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Law of contacts PART 1 (Elements to make up a binding contract…

- - - - Oral/ Writing
      - Made to
        
        Single, that person accept offer
        
        Group, someone from that group can accept
        
        World, anyone may accept by complying with the terms
      - Must be communicated, before it can be accepted - offeree cannot accept offer if they are unaware of its existence
    - - Invitations to treat
        
        Invitation to others to enter into negotiations, which may lead to making of offer - self service shop; shop window (Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd 1953)
        
        Case Law: Fisher v. Bell (flick knife)
      - Supply of information
        
        Supply of info or statement of selling price given in reply to a request - not an offer (Harvey v Facey (1893)) Bumper Hall Pen
      - Declaration of intent
        
        Statement expressing an intention to do something is not an offer capable of being accepted (say got sale after that cancelled - no offer)
    - - Revocation of the offer
        
        Offer can be revoked at any time before it is accepted but must be communicated to the offeree (Byrne V Van Tienhoven (1880)) tinplates
      - Rejection by the offeree
        
        Takes place when
        
        Offeree communicates his rejection of the offer to the offeror - Hyde v Wrench (1840) farm
        
        Offeree makes a counter offer
      - Lapse of offer
        
        Death of either the offeror/ offeree before acceptance
        
        Where the offer has not accepted within prescribed time; no time limit - reasonable time (Ramsgate Victoria Hotel v Montefire (1866)) buy shares - reply after 6 months
  - - - Commercial and business agreements - court presumes that the parties intend their contract to be legally binding
      - Domestic and social agreements - Court presumes that the parties do not intend their agreement to have legal effect (GAGA)
  - - - Promisor : person who makes the promise
      - Promisee : party whom promise is made
    - - Must be real ;Consideration given must be of some value, however small ; not consideration: Acts of love and affection, acts done out of a moral or social duty
      - Need not be adequate; Parties are free to decide on the terms of their contract ; as long s some value is given, proportional in value does not matter
      - Must move from promisee (privity of contract), only a party to a contract can sue or be sued on that contract; the person to whom the promisee is made must furnish the consideration, no third party can benefit from the contract (Price v Easton (1833))
        
        Exception: 1. The contract expressively provides that he may 2. The term purports to confer a benefit on him
      - Must be legal
      - Must not be past
  - - - Acceptance by post (postal rule- acceptance by letter or telegram is complete when letter is posted, even if its late or never arrives) (Household Fire Insurance Co v Grant (1879)) buy share agree then dw pay
        
        Does not apply to instantaneous communications - telephone, telex and fax; in this case it must be communicated - Entores Ltd v Miles Far East Corporation (1955)
      - When communication of acceptance has been waived - if offeror expressively or impliedly waives the need for communication - no need (carlill v carbolic smokeball)