Contract Law I

Contract Law

an agreement between 2 or more parties

An agreement =

Offer + acceptance

are all obligations/terms contractual ?

no

Whatrole does the govermnet play in conracts between private entities ?

They are inolved when something goes wrong i.e. is not fulfilled or breached by one of the parties

Privy of contract

A contract is private between the parties who made it

Voidable contracts

contracts capable of being rescinded

Void contract

when a contract is a nullity

Unenforceable contract

a contract that cannot be enforced in court so it technically void

Private Autonomy

What are some exemptions to the rivity rule

Agency and contracts

Agency

a legal relationship between an agent who is a person having the authority or capacity to create legal relations between a principal and third parties

Who is an agent?

The person who has the authority to act on behalf of the principal and consents to do so

Describe the Contracts (Rights of 3rd Parties ) Act 1999

An external party might still have a right to pursue a faulty party in court.

Name the essential elements a contract must have to be valid

Agreement, Consideration, Intention to create legal relations, Formalities, Capacity, Certainty

agreement

offer and acceptance

explain consideration

refers to something of value that is exchanged between the parties involved in a contract. This can be money, goods, services, or even a promise to do

why is Consideration an important element of a contract ?

serves as the "bargained-for exchange" that distinguishes a contract from a mere promise.

Explain Intention to create legal terms

..

Formalities

refer to the specific procedures, steps, or requirements that must be followed in order for a legal act, contract, or document to be valid and enforceable.

What are the purpose of formailities ?

ensure that legal agreements are carried out in a standardized manner- parties involved understand their rights and obligations.

Explain how Capacity relates to making enforceable contracts

outlines if a party is able to enter into an agreement e.g under 18's cannot buy a house

Explain what certainty refers in contract law

There must be certainty of the terms and understanding of characteristics of the offer

Explain genuineness of consent

describes how a contract is a nullity of the person was forced/pressured to enter into an agreement (duress)

Duress is

constraint illegally exercised to force someone to perform an act.

For an agreement to be valid what is needed ?

a valid offer and a valid acceptance

A valid offer is

clear, precise, unconditional, it must contain all the terms

offeror

the party making the offer

offeree

the party to whom the offer is made, they accept/reject the offer

What does Pre-Contractual negotiations refer to ?

discussions and exchanges that take place before entering into a formal, legally binding contract (parties explore terms,conditions and MI)

Invitation To Treat ITT

statement indicating willingness to receive offers or negotiation - Harvey v Facey

Name an important Contract Law case that explores the concept of ITT, explain it

Harvey v Facey 1893

H asked F if he would sell the property and to inform M of the lowest selling price, F responded the lowest price is 900 and H said he'd buy it at 900, when F refused to sell H could not enforce specific performance of contract since there was not one

What was the ruling on H v F ?

There was no valid offer in the case but just an invitation to treat so H could not enforce specific performance from F because there was essentially no contract.

An agreement is

is the meeting of offer and acceptance. A valid offer must be clear, precise, and unconditional. If one or more of such features is not fulfilled, then there is not a valid offer but an invitation to treat (Harvey v Facey)

What is an ITT w/ examples ?

the first step in contractual negotiations.

E.g. goods in shop window (Fisher v Bell) or goods on shop shelf (Pharmaceutical Society v Boots Chemists) or advertisements (Partridge v Crittenden).

How and when can an offer be withdrawn ?

An offer can be withdrawn before acceptance. Revocation can be made at any time before acceptance. Revocation must be communicated to the offeree (Byrne v Van Tienhoven).

What is a Counter Offer and what is its legal effect?

A counter offer is a new offer (Hyde v Wrench). This is the effect of a counter-offer, namely it represents a new offer by which the original offeror becomes the new offeree.

4. What is the communications rule for acceptance, and what exceptions are there?

Acceptance must be clear and without reservation. It must accept all the terms of the offer, and it must be communicated to the offeror (Felthouse v Bindley). Silence or failure to act cannot constitute acceptance.

Explain the conditions of the Postal Rule

Adams v Lindsell, acceptance occurs when a letter is posted, not when received. However, the postal rule does not apply to telefax or fax or any other means of instantaneous communication (see Entores v Miles Far East Corp.)

Consideration

is the price of the agreement and that consideration must be 'something of value', not necessarily money.

6.Explain the differences between bilateral and unilateral contract.

both are made by 2 parties BUT in a unilateral contract or agreement, acceptance occurs without being communicated to the offeror, but simply by accepting to perform the specific conduct requested by the offeror in its offer (see Carlill v Carbolic Smoke Ball).