AGS
Contract Law
Master Revision
Friday 10th May
For this revision document:
Sub-headings to be in RED
Cases/Articles/Authors/Judges to be in GREEN
Important points italicised/bold in RED or PURPLE
Font is Arial - 10 for normal writing and 12 for sub-headings.
To begin this document, we should work from the beginning of each module, as we
work through, all seminars need to be completed along with their required cases, all
lectures need to be seen/noted and textbook chapters need to be read/noted.
Should follow chronological lecture order, with cases explained as they are
encountered and extra cases (those not covered by lecture/textbook) after the
textbook notes but before seminar notes
In this vein, each module should follow a “chapter” layout, which deals with the whole
subject, drawing on cases, lecture notes, seminar notes, textbook + feedback.
Read textbook chapters as per seminar reading list.
The key is to be succinct and informative for revision, lengthy quotes won’t be
needed but should know why each case is useful and where it applies, as well as
the most important quotes from the cases.
Should make use of splits in the page and other formatting to make the revision look
as visually appealing as possible. Could use a similar format as last year with
“pasting” important lecture slides. However, this could easily make the document too
large so be mindful.
In making the master document, I’ll start by including notes on each learning area
i.e. 1. Key Facts, 2. Foundational Knowledge, 3. Reading Knowledge, 4.
Seminar Notes
Base subject titles off seminar subjects (i.e. Sexual Offences may be 2-3 lectures but
one subject)
Focus on subjects covered by seminars.
Contents:
1
,The subject-matter of the module is divided into sections broadly following a contract’s
lifecycle from formation of the agreement to its end.
Section 1: Introduction to Contract Law
Section 1 provides a brief introduction to the role of contract law in society, its key ideas
and relationship to other areas of law (particularly the law of tort). Pg. 3
Section 2: Creating a Contract 1: Offer and Acceptance
Section 2 is concerned with whether the parties have reached an agreement. It examines
the rules relating to offer and acceptance and the objective test of agreement. Pg. 13-35
Section 3: Creating a Contract 2: Ensuring Enforceability
Section 3 is concerned with ensuring an agreement is legally enforceable, focusing on the
doctrines of consideration and intention to create legal relations. Pg. 35-58
Section 4: Problems in the Agreement Process
Section 4 considers some of the problems that may arise during the agreement process – in
particular, misrepresentation, mistake, undue influence and duress. Pg. 58-79
Section 5: The Contents of the Agreement
Section 5 is concerned with the content of contracts, that is identifying the terms of the
contract. It will examine the rules relating to express terms, incorporation of standard
terms, implied terms and unfair/excluding and limiting terms. Pg. 79-95
Section 6: Interpreting, Performing and Changing the Agreement
This section considers various issues surrounding performance of the agreement – who can
enforce it (doctrine of privity of contract); working out what the contract means
(interpreting the contract) and changing the agreement (the role of promissory estoppel
and variation). Pg. 79-95
Section 7: When Things Go Wrong 1
Section 7 considers what happens when things go wrong with the contract performance. It
considers when one party may be able to terminate (or end) the contract for the other’s
breach of contract and what happens when the contract becomes impossible to perform
(frustration of the contract) Pg. 95-114
Section 8: When Things Go Wrong 2
This section is concerned with the various remedies for breach of contract. It examines the
rules relating to discharge and breach of contract, the main damages remedy, the
availability of specific performance, actions for an agreed sum and other stipulated
remedies. Pg. 114-136
2
, Section 1: Introduction to Contract Law
Section 1 provides a brief introduction to the role of contract law in society, its key ideas and relationship to
other areas of law (particularly the law of tort).
To be completed after main subject areas/no seminar
Section 2: Creating a Contract I - Offer & Acceptance
Section 2 is concerned with whether the parties have reached an agreement. It examines the rules relating to
offer and acceptance and the objective test of agreement.
Key Facts
● Agreement is normally determined by the existence of offer and acceptance.
● You should ensure you can distinguish between bilateral agreements (promise in
exchange for promise) and unilateral agreements.
● An offer is a definite promise to be bound, without more, if the offeree agrees to
the offer terms and must be distinguished from an invitation to treat which is an
invitation to negotiate or make offers.
● All responses must be communicated in order to be effective. The correct
communication rule must be used.
● Acceptance is the final and unqualified agreement to all the terms contained in the
offer—and thus must be in response to the offer. It follows that adding or
amending an offer term amounts to a counter-offer which itself constitutes an offer
and is not an acceptance. A counter-offer also destroys the original offer so that it
is no longer available for acceptance. Counter-offers must be distinguished from
requests for further information before deciding whether to accept. Requests for
further information do not have the effect of a counter-offer.
● Acceptance must be actually communicated (operates on receipt) although postal
acceptances are effective on posting (operate on dispatch). The postal rule can be
avoided and it may even be possible to overtake a postal acceptance with another
communication.
● Actual communication in the case of non-instantaneous communications using
instantaneous means (e.g. leaving messages on telephone answering machines)
depends on who has the onus of communicating and the question of fault. In the
case of communications to businesses which are not instantaneous, the point
when they become effective depends on what the parties would reasonably expect
so that communication to the machine (business communications sent during
office hours) will be actual communication. Communication on the next working
day is to be anticipated where messages are sent to businesses outside office
hours.
● Revocation of an offer can occur at any time before acceptance and in the context
of unilateral offers this will generally mean before the offeree has started to
perform.
● Revocation of an offer must be communicated to the offeree (although need not be
communicated by the offeror) and communication via the same channel as the
offer will suffice where the revocation relates to a unilateral offer to the whole
world.
3
, Foundational Knowledge
Termination of Offer
● Revocation in bilateral contracts
● Offeror can revoke or withdraw his offer at any time BEFORE acceptance
o Routledge v Grant (1828)
● Revocation must be communicated to the offeree, but can be done through a third party
Dickinson v Dodds (1876)
Hearing from Dodds’ neighbour was good enough to revoke that offer, as he sold to someone else on
Thursday. Dickinson is allowed to sell at any time, even if he said he wants to hear from Dodd by Friday – it
doesn’t necessarily matter that he said that because it’s not legally binding unless all other contractual
ingredients are agreed.
o therefore if you give an option to someone, this isn’t binding unless all the separate
requirements of the contract are there
● Offeror can revoke even if time limit for acceptance has not expired (unless forming part of
a separate contract)
● Postal rule doesn’t apply to revocation by letter → contract is created when the letter goes
into the mail
o Applies to acceptance but doesn’t apply to revocations → effective only when
received by the offeree
● Byrne v Van Tienhoven [1880]
o Offer – October 11
o Received – October 11
o Acceptance sent immediately
o Revocation sent – October 8
o Revocation received – October 20
o Contract has been already formed
Therefore, the acceptance stands, not the revocation.
● Revocation in unilateral contracts where the offer is directed to specific individuals:
o Requires a performance of an act
Errington v Errington [1952] - Acceptance of a Unilateral Contract
1. Dad bought a house for son and his wife
2. Told them they could keep the house if they paid the mortgage fees
3. Dad passed away and his executors tried to sell the house
4. The executors said this was a unilateral agreement, they said they can take the house as the
mortgage payments weren’t completed, therefore no contractual obligation.
5. Courts said the executors were right, however, once they started the payments, a
secondary contract came into existence that the offeror would not revoke the offer
6. Any attempt to do so would be a breach of the secondary collateral contract
7. If they stopped paying, then the executors could revoke the offer
4
