimant for 6 weeks. During this period and before the claimant accepted, the defendant changed their mind and wrote again to withdraw the offer. After receiving the letter, but within the 6 week period, the claimants accepted his offer.
HELD:
The original letter did not bind the defendant to keep the offer open for the full 6 weeks as it is a fundamental principle of contract law that one party cannot be bound whilst the other is not.
the supporting authority for the lapse of time revocation is Routledge v Grant
discuss
i took the right route
62
What are the 2 exceptions to the ability to revoke an offer before a lapse of time?
if there is a lock out agreement, which is a promise to lock a withdrawal of offer or to prevent others from accepting
-Pitt v PHH
2) it must be within a reasonable time
- Ramsgate Victoria Hotel
63
there are 2 exceptions to the ability to revoke an offer before a lapse of time?
1) if there is a lock out agreement, which is a promise to lock a withdrawal of offer or to prevent others from accepting
2) it must be within a reasonable time
- Ramsgate Victoria Hotel
the defendant wanted to purchase shares in the claimants hotel and put in an offer and paid a deposit for a certain price. The claimant hotel did not respond for 6 months and then the claimant received a letter of acceptance by which time the value of shares had dropped
HELD:
Claimants action for specific performance was unsuccessful as the offer the defendant made was no longer valid to form a contract as a reasonable period of time had passed and the offer had lapsed as this was a reasonable time in the context of shares.
64
the defendant wanted to purchase shares in the claimants hotel and put in an offer and paid a deposit for a certain price. The claimant hotel did not respond for 6 months and then the claimant received a letter of acceptance by which time the value of shares had dropped
HELD:
Claimants action for specific performance was unsuccessful as the offer the defendant made was no longer valid to form a contract as a reasonable period of time had passed and the offer had lapsed as this was a reasonable time in the context of shares.
there are 2 exceptions to the ability to revoke an offer before a lapse of time?
1) if there is a lock out agreement, which is a promise to lock a withdrawal of offer or to prevent others from accepting
2) it must be within a reasonable time
- Ramsgate Victoria Hotel
65
Which case decided that an offeris revocable any time before acceptance ?
Offord v Davies
66
Which case established that revocation must actually be communicated and the postal rule of acceptance does not apply?
Byrne v Tienhoven
67
Byrne v Tienhoven established that revocation must actually be communicated and the postal rule of acceptance does not apply
A letter was sent to X offering to sell tinplates. Days later the offers changed their minds but this was not delivered to X until after X accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
68
A letter was sent to X offering to sell tinplates. Days later the offers changed their minds but this was not delivered to X until after X accepted first by Telegram and then by post.
HELD:
The offer was not withdrawn at the time it was accepted and so a contract was formed; this was so despite the lack of agreement between the parties
Byrne v Tienhoven established that revocation must actually be communicated and the postal rule of acceptance does not apply
69
What is supporting authority that the offeror can communicate revocation via a this party?
Dickinson v Dodds
70
What is the supporting offer that a counter offer must be a response which does not comply with the mirror image rule?
Hyde v Wench
71
The defendant offered to sell a farm to the claimant for a sum of money. The claimant rejected this price and offered a lower sum to which the defendant rejected. The defendant then sold the farm to a third party when the claimant attempted to accept the original offer price
HELD:
Claimants claim was rejected as the counter offer had impliedly rejected the original offer and since it was destroyed, ti was no longer open for the claimant to accept
the supporting offer that a counter offer must be a response which does not comply with the mirror image rule is Hyde v Wench
u wench give me it back
72
the supporting offer that a counter offer must be a response which does not comply with the mirror image rule is Hyde v Wench
u wench give me it back
The defendant offered to sell a farm to the claimant for a sum of money. The claimant rejected this price and offered a lower sum to which the defendant rejected. The defendant then sold the farm to a third party when the claimant attempted to accept the original offer price
HELD:
Claimants claim was rejected as the counter offer had impliedly rejected the original offer and since it was destroyed, ti was no longer open for the claimant to accept
73
What are the requirements of an acceptance?
that it is clear and unequivocal and inferred objectively from conduct, signature or obersevance of written terms
74
What is the supporting authority for acceptance being uequivocal, clear under a signature?
L'Estrange
75
the supporting authority for acceptance being uequivocal, clear under a signature
L'Estrange
thats strange
The claimant ordered a cigarette machine from the defendants which was faulty. The contract she had signed contained an exclusion clause which she claimed was breach of a term implied into the Sale of Goods Act
HELD:
Claimants claim failed as when a document containing contractual terms is signed, then in the absence of fraud the signing party is bound
76
The claimant ordered a cigarette machine from the defendants which was faulty. The contract she had signed contained an exclusion clause which she claimed was breach of a term implied into the Sale of Goods Act
HELD:
Claimants claim failed as when a document containing contractual terms is signed, then in the absence of fraud the signing party is bound
the supporting authority for acceptance being uequivocal, clear under a signature
L'Estrange
thats strange
77
What is the supporting authority for silence as not counting as aceptance?
Felthouse
78
the supporting authority for silence as not counting as aceptance Felthouse
discuss
the felthouses'
An uncle and nephew negotiated for the sale of the nephew’s horse. The uncle stated that if he didn’t hear from his nephew, he shall consider the horse his for a given sum. The nephew did not reply but asked an auctioneer to withdraw the horse from an auction which the auctioneer forgot to do and was hence sold to another party. The uncle had to prove there was a contract between himself and his nephew.
HELD:
NO contract since the nephew never communicated his intention to accept to his uncle
79
An uncle and nephew negotiated for the sale of the nephew’s horse. The uncle stated that if he didn’t hear from his nephew, he shall consider the horse his for a given sum. The nephew did not reply but asked an auctioneer to withdraw the horse from an auction which the auctioneer forgot to do and was hence sold to another party. The uncle had to prove there was a contract between himself and his nephew.
HELD:
NO contract since the nephew never communicated his intention to accept to his uncle
the supporting authority for silence as not counting as aceptance Felthouse
discuss
80
What is the supporting authority for a request for information not being an acceptance?
McLean
81
the supporting authority for a request for information not being an acceptance is McLean?
My law teacher would have got out of this
The claimants first telegram enquiring about deliver did not constitute a counter offer and was a mere request for information and so his acceptance was valid and the defendants were in breach of contract
82
What are the 2 exceptions of there being a general rule to communicate acceptance?
1) unilateral contracts-promise for an act (Carlil)
| 2) postal rule
83
Where the offerer has prescribed a particular method of acceptance but does not insist that it is the only acceptance that shall be binding, acceptance communicated in another mode is sufficient to conclude the contract
What is the supporting authority for this?
Manchester Diocesan Council
84
Where the offerer has prescribed a particular method of acceptance but does not insist that it is the only acceptance that shall be binding, acceptance communicated in another mode is sufficient to conclude the contract
the supporting authority is Manchester Diocesan Council
discuss
A tender stated that the person who’s tender is accepted should be informed of the acceptance of his tender by letter. The defendant did not communicate by post but applying Hoffman did not nullify the contract. Any mode of communication which is no less advantageous would conclude the contract
85
A tender stated that the person who’s tender is accepted should be informed of the acceptance of his tender by letter. The defendant did not communicate by post but applying Hoffman did not nullify the contract. Any mode of communication which is no less advantageous would conclude the contract
Where the offerer has prescribed a particular method of acceptance but does not insist that it is the only acceptance that shall be binding, acceptance communicated in another mode is sufficient to conclude the contract
the supporting authority is Manchester Diocesan Council
discuss
86
What is the receipt rule?
email, fax, telephone, face to face et c all follow this rule meaning acceptance takes effect once received (onus on the offeree)
87
the receipt rule states that, under the receipt rule, if it is no ones fault that acceptance has not been communicated, who states that there will be no contract?
Poole
88
What is supporting authority for the fact that where the offeree has done all that he might be reasonably expected to do to get the message through, acceptance takes place?
Tenax Steamship
89
Tenax Steamship is supporting authority for the fact that where the offeree has done all that he might be reasonably expected to do to get the message through, acceptance takes place
discuss
The defendants agreed to sell the ship to the complainant but on several occasions the hire payment was made later than agreed and so the complainant sent a message by Telex to give notice of withdrawal of the ship from service sent during normal business hours, but the defendants did not read it until the next day when they had already made payment
HELD:
The withdrawal was effective as it was when the Telex message was received, not when the message was read
90
The defendants agreed to sell the ship to the complainant but on several occasions the hire payment was made later than agreed and so the complainant sent a message by Telex to give notice of withdrawal of the ship from service sent during normal business hours, but the defendants did not read it until the next day when they had already made payment
HELD:
The withdrawal was effective as it was when the Telex message was received, not when the message was read
Tenax Steamship is supporting authority for the fact that where the offeree has done all that he might be reasonably expected to do to get the message through, acceptance takes place
discuss
91
What is the supporting authority for the postal rule?
Admas v Lindsell
92
What is the postal rule?
post follows the postal rule meaning acceptance takes effect once posted even if it does not reach the offeror a binding contract is formed
93
The defendant made an offer by post to sell the claimant wool asking for a reply in course of post. The claimant posted his acceptance at once but the defendant had assumed his offer was rejected due to the lengthy time it took to arrive and sold the wool to a third party.
HELD:
The contract was made at the time the letter was posted
the supporting authority for the postal rule Adams v Lindsell
94
the supporting authority for the postal rule Adams v Lindsell
The defendant made an offer by post to sell the claimant wool asking for a reply in course of post. The claimant posted his acceptance at once but the defendant had assumed his offer was rejected due to the lengthy time it took to arrive and sold the wool to a third party.
HELD:
The contract was made at the time the letter was posted
95
What are the 3 exceptions to the postal rule?
1) stipulating that a specific form of communication must be used
2) it would be unreasonable to the ordinary man to use post as a method of acceptance where the offeror asks to get back to him by 1pm
3) Where the letter is incorrectly addressed
96
what is supporting authority for the postal rule exceptions?
Holwell
97
the supporting authority for the postal rule exceptions is Holwell
discuss
The defendant stated that acceptance to purchase his house must be given by notice in writing within 6 months; not liable as having written notice was a condition and so postal rule did not apply.
98
The defendant stated that acceptance to purchase his house must be given by notice in writing within 6 months; not liable as having written notice was a condition and so postal rule did not apply.
the supporting authority for the postal rule exceptions is Holwell
discuss
99
what is the supporting authority for mistaken acceptance?
Hindley
100
the supporting authority for mistaken acceptance is Hindley
| discuss
The defendants believed they were biding for hemp but was actually tow and gave an overpriced bid accepted by the complainants. There was held to be no contract as there was no meeting of the minds. The defendants negligence contributed to the mistakes of the complainant.
101
The defendants believed they were biding for hemp but was actually tow and gave an overpriced bid accepted by the complainants. There was held to be no contract as there was no meeting of the minds. The defendants negligence contributed to the mistakes of the complainant.
the supporting authority for mistaken acceptance is Hindley
| discuss
102
under acceptance, the supporting authority for conduct is Brodgen v Metropolitcan railway
Discuss
The complainants and defendant completed business dealings over a number of years on an informal basis having no written contract between them. The parties then decided to create a formal contract for future dealings. The defendants made a draft to which the complainants made minor amendments and sent it back to the defendants who never communicated acceptance but filed the document.
ISSUE:
What there a contract
HELD:
There was a valid contract as the amended draft constituted a counter offer which was accepted by the conduct of the parties. As there was no communication of acceptance, performing the contract without any objections was enough
103
The complainants and defendant completed business dealings over a number of years on an informal basis having no written contract between them. The parties then decided to create a formal contract for future dealings. The defendants made a draft to which the complainants made minor amendments and sent it back to the defendants who never communicated acceptance but filed the document.
ISSUE:
What there a contract
HELD:
There was a valid contract as the amended draft constituted a counter offer which was accepted by the conduct of the parties. As there was no communication of acceptance, performing the contract without any objections was enough
under acceptance, the supporting authority for conduct is Brodgen v Metropolitcan railway
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