Unit 21 - Aspects of Contract and Business Law
P1 P2 P3 M1 Appendix A and Bibliography
This document must be used along side with the unit 21 P1 P2 P3 M1 (that I have already uploaded to use if wish).
In the document, there will be some real previous law cases to be used in the first assignment ...
Abdulalah Al-Jobore
Unit 21 - Aspects of Contract and Business Law
P1 P2 P3
Appendix A
Stevenson Jacques & Co. v McLean [1880]
An offer was made to sell a quantity of iron by Mr McLean. The offer was accepted by Mr Stevenson,
but he wanted to know if delivery of the iron could be done in stages as he was unable to accept all
of the iron at once. Mr Stevenson, having heard nothing, then sent a formal letter of acceptance. Mr
McLean, however, based on the enquiry about delivery methods, believed that the contract was
ended and had sold the iron to a third party. Mr Stevenson successfully sued for breach of contract.
The defendant's argument that there had been a counter-offer failed. The Court held that the
enquiry was not a counter-offer. Contractual Cases Study
Hyde vs. Wrench (1840)
The defendant offered to sell his farm for £50000. The claimant at first said that he would pay only
£45000, but after a few days said he would pay the full price. He heard nothing from the defendant.
It was held that there was no contract between the parties: the defendant had not accepted the
offer from the claimant, who had destroyed the defendant’s original offer by his counter – offer of a
reduced price. The claimant’s subsequent statement that he would pay the asking price could not
revive the original offer. It was a new offer which the defendant never accepted.
If the offeree, while not accepting an offer, asks for further information, or tests out the ground to
see if further negotiation is possible, this is not treated as a counter – offer; it, thus, does not destroy
the offer. “Law for business students” Alix Adams; fourth edition; p53, 2006
Butler Machine Tool Company Ltd v Ex-Cell-0 Corp. (Eng) Ltd [1979]
The Butler Machine Tool Company offered to supply machinery to the Ex-Cell-0 Corporation for
£75,535. The quotation included a term in a standard form contract called a variation clause that
allowed the seller to increase the price of the quotation. The Ex-Cell-0 Corporation accepted the
offer on their own standard form contract that was silent as to variation clauses.
An agreement was made and on delivery, the price had been increased by £2,892. The defendant
refused to pay this. The Court of Appeal decided that the defendant's form had been accepted by
the claimant so the defendant's terms governed the agreement. Therefore, the claim to recover the
extra money failed.
McArdle [1951]
When Mr McArdle died, he left his wife a life interest in their house, after which it was to be given to
their children.
The widow and her three grown children all moved into the house. The wife of one of the sons made
voluntary improvements to the house valued a: £488. The other siblings agreed to reimburse their
brother for the work done. Later, however, a dispute arose and they refused to pay.
The Court held that the promise to pay was not legally binding since it was made after the work had
been done.
Spice Girls Ltd v Aprilia World Service BV (2000)
1
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