Section A Flashcards
(27 cards)
Contract
A contract is an agreement giving rise to obligation
On the part of both persons which are enforced and recognised by law
Unilateral
Only one party assumes obligation
Bilateral
Two parties and both assume obligation
Offer
An expression of willingness to contract on certain terms with the intention it shall become binding
Trietal
Payne v cave 1789
Auction
Offer can be withdrawn at any time before the acceptance is complete
Lord Kenyon~> defendant was at liberty to withdraw his bidding any time before the hammer was knocked down
Invitation to treat
Based on intention of parties
If a limited supply it’s often an invitation to treat
Harvey v Facey (Australian)
Faceys reply was a response to a request for information not an offer
Gibson v Manchester city council
‘May be prepared to sell the house to you’
Not an offer
Storer v Manchester city council
‘I will send you the agreement signed on behalf of the [council] in exchange’
Intention here was to sell so it’s an offer not invitation to treat
Advertisement
For an advertisement to constitute and offer it must be clear and definite
Example is carlill v carbolic
Partridge v Crittenden 1968
Wild birds avertised for sale contrary to Protection of Birds Act 1954
Advert deemed an invitation to treat not an offer
Fisher v Bell 1960
Knife for sale
ITT not an offer
Pharmaceuticals society of Great Britain v boots cash chemists
On display on a shelf is an invitation to treat
Sale took place on the cash desk
Counter offer
A counter offer terminates original offer
Hyde v wrench
Farm for sale for £1000
Counter offer for £950
Refused counter and when tried to accept previous offer he was told it wasn’t available
Terminated by counter offer
Stevenson v Mclean (1880)
Sent a telegram asking about delivery and longest time
Not a counter offer just an enquiry
Therefore still a binding contract
2 offers
Pickfords v Celestica(2003)
Two quotes sent seconds with more detail than the first
13th sept- 100k price per load
27th- £98,760 fixed price
15th fax stating not to exceed 100k from defendants titled confirmation
CoA said second offer withdrew the first
Fax was intended to accept the first offer by since it had been revoked and work carried out the conduct was acceptance of counter offer
Second offer may automatically be revoked it offeror ‘clearly indicated and intention…to withdraw the first offer’
Battle of the forms
Last shot wins the battle
Each new form is treated as a counter offer
When one party performs obligation conduct is seen as acceptance
British road services v Arthur v crutches and co ltd (1968)
‘Received under [our] conditions’
Counter offer from crutchley accepted when goods were handed over
Lord Denning suggested the courts have a less rigid approach and decide whether parties thought they had a binding contract
Butler v machine tool ltd v ex-cell-o Corp (1979)
Sellers quote had price variation clause
Responded with order stating ‘accept order on therms and conditions thereon’ ~> no price variation clause
Sellers returned acknowledgement slip stating order accepted in accordance with earlier quotation
CoA took this to be type of machine tool not the terms listed on back of seller document so it was buyers terms used
GHSP Incorporated v AB electronic ltd (2010)
Not on either parties terms as neither willing to contract on each other’s terms
Unwritten contract containing implied terms of sales of goods act 1979~> satisfactory quality
Surprising contract consisted ourely of this but fits with Lord den inns proposed approach to this type of case
The postal rule
Acceptance takes effect when posted not communicated
Adams v Lindsell 1818
Postal rule laid down
Claimants accepted 5th sept by post
Defendants sold wool to third party on 8th sept
Therefore defendants were bound from evening of 5th September
Cowan v O’connor (1888)
Acceptance came into effect when telegram was placed with post office
