Contract Formation

Biggs v Boyd Gibbons

Seller made an announcement in respect of his property. The Court decided this was an offer which could be accepted to form a contract.

Gibson v Manchester City Council

The Court decided that the council’s letter was not an offer. His formal application was the offer that the council could accept or reject.

Fisher v Bell

Flick knife on display in a shop window was not being “offered for sale” contrary to the Restriction of Offences Weapons Act.

Partridge v Crittenden

Protected wild birds were being advertised for sale, but the Court decided they were not, at this stage, being “offered” in breach of the law.

Harvey v Facey

H tried to buy the farm for £900 but could not as the reply was merely a reply to a request for information, not an offer.

British Car Auctions v Wright

The bidder makes the offer which the auctioner can accept. Lots available are ITT.

Carlill v Carbolic Smoke Ball Co

Court decided the advert was an offer, owing to the clear wording used, and that it could be anyone who bought the smoke ball. The deposit demonstrated willingness to be bound by the promise.

Inland Revenue Commission v Fry

Court decided that the Inland Revenue had no knowledge of the offer and so did not accept it by cashing her cheque.

Routledge v Grant

G offered house for sale for 6 weeks. 3 weeks in he changed his mind. This was an effective revocation of the offer.

Dickinson v Dodds

Communication of the revocation does not have to come from the offeror directly, but can come from another “reliable source”. The test is whether a reasonable person would consider the information accurate.

Hyde v Wrench

W offered to sell for £1000. H offered £950 and was rejected. He then tried to buy for original offer. Court decided that counter-offer ended original offer.

Ramsgate Victoria Hotel v Montefiore

No exact definition of reasonable time, but Court decided that 5 months was too long for M’s offer to buy shares to remain open.

Stevenson v McLean

Letter sent was not a counter-offer but a mere inquiry, therefore offer was still open to accept later.

Felthouse v Bindley

Court held that there was no contract as silence or inacitivty is not acceptance.

Brogden v Metropolitan Railway

Acceptance can take place by conduct - through continuing to perform the contract without any objection to the terms.

Yates v Pulleyn

Court decided the acceptance was effective - requirement of registered delivery was for the benefit of the offeree (rather than the offeror) so Y could take the risk of the ordinary post if he wished.

Adams v Lindsell

Acceptance letter was delayed in the post and the wool was sold to somebody else. Court decided there was a valid contract as the letter was placed in the post box and there had been no communication about revoking the offer.

Thomas v BPE Solicitors

High Court decided that the email took effect at 6pm Friday - the transaction could have been completed that evening and 6pm was deemed to be inside working hours.

Balfour v Balfour

The court decided that this was a domestic agreement, and as it had been made at an amicable point in their relationship, there was no intention to create a contract.

Merritt v Merritt

An agreement to send wife money and sign over the house if she paid off the outstanding mortgage was held to create a legally binding contract, as the parties were separated and about to get divorced.

Snelling v Snelling

The Court decided that the agreement was intended to be legally binding, given the context in which the agreement between the brothers was made.

Jones v Padavatton

At the time of the agreement, mother and daughter were very close and so the Court was satisfied that neither party had intended to create legal relations at the time.

Simpkins v Pays

Agreement between family members and their lodger over the sharing of winnings was legally binding, as the inclusion of a non-family m, member meant the relatives must have intended to create legal relations.

Wilson v Burnett

Suggestion of prior agreement was undermined while waiting for the results of the competition, the others repeatedly asked if she was “going to share”. Suggested an intention to create legal relations did not exist at that time,

Parker v Clark

The young couple successfully argued that they had a legally binding agreement. Selling their house and sharing the running costs of the shared home indicated that the agreement was intended to be legally binding.

Edwards v Skyways

An airline pilot was promised a payment by his company upon being made redundant, but the company failed to pay it. Court decided the promise was intended to be legally binding.

McGowan v Radio Buxton

The court decided this was an enforceable contract as “there was not even a hint that this would be a toy”. The competition was to promote the radio station, and there was a reasonable expectation that the prize would be a real car.