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Class notes Contract Law Contract Law, ISBN: 9781352012064
Contract law first class notes
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lOMoAR cPSD| 3999081, lOMoAR cPSD| 3999081
CONTRACT LAW REVISION NOTES:
THE AGREEMENT
o contract =
o actionable promises
o Involves at least 2 parties - promisor + promisee
o Involves outward expression of common intention + expectation as to the
assurance in the promise
OFFER + ACCEPTANCE
o Need to establish that both offer + acceptance have been definitely concluded
Unilateral offer:
o Offer of promise for an act: when A offers reward for B doing certain thing, which
being done, promisor is bound to make good the promisee.
e.g. B returns (knowing of offer) dog to A, who offered £25 reward o t
anyone who could bring dog home safely. Act is done = A is bound to
pay.
Here, it is the performance on one side which makes the promise
obligatory on the other.
Outstanding obligation is all on one side.
Bilateral offer:
o Offer of a promise for a promise - When B accepts A's offer by doing promise, the
contract consists of an outstanding obligation of both sides - so A has obligation too.
e.g. C promises to pay D £10, if D promises to do gardening within a
certain time. Both sides accepting they are to be bound to promises.
Here, each party is obliged to some act or forbearance.
Outstanding obligation on both sides.
Promises in deeds:
o exceptional situation where it's clear a contract can come into existence without
'offer and acceptance'
e.g. wealthy person, by his deed, promises to pay a school £100,000
Promise = binding, no need for an acceptance or even knowledge of
promisee.
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Inferences from conduct:
o Agreement may be inferred from conduct alone - aside from verbal or written
communication.
o Acceptance need be inferred from context of situation.
e.g. person boarding bus undertakes to pay fare, even though no
express promise is made
e.g. B putting coin into machine, here B (supplier) has entered contract
with customer - even though 0 words exchanged.
o BUT - when more than 2 parties involved, not always definite O + A.
o e.g. Clarke v Earl of Dunraven - 2 yacht owners entered in club regatta, rules
of regatta stipulated competitors make good any damage caused by fouling.
o D fouled and sank V boat.
o Held: although immediate relationship between boat owners and club, it was
held a contract existed between C and D + the clamant could recover
damages.
Test of intention:
o Objective test
o thus a person may be held to have made an offer without appreciating one was being
made.
o Same objective test to acceptance - although offeree intentions are taken into
consideration.
THE OFFER
o Willingness to enter into a legally binding contract + in its terms expressly or
impliedly indicated that it is to become binding on offeror as soon as it has been
accepted.
Offers and Invitations to Treat:
o Offer = An invitation communicated by one party to another to enter into a legally
binding contract on certain specified terms = capable of acceptance
o Invitation to treat = An invitation to enter into negotiations (not binding) with a view
to creating an offer = mere invitation to offers
o Statement of Fact = Cannot constitute as offer, merely supplying information,
therefore no acceptance can occur + t/f no valid contract created.
E.g. 1. Harvey v Facey - Stating 'lowest price' does not constitute an
offer
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o E.g. 2. Gibson v Manchester City Council - stating "we may be prepared to sell"
equates to an invitation NOT offer to sell.
Advertisements:
o Generally - adverts in newspapers that the advertiser has goods for sale are not
offers.
o Nor are catalogues or price lists.
o Prevents advertisers from being obliged to sell to every person who accepted such
'offer'
o A display of goods marked at certain price by a shopkeeper in shop window does not
bind the shopkeeper to sell at that price or at all.
o = merely invitation to treat.
o It is for customer to offer to buy the goods
e.g. Fisher v Bell = Display of an article with a price on it in a shop window
was only an invitation to treat and not an offer - display of illegal flick knife.
Displays of goods for sale:
o Displays of shelves in self-service shops: Invitations to treat.
o Where goods are sold on a self-service basis, the customer makes an offer to buy
when presenting the goods at the cash desk - shopkeeper may accept or reject offer.
o Display cannot be offer - otherwise moment item placed in basket, would be seen as
accepting offer + customer wouldn't be able to change mind.
e.g. Pharmaceutical Society v Boots Cash Chemists
o Self-service shelf display of medicine was an advertisement for
bilateral contract.
o t/f merely invitation to treat
o The offer was made by customer when they placed goods at cash desk
+ offer was accepted by the shop at cash desk
o t/f displaying of goods is not offer.
However, ...
o Where display clearly states that the goods will be sold to a person who pays the
required price - likely to be held as offer.
o e.g. Notice stating " we will beat any Wifi price by £20 on spot" = continuing offer +
t/f liable.
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