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What is meant by the term “contract”?

A contract is an agreement which can be legally enforced.


What three ways can an agreement be made?

1. Written
2. Orally
3. Inferred by conduct


For a contract to become, both/all parties must intend for the contact to be...

Legally enforceable


What does “freedom of contract” mean?

Freedom of contract is the right of an adult to make a legally binding mutual agreement with one or more other persons without government interference as to what obligations he or she can take upon themselves


In regards to contracts, implied terms are?

Terms of the contract which go without saying. For example, if you buy food from a shop, it goes without saying that the food should not be poisonous to humans.


Certain clauses can no be added into a contract whether both parties agree or not, give an example of one clause that cannot be added into a contract.

You cannot exclude liability for personal injury from a contract.


Name four key stakeholders most businesses have contracts with.

1. Insurers
2. Suppliers
3. Employees
4. Customers
5. Building contracts
6. Shareholders


Broadly speaking, what 4 things are essential for a contract?

1. An offer
2. An acceptance
3. A consideration (something for something)
4. An intention to create legal relations


“Capacity to contract”means...

Minors cannot enter into contracts along with drunks and people without sound minds.


What constitutes an “offer”?

An unambiguous statement of willingness to be bound by a contract


The giving of an opinion is...

Not to be considered an offer. I.e. “I think so” is not legally binding


In relation to an offer in a contract, a boast is... and is/isn’t legally binding.

Something used in marketing to make people buy a product e.g. Redbull gives you wings.

Boasts are not legally binding


An invitation to treat differs from an offer because...

An invitation to treat is simply an indication someone is prepared to take offers.


An invitation to treat can be seen as the .............. the offer

Step before the offer


Contracts can either be...

1. Bilateral


2. Unilateral


What is a bilateral contract?

A promise made in return for a promise (each party says they’re going to do something).


What is a unilateral contract ?

One party promises to do something usually in return for the completion of an act. The other party does not promise to do anything E.g. lost pet rewards.

In a unilateral contract, it is uncertain who will fulfill the contract.


The offeror....

Makes the offer


The offeree...

Accepts the offer


What is the case involving the display of flick knives?

Fisher v Bell


Outline the case details of Fisher v Bell

1. The defendant had a display of flick knives in his shop window.
2. It was an offense to offer for sale flick knives.
3. The display was an invitation to treat and was not an offer to buy.
4. The defendant was not guilty.


Outline the case facts of Partridge v Crittenden (1965).

1. It was an offense to offer for sale a wild bird contrary to protection of wild birds act.
2. The defendant published an advert for a wild bird.
3. The advert was only an invitation to treat.
4. Defender was not guilty.


In general adverts do not constitute...



Outline the case facts of Harvey v Facey (1893).

1. One farmer asked another via Telegraph the lowest he would accept for a piece of land for.
2. The farmer replied £900. (But did not want to sell)
3. The purchasing farmer takes the other to court because he thinks they have agreed a price.
4. The statement “the lowest would be £900” is a statement, not an offer.


The offeree must know about the offer before they can accept it. The case for this is... in which ....this happened

Bloom v American Swiss watch company (1915).

1. The company put a reward out for information relating to a theft.
2. The claimant gave them information relating to the theft unaware of the reward offered.
3. The claimant was not entitled to the reward.


What 5 things can end (terminate) a contract?

1. Revocation - (withdrawal if unilateral contract8
2. Lapse of time
3. Death
4. Counter offer
5. Acceptance


In Routledge v Grant (1828) the defendant offered to buy the claimants house and gave them 6 weeks to accept the offer. The defendant withdrew their offer before the 6 weeks, the decision was...

The defendant was entitled to do so because the contract doesn’t exist until it has been accepted


A counter offer has the effect of...

Terminating any previous offer.


In general the acceptance of an offer must be....

Communicated to the offeror


Acceptance in letter form comes into fruition as soon as...

The letter is posted, not when it arrives