Zusammenfassung der Ressource
Contract law 1
- Contract
- An exchange of promises that can
be enforced
- Essential elements
- Offer
- Acceptance
- Consideration
- Intention to be bound
- Other elements
- Capacity- to contract
- Particular form
- Offer/ Invitation to treat
- Offer
- Anyone with legal capacity
can make an offer
- Writing
- Orally
- In contract
- Goods displayed on the shelf ina self
service shop represent an invitation to
treat. An offer is only made when the
customer presents the goods at
checkout.
- Invitation to treat
- Invitation to 'make an offer'
- Tender is classed as
an invitation to treat
- Difference between offer an
invitation can be difficult to
distinguish but depends on
intention of parties
- Carlil v Carbolic smoke ball
co (1892) (unilaberal offer)
- Communication to offer
- any method acceptable
- Taylor v Laird 1856
- Must be clear, unambigious
and capable of acceptance
- Compare £495 to about £500
- Offer remains open until
- End of stated period
- Death of offerer/ offeree
- Until rejected
- Withdrawn
- Unless counter offer made
- Revocation of offer
- May be withdrawn at any
time prior to acceptance
- Withdrawal must be
communicated
- Must reach oferee prior to
acceptance
- Byrne and Co V Van
Tienhoven 1880
- Acceptance of offer
- Must be communicated
- Orally
- Writing
- Conduct
(Brogdon V
Metropolitan Rly
Co 1877)
- Unqualified
assent to terms of
offer
- Silence cannot amount
to acceptance
- Felthouse v Binally 1862
- Counter offers
- If purpoted accepted, introduces new
terms or is different to offer, it becomes a
counter offer, this kills the original offer
- Mirror image rule
- Hyde V wrench (1840)
- Request for info/ clarrification is not a counter
offer, so original offer remains and is open for
acceptance
- Stevenson Jaques & co V Mclean 1880
- Battle of the forms
- Use of each parties
own standard terms
of business
- Butler machine tool Co ltd V Ex-cell-O
Corp ltd (1979) (last shot doctrine)
- Lord Denning MR: Found it most
cases where battle of the forms is used
that there is a contrast as soon as the
last of the forms is sent and recieved
without objection being taken to it.
- Chistery Joinery ltd V John
Mowlem & co (1987)
- Last shot wins
- Acceptance
- Acceptance is complete at the time a
letter of acceptance is posted
- Adams V Lindsell 1818
- Henthorn V Fraser 1872
- Consideration
- Essentials
- Gives benifit to another or some
detriment from the other
- Mutual exchange of promises
- Price of each others promise
- Need not to be adequate
- May be money, Goods, services, work
done, or a promise not to sue
- Characterised as factual benifit
or avoidance of factualdisbenifit
- William V Roffey & Nicholls 1990
- Past consideration
- No consideration
- You dug the garden for me
so I will buy you a beer
- Executed consideration
- Performed at the time of
making contract
- Here is 50p in exchange for the
newspaper
- Executory consideration
- Performed in future
- I promise to complete your
house by xmas next year
- Performance of an existing duty
- Stilk V Myrick
- Williams V Roffey Brothers & Nichols
- Part payment of a debt
- Pinnels case
- £8 10 S due nov 11
- £5 2S paid oct 1
- Foakes V Beer
- Matter of interest
- Intention to be bound
- If all essentials exist, usual
inference is that intention exists
- Execption is family arrangements
- Legal capacity/ personal capacity
- Execptions
- Minor
- Drunk
- Insanity
- Limit of power for corperations
e.g. public bodies
- Particular form
- Sale of land
- Hire purchase
- Contracts of guarentee
- Contract terms
- Categories of contract terms
- Express terms
- terms that have been specifically
stated and writeen down and agreed by
both parties involved in the contract
- Written down
- Orally agreed
- Implied terms
- Implied by custom
- Implied by courts
- In law
- In fact
- Implied by statute
- Conditions
- Warranties
- Implied by Custom
- Local custom
- Hutton V Warren 1836
- Agricultural lease
terminated by landlord
- Custom that work done in tilling, sowing and
cultiuvation crops not yet harvested would be paid for
- Not if express terms contracted custom
- Implied by Court
- Implied in fact
- The moorcock 1889
- Mooring/ low tide/ grounded/ damage
- Moor owner done nothing to
assertain whether river bed
adjacent was suitable
- Such a term was implied to
give business efficacy to the
contract
- Shirlaw V southern foundries 1939
- Officious bystander test
- Something thats so obvious it
goes without saying
- Implied in law
- Liverpool city council V Irwin 1977
- Lord Salmon found the landlord in no legal
duty to keep the lifts working and the staircase
lit
- Test is a necessity not reasonableness
- Construction examples
- Drake & Skull V Higgs & Hill (1995)
- Agreement of all matters except
daywork rates
- Contract with implied term that the
sub contractor would be paid a
reasonable sum
- Mitsui Babcock Energy V
John Brown Engineering
(1996)
- Failure to agree tests & liquidated damages
- Made a coherant & Workable contract
- Implied by Statute
- Examples
- Sale of Goods act 1979
- Supply of goods and services act 1982
- Building Act 1984
- HGCRA 1996
- DDM 2007
- Sale of goods act 1979
- S.13/ Goods must corespond
with their descriptions
- S.14/ (2) Satisfactory quality
- S.14/ (3) Fit for particular purpose
- S.15/ Sale by sample
- bulk of goods/ corresopond
with sample
- Defect free not aparant/
reasonable examination
- S.12/ Seller must have title to goods
- Supply of goods and
services act 1982
- S.2/ Implied warranty as to title
- S.4/ Implied term as to quality or fitness
- S.12/ Contract for the supply of a service
- S.13/ Reasonable care and skill
- S.14/ Carry out service within a
reasonable time
- S.15/ Pay a reasonable charge
- Contracts for work &
materials
- Young & Martin V
Mcmanus Childs (1969)
- Roofing tiles selected by
employers
- Suitable warranties, adapted to
the nature of contract should be
applied in contracts where mixed
elements of supply/ goods/ work
to be done
- Title to goods
- Aluminium industries V Romalpa (1976)
- Court of appeal upheld a clause which
prevented the passing of property in
goods until paid for
- Quicquick plantitur solo solo credit
- Some perculiarities within
construction contracts
- Sale of dwellings
- National house building council (NHBC)
- Defective premises act 1972
- Workmanlike or
proffessinal manner
- Proper materials
- Fit for habitation
- Housing act 2004
- Vendor to provide
energy performance
certificate
- Time for performance
- Time of the essence
cannot be implied
- Needs to be
express terms
- Time for completion can be stipulated
in construction contract although no
normally an essential element
- Remedy
- Common law
assertainment of
damages
- Liquidated damages for late
completion