In crafting my contract law note, I embarked on a comprehensive exploration of the intricate facets of contract law, from the foundational principles governing contract formation to the complexities surrounding the enforcement and interpretation of contractual obligations. My objective was to not o...
Agreement 1:
For the formation of the contract, we need to have 4 things which are:
1. Agreement (offer and acceptance)
2. Consideration
3. Intention to create legal relations (ITCLR) and
4. Capacity.
There are 2 types of content of the contract which are:
1. Terms of contract:
1. Express and
2. Implied
2. Exemption clauses
Contracts can be vitiated for many reasons which weaken the contract. Those are:
a. Misrepresentation
b. Mistake
c. Illegality
d. Duress and undue influence
For some reason a contract can be terminated, or discharge of liability can arise which are:
1. Performance
2. Breach
3. Agreement and
4. Frustration
For breach of contract, remedies will be available which are:
1. Common law remedies (occurs as a right): Damages
There are 3 types of measures of damage:
1. Expectation measure,
2. Reliance measure,
, 3. Restitutionary measure.
2. Equitable remedies:
There are four types of equitable damage:
1. Specific performance
2. Injunction
3. Recission
4. Rectification
Doctrine of freedom of contract:
Parties with contractual capacity to a valid contract are free to regulate their relations without any
interference.
Definition of contract:
Treitel in The Law of Contract defines a contract as:
an agreement giving rise to obligations which are enforced or recognised by law. The factor which
distinguishes contractual from other legal obligations is that they are based on the agreement of the
contracting parties.
Beatson in Anson’s Law of Contract defined it as:
A legally binding agreement is made between two or more persons, by which rights are acquired by one
or more to act or forbearance on the part of the other or others.
Formation of a contract:
For the formation of the contract, we need to have 4 things which are:
5. Agreement (offer and acceptance)
6. Consideration
7. Intention to create legal relations (ITCLR) and
8. Capacity.
And communication of the offer can be made to an individual or a group of people or to the whole
world. An offer can be terminated by
1. Revocation (Offeror),
2. Rejection (Offeree),
3. Lapse due to: passage of time, death or non-fulfillment of a condition.
Bilateral contract:
,Where one party as a promisor gives a promise to the Promisee and receives a promise in return. Here
promises are their consideration to the contract.
Unilateral Contract:
Mckenrick: Unilateral Contract: A unilateral contract is a contract whereby one party promises to pay
the other a sum of money or to do some other act and if that other party will do or refrain from doing
something without making a promise to that effect. Here consideration is the specified act of
performance according to the terms of the offer.
There are 3 kinds of unilateral offer:
1. world at large (carlail v carbolic smoke ball),
2. a group of people (Jill Poole- Text Book),
3. a party (Errington v Errington).
Void contract:
A contract which has no legitimacy in law, and they are to be treated as invalid. Like a contract under
duress.
Voidable Contract:
A contract which is still legally binding but one of the parties has the option to set aside or rescind the
contract. Like a contract by misrepresentation.
Consideration:
According to Sir Frederick Pollock `which was adopted In Dunlop Pneumatic Tyre Co Ltd v Selfridge &
Co Ltd (1915) by Lord Dunedin, stated that an act of forbearance (biroto thaka) of one party or the
promise ( shei somngkranto kono promise) thereof, is the price for which the promise of the other is
bought, and the promise thus given for value is enforceable.
Offer:
OFFER MUST BE CERTAIN:
Hervey v Facey: An offer is an expression of willingness to contract on specified terms, made with the
intention that it is to become binding as soon as it is accepted by the person to whom it is addressed’
Scammel v Ousten: If the statement is so vogue based on which a contract will be formed then there
will be no agreement between the parties.
Harvey V Facey: Supply of information is not an offer.
Loftus v Roberts/Hillas v Arcos: Vague offers can’t be accepted.
Walford v Miles: An incomplete agreement will not be enforced.
Hillas v Arcos: However, if an offer is capable of being made certain by reference to trade or custom or
by implying a term, then the court will grant it as enforceable.
, TO WHOM CAN OFFER BE MADE?
CARLILL v CARBOLIC SMOKE BALL CO.: An offer can be made world at large and will be accepted when
the offeree starts performing in accordance with the terms stipulated in the contract.
ITT:
Gibson V Manchester City 1979: An invitation to treat is an expression of willingness to enter into a
negotiation which is expected to lead to an offer. And the language should be determined objectively.
DISPLAY OF GOODS FOR SALE (ITT)
PHARMACEUTICAL SOCIETY v BOOTS: goods on shelves are invitations to treat. Offer made by customer
at cash desk.
FISHER v BELL [1961]: display of goods (knife) in shop window is invitation to treat.
THORNTON V SHOE LANE PARKING LTD [1971]: vending machines - offer when machine ready to
receive money.
Lefkowitz (USA): Wording like first come first serve may lead the display of good to be an offer.
Partridge v Crittenden: Advertisement for sale is generally an ITT.
Carlill v Carbolic: Advertisement can be an offer when it requires some action in return which the
advertiser promises to pay, it will be determined through objective sense.
PSGB V Boots: Display of goods is generally an ITT. An offer is made when the customer puts the goods
on the cash desk, not when he removes it from the shelves.
ADVERTISEMENTS (ITT)
PARTRIDGE v CRITTENDEN: an advert in the paper for sale of wild birds was an invitation to treat.
GRAINGER v GOUGH: wine merchant’s price list not an offer to supply unlimited quantity of wine at
price indicated.
AUCTION SALES (ITT)
PAYNE v CAVE - call for bids = invitation to treat, bid = offer. Accepted when hammer falls
(SALE OF GOODS ACT 1979 s 57)
HARRIS v NICKERSON - advertisement = mere statement of intention to hold sale.
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