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CONTRACT FORMATION :writing_hand::skin-tone-2: (contract definition (types…

- - - - one party binds themself to perform a stated promise upon performance of the requeted act or conndition by the offeree :speaking_head_in_silhouette:
        
        e.g. promising the reward of £100 in return for a lost phone
        
        reward contract :trophy::medal:
        
        the offeree gives no promise to perform but is left free to choose whether to perform or not
        
        Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 – advertisement offering to pay £100 to any person who caught influenza after using the smoke ball remedy in the specified manner
        
        offer can be rejected if statement seen as invitation to treat and performance as offer
        
        the offer must be actually communicated to the offeree
    - - exchange of promises :silhouettes:
        
        e.g promising not to use phone in lectures if promised to be taught well
  - - - court only enforces contracts supported by consideration :thinking_face:
- - - - requires "meeting of the minds" 👩🏻‍💻
        
        does not mean that subjectively the parties' intentions must coincide
      - 👦🏻reasonable person test- does it appear, on external evidence, that the parties had an agreement? :thinking_face:
        
        who IS this reasonable person? no consensus 👤
      - why? practicality and certainty :check:
        
        HOWEVER- still residual subjectivity 🤨
        
        'snapping up' cases :crocodile:
        
        If one party knows or ought to reasonably know that the other party does not have the intention she appears to have, first party not worthy of protection. :woman-gesturing-no::skin-tone-2:
        
        Hartog v Colin & Shields [1939] 3 All ER 566
        
        contract to sell 3000 Argentinian hare skins to the claimants :flag-ar: :rabbit2:
    - - e.g. getting into a taxi implies you want to go somewhere :taxi:
  - - - Lord Denning: A contract is formed when there is, to all outward appearances, a contract. :male-judge::skin-tone-2:
    - - meaning of objectivity: If a person so conducts him or herself so that a reasonable person would believe that that person was assenting to the terms proposed by the other party, and that other party upon that belief enters into contract with him or her,
        the person thus conducting herself would be equally bound as if she had intended to agree to the other party’s terms.’
- - - - can be made orally :lips: in writing :writing_hand::skin-tone-2: or through conduct :runner::skin-tone-2:
      - only an offer can turn into a binding contract once accepted- invitation to treat cannot
      - offer must be:
        
        specific enough in terms of the main obligation and price to be capable of immediate acceptance :scroll: :moneybag:
        
        made with an intention to be bound by the mere fact of acceptance :handshake:
    - - need to identify when contract has been formed because:
        
        :one: parties may not have reached agreement at all – no contract :forbidden:
        
        :two: once offer has been accepted, not possible for either party to withdraw unilaterally :left_right_arrow:
        
        :three: terms of contract fixed at time of formation :scroll: :check:
    - - difference between ITT and offer?
        
        depends on intention :scales:
- - - - likely to be mass produced, e.g. rail tickets :bullettrain_side: :ticket:
  - - - Gibson wanted to buy his council house and manc replied saying they may be able to sell it to him for £2580, he asked if that price reflected condition of house and they said yes and its non negotiable, he replied saying he wants to proceed
      - contrast with Storer v MCC
  - - - they are rebuttable
      - display of goods for sale:
        
        Fisher v Bell [1961] 1 QB 394:hocho: display of a flick-knife in shop window- this is made at the point you present your chosen goods at the desk to pay- prosecuted for offering those knives for sale but conviction overturned on the basis he had not offered it for sale- only amounted to invitation to treat
        
        what are the options?
        
        :one: display as ‘offer’. ‘Acceptance’ when customer puts goods in basket
        
        :two: display as ‘offer’. ‘Acceptance’ when customer takes them to the cash desk
        
        :three: display as ‘invitation to treat’. ‘Offer’ when customer takes them to the cash desk. ‘Acceptance’ by shop at the cash desk
        
        similarly, Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401
        
        BUT display of goods can be interpreted as an offer in some cases- Lefkowitz v Great Minneapolis Surplus Stores 86 NW 2d 689 (1957)advertisement by store to sell fur coats and fur stole. 🧥
        [Note: American case :flag-us: – persuasive authority only]
      - advertisements:
        
        general rule: advertisements, brochures, price lists, etc are invitations to treat, not offers. :love_letter:
        
        Partridge v Crittenden [1968] 1 WLR 1204 - advertisement in a periodical indicating certain wild birds for sale. :bird::
        
        similarly, Grainger and Sons v Gough [1896] AC 325 wine merchant’s catalogue and price list :wine_glass: reasoning: business sense :moneybag:
        
        are exceptions to the rule that advertisements are generally invitations to treat: e.g. in unilateral contracts, an advertisement can be an offer.