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37 Cards in this Set
- Front
- Back
Define contract
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Legally binding agreement (by two or more people which rights are aquired to acts or forbearances on the part of the other or others)
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What are the 4 essential elements in the formation of a contract
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1. Offer
2. Acceptance 3. Consideration 4. Intention to create legal relations |
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What is the meaning of objective in the context of agreement to contract
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The Judge decides what each party was reasonably entitled to conclude from the attitude of the other
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Define "Offer"
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an expression of willingness to contract on clear terms made with the intention that a binding contract will arise if it is accepted
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How may an offer be made? (3)
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Orally, in writing or implied by conduct (i.e. starts using the goods that have been sent)
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Name of case where the offer was not specific but made to the world
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Carllil v Carbolic Smoke Ball Co (1892)
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Offers must be distinguished from invitations to Treat (ITT)
Case - statement of lowest cash price was ITT |
Harvey v Facey (1893) sale of land negotiatons
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Statute regarding auctions being Invitations to Treat
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s57 (2) Sale of Goods Act 1979
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Offers must be distinguished from invitations to Treat (ITT)
Case where a display was ITT |
Fisher v Bell (1961) - flick knife
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Offers must be distinguished from invitations to Treat (ITT)
Case where advertisment was ITT |
Patridge v Crittenden (1968)
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Case demonstrating that an offer is only valid if it is communicated and there can be no acceptance of an offer that you aren't aware of
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Taylor v Laird ((1856) - ships captain sailed ship back without owners awareness and claimed wages.
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What was established in Payne v Cave (1789) regarding revocation of an offer
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That the offeror can revoke or withdraw his offer at any time until it is accepted
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Case which establishes that in ulilateral offers the reward cannot be claimed by someone who didn't know of the offer
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Fitch v Snedaker (1868) New York case
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Case which states that motive isn't relevant in unilateral offers
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Williams v Cawardine (1933) - gave info to settle conscience but still entitled to claim reward
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Case which held that in unilateral contracts the power to revoke is lost if the continuing condition is being fulfilled
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Errington v Errington and Woods (1952) - daughter in law and son still paying mortgage
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What ways other than revocation can mean an offer is incapable of being accepted (4)
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Lapse of time, death, failure of unconditional precedent, acceptance (i.e. if made to a several people and one accepts)
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What must acceptance be? (3)
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Final, unconditional and communicated (either orally, in writing or inferred by conduct)
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What is a cross-offer and what impact does this have on the formation of a contract
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When both parties make identical offers to each other more or less at the same time.
There is no contract as there has been no acceptance |
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Case regarding cross offers and the fact that there is no contract because there has been no acceptance
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Tinn v Hoffman & Co (1873)
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a) What is it called when an offeree accepts but adds a new term?
b) what is the effect on acceptance? |
a) Qualified acceptance
b) No valid acceptance. This is a counter offer. |
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Case which highlights that a counter offer which seeks to vary the terms ends the original offer and that acceptance must be a "mirror image"
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Hyde v Wrench (1840)
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What rule applies to the battle of the forms and what is it
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The last shot rule means that the contract is concluded on the terms of the last document to be sent before performance commences
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Case which demonstrates the battle of the forms and last shot rule
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Butler Machine Tool Co v Ex-Cell-O Corp (1979)
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When can the last shot rule in the battle of the forms be displaced
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If evidence shows that the parties intended something different i.e in a long term relationship
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Give 2 scenarios involved in tender offers (4)
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a) Definite quantity to be delivered a specific time - acceptance of tender =binding contract
b) Goods which 'may' be required in specfic time - suppliers standing offer is only accepted when the order is placed |
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Case involving standing orders and the acceptance of the offer only being when the order is placed and that once the order is placed the standing offer can not be revoked until that order is executed
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Great Northern Railway Co v Witham (1873)
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What is a referential bid and what did House of Lords imply about these in Harvela (1985) (2)
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When a bid is made in relation to anothers' bid i.e. £200K or £10K in excess of of any other offer.
These are not acceptable unless there are express words allowing such bids |
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a) Case demonstrating that silence cannot equal agreement
b) Statute that also covers this |
a) Felthouse v Bindley (1862) - horse, uncle and nephew
b) Consumer Protection (Distance Selling) Regulations 2000 |
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What is the postal rule?
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Acceptance is effective as soon as a letter is posted indicating this
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Case demonstrating the postal rule
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Adams v Lindsell (1818) - wool sale
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How can the postal rule be excluded?
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By the mode of acceptance being expressly stipulated
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Case where a letter received in business hours was deemed as effective communication even if unopened
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The Brimnes (1975) - communication of revocation in this case
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What is the general rule on communication and is this objective or subjective
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General approach is that agreement should be communicated and the test is subjective (did the parties think they had communicated agreement)
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Case which established that revocation must be communicated
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Byrne v Van Tienhoven (1880)
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Case highlighting that acceptance must be communicated and heard
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Entores v Miles Far East Corporation (1955)
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Case where in a unlilateral offer once performance has begun the offeror shouldn't withdraw or attempt to prevent performance
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Daulia v Four Millbank Nominees (1978)
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Four statutes which govern agreement and a brief description of their purpose or effect
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1. Sale of Goods Act (1979) - implied terms which are deemed to be agreed
2. UCTA 1977 - governing the extent to which parties can contract out of implied terms 3. Unsolicited Goods and Services Act 1971 ammended by Consumer Protection Distance Selling Regs 2000 - in certain circumstances the goods sent are unconditional gifts 4. Electronic Communications Act 2000 - agreement only when customer has received acknowledgment and confirmed receipt |