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All Contract Cases
Exam of 17 pages for the course Solution at Solution (All Contract Cases)
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lOMoARcPSD|11700591ALL Contract Cases
Law Of Contract A (University of Wollongong)
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Contract Cases:
CASE PROCEDURAL: FACTS ISSUE D ECISION RATIO WHAT IT LINKS TO:
Weeks 1 & 2 Offer
Gibson v M. County Court: Gibson was approached by MCC to Was there an Unanimously in MCC favour, Offers must be: clear and What is an offer? An offer
Manchester In favour of purchase the house he was renting by offer? Can 'may there was no contract. definite promise to be needs to be a clear promise.
City Council Gibson. Claimed the council, through a scheme. G fills out be willing to sell' There was no contract. It bound without any further It will be judged objectively
[1979] 1 WLR there was a the letter and sends back. The Council constitute an was not legally enforceable negotiation. to see if the parties thought
294 contract. changes parties and no longer wants to offer? as the letter: 'may be willing it was a contract.
Court of Appeal: sell house. to sell' was too vague. It was Termination of contract? Is
Found in Gibson's an offer to negotiate. a question of price a
favour, 2 to 1. negotiation? No. Bilateral
House of Lords: Contract: a promise in
exchange of a promise. e.g.:
car for money.
Carlill v There was a Carbolic claimed their product prevented Was there a A unilateral contract existed. A unilateral contract can be Unilateral Contract: A
Carbolic Smoke binding contract. influenza and colds. In an ad they offered contract Mere puff was dismissed as made to the world; promise in return of
Ball Company Carlill won at all a 100 pound offer of the product did not between the Carbolic showed sincerity in however, an offer can only performance. Mere Puff: so
[1893] 1 QB levels of court. work for the purchaser. They said they parties or was it depositing 1,000 pounds be made to the person who obviously 'out there,
256 deposited 1,000 pounds into a bank to 'mere puff'? into the bank for rewards. accepts the offer. E.g.: lost exaggeration' that only the
schrew their offer. Mrs Carlill used the dogs for a reward. gullible would believe. Ad
ball and contracted influenza. Idem: 'One of mind’ or see
things in the same way -
seeing a contract has been
made. Magic moment of
formation: acceptance of
the offer
MacRobertson Customer Purchases ticket, ticket Was the airline At the time the ticket is At the time the ticket is Offer & Acceptance: ticket
Miller Airline v contains terms and conditions = airline ticket an issued it is an offer and then issued it is an offer and then purchase is offered by
State Taxation has the right to cancel any flight...e.g.: agreement and after a reasonable point of after a reasonable point of customer; it is accepted
(WA) (1975) weather. Commission charged 25c in Tax therefore liable time or when boarding, that time or when boarding, that after a reasonable time or by
133 CLR 125 in all agreements. to be taxed? is when the offer becomes is when the offer becomes actually boarding.
accepted. accepted.
Pharmaceutica Boots organised a self-service and the Was the store No, the offer is made by the Invitations to treat are not Invitations to Treat: are
l Society of store was arranged so the customers making an offer customer when they place offers, they invite the shop sales, auctions,
Great Britain v could choose items. Tills were supervised to sell goods on the items in front of the customer to make an offer tenders, ticket cases and
Boots Cash by pharmacist, under s18(1) of the UK the shelves? cashier or at the counter. to purchase goods. The store electronic transactions. They
Chemists Pharmacy & Poisons Act 1933. Customer Where does the The showing of goods was then accepts the offer by invite the purchaser to
(Southern) picks up item makes purchase. offer and an invitation to treat, where selling them the goods. offers to purchase goods,
[1953] 1 QB Customers need to purchase drugs acceptance take the customers made the the offer is made when the
401 without supervision of a pharmacist. place? offer to purchase the goods goods are placed in front of
Boots was charged with being in breach where the pharmacist could the counter. The store can
of the Act for not supervising purchases. reject the offer. then accept or reject their
offer at the counter.
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Australian AWM bought lots of wool for a couple of Was the no, it is not an offer as there For there to be a contract, Consideration: 'an act or
Woollen Mills months without subsidy. Each purchase governments is no consideration for the there needs to be forbearance of one party, or
Pty Ltd v was subsidized by the Commonwealth. subsidy a governments, they are not consideration, that is a promise thereof, [is] the
Commonwealt There was an incentive by the contract? receiving a gift in return for benefit and a detriment for price for which the promise
h (1954) 92 Commonwealth to purchase wool. the discount. It was not a the two parties, the offeror of the other is bought'. The
CLR 424 Limited quantity of the subsidy (saying to unilateral contract either as and offeree. In AWM there principle: to amount to an
act now). Government requires payback, AWM would have bought was no benefit for the offer, there needs to be an
AWM complies and gives back the the wool regardless of the Government. exchange, the offeror has to
subsidy, now AW wants their subsidy subsidy. be getting something.
back. Without the exchange, it is a
conditional gift
Govt. contract: ‘good will’
Week 3 Termination of an Offer
Goldsbrough, Q wanted to sell property to the Could Quinn An option means nothing If consideration is given for Termination of an offer: 'An
Mort v Quinn applicant, G. Q had made an offer, with revoke his unless it has consideration. an option, the option cannot offer may be withdrawn at
(1910) 10 CLR the option to the application without offer? Could the e.g.: I'll pay you $5 if you be revoked by the offeror. any time before acceptance'
674 realizing he had made a mistake in the Quinn revoke hold it for 1 week. The court An option consists of a (Golds Mort v Quinn) Offers
offer. Q then reneged the offer before the offer after found that the option was promise founded on can be revoked at any stage
the option time was over. G is appealing having accepted not revocable and valuable consideration to until the offeree accepts the
believing that Q is liable. The option of 5 consideration Goldsbrough had accepted sell. Goldsbrough had offer. If the is an option with
shillings was paid. The option was for keeping the the offer before the due accepted the offer before consideration, the offeror
accepted, meaning the option was open offer open for lapse of the option, the end of the week. cannot revoke the offer.
for one week. before the option lapsed, one week? therefore there was a Because there was After the stated time of
Q tried to revoke his offer and sell to contract. Just because you consideration of 5s the option, the offer lapses.
another party. G sought specific promise to keep it open contract cannot be revoked
performance. means nothing; unless they before its expiry period.
have accepted money, then
they have to keep it open.
The court found that there
had been a contract formed
between the parties.
Mobil Oil Trial judge: found Mobil's scheme offered franchises who Can an offer in a There is no offer, it was too You can revoke even if the Estoppel: Assumption – 6
Australia v that once an score 90% or better in the Circle of unilateral vague. performance has begun, years for the circle of
Wellcome offer was made Excellence judging in each of the six contract be Should Mobil be prevented however they cannot unless excellence Inducement – if
International that required years following 1991 would be granted revoked if the from relying (drawing back) there is an implied ancillary you earn 90% over the Circle
(1998) 81 FCR performance, the 9-year renewal at no cost. Mobil other party has on its promise? No because contract not to revoke the of Excellence – Reliance –
475 offer could not abandoned the Circle of excellence begun there was no detriment. offer, OR estoppel. they have cleaned up and
be revoked if the judging so the franchisers couldn't be performance? Why wasn’t equitable made them look better.
party had started judged. estoppel found? Because Detriment? There was no
to perform. there was no detriment to detriment as the shops were
HCAt: Ffound in the franchiser, they painted improved. Should Mobil be
favour of Mobil and 'spruced up' there prevented from relying
Oil. stations. (drawing back) on its
promise? No because there
was no detriment. Why
wasn’t equitable estoppel
found? Because there was
no detriment.
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