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Law of Contract 1: Elements of a Contract (Offer (Situations which do not…
Law of Contract 1: Elements of a Contract
Offer
Parties
Offeror: Party who makes offer
Offeree: Party whom offer is made
Situations which do not amount to offer
Invitation to Treat
Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd [1953]
Fisher v. Bell [1961]
Supply of Information
Harvey v Facey [1893]
Declaration of Intent
General Rules
1) Offer Oral or in Writing
2) Made to:
Single Person (Only he can accept)
Group of Persons (Someone from group can accept)
World at large
(Anyone can accept by complying with terms)
Carlill v. Carbolic Smoke Ball Co. [1893]
3) Communicated to Offer before accepted
Termination
Revocation of the offer
Byrne v Van Tienhoven [1880]
Rejection by the offeree
Offeree communicates rejection of offer to the offeror
Offeree makes a counter offer
Hyde v Wrench [1840]
Lapse of offer
Acceptance
General Rules on Acceptance
2) Oral, in writing or by conduct
3) Absolute and unconditional
1) Conform to the prescribed method
4) Communicated (Felthouse v Bindley [1862])
Exceptions
1: Acceptance by Post (The Postal Rule)
Household Fire Insurance Co v Grant [1879]
Except instantaneous communications
Entores Ltd v Miles Far East Corporation [1955]
2: When Communication of Acceptance has been Waived
Intention to Create Legal Relations
Presumptions
Commercial and Business Agreements
Court presumes parties intend contract to be legally binding
Domestic and Social Agreements
Court presumes parties do not intend agreement to have legal effect
Consideration
Parties
Promisor: Party who makes promise to do something or not to do something
Promisee: Party to whom the promise is made
Rules on Consideration
Must be real
Need not be adequate
Consideration must move from the promisee (‘Privityofcontract’)
Price v Easton [1833]
Exceptions
a. the contract expressly provides that he may
b. the term purports to confer a benefit on him.
Must be legal
Must not be past