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Contract Law lecture notes (ENTIRE MODULE)

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  • October 30, 2023
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  • 2023/2024
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L2 ~ Objecting theory of contract formation
Tuesday, October 12, 2021 12:06



-Objective theory of contract formation
-Formation of a contract= offer + acceptance = contract
-Smith v Hughes (1871)
-Formation will be linked to the consent manifest by a “reasonable
man”.
-This will be found in what is written in the contract (if it is written),
what is said by the parties (if it is oral), and not what the parties
were thinking or how they felt.
-This is linked to the availability and credibility of evidence.
-Blackburn J ~ If, whatever a man’s real intention may be, he so
conducts himself that a reasonable man would believe that he was
assenting to the terms proposed by the other party, and that other
party upon that belief enters into the contract with him, the man thus
conducting himself would be equally bound as if he had intended to agree
to the other party’s terms.

-Hartog v Colin Shields 1939
-What if person accepting an offer knows offeror not intending to
make offer…??
-Defendant offered to sell 30,000 Argentinian hare skins to the
claimants at price per pound but previous negotiations price per
piece (3 pieces to the pound/more usual)
-Held for seller- buyer could not snap up skins at absurdly low price
“The plaintiff could not reasonably have believed that the offer
contained offeror’s real intention”

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