This document explains the first few concepts of Contract Law. It includes invitation to treat, offer to buy, offer to sell, auctions, Harvey v Facey, Carlill v Carbolic Smoke Ball, Acceptance, Request for Information, Counter Offer, etc.
Contract Law Cases + Imp
03/10/22 info
Topics covered: Invitation to Treat, Auction, Offers for reward, Rules for
Fisher V Bell
acceptance, Acceptance by conduct, Counter offers, Request for Information
Pharmaceutical society v
boots cash chemists
Carlill v Carbolic Smoke
Invitation to treat – Spencer V. Harding – word “offer” is used in ad Ball
Barry v Heathcote Ball
General Offers: Commercial & general
investments v
Carlill v Carbolic Smoke Ball: Manchester Council
Advertisement by CSB – selling ‘medicines’; advertisement said the
company would offer 100 to anyone who caught influenza after taking
the ‘medicine’ 3* daily for 2 weeks claimed 100 pounds is the
advertisement an offer?
Court held it was an offer:
o Wording showing a readiness to be bound
o 1000 pound put into the bank to show sincerity towards promise
o Context: Ad required something to be done, without reference to
person placing ad – you don’t need to refer to the company again
to prove that she’s taken them, expenses and inconvenience for
Carlill
What is the key point that makes/breaks the case? Apply to other cases
and see if they align
[Offers for reward are a unilateral contract
Unilateral contract – only one party makes a promise]
Auction Sales
Item will not be sold unless highest bid > (is more than) minimum price
Minimum price Auction sets this up to ensure they don’t run into
losses different for different items
Sometimes auctions are advertised without a minimum/reserve price
Barry v Heathcote Ball – advertised without reserve price = an offer to sell
Offer Acceptance: counted as making the highest bid u can sue for
breach of contract if they deny selling
Compensation: 28000-400 (MRP-amount of bid given = 27600)
Acceptance:
o RFI (Request For Information)
o Counter offers
o Acceptance through conduct – unequivocal/overt indicating
acceptance
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