Offer and Acceptance

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Contract Mind Map on Offer and Acceptance, created by gabriellafearns on 29/04/2013.
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Mind Map by gabriellafearns, updated more than 1 year ago
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Created by gabriellafearns over 11 years ago
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Resource summary

Offer and Acceptance
  1. FORMATION OF CONTRACT
    1. Pre-Contractual phase
      1. British Steel Case
        1. Held -- there was no contract, they had failed to agree a price and the issue of liablity. HOWEVER did extra-contractual cause of action restitution
          1. NB/ Ball contends in LQR 1993 - law should take a more flexible approach however Andrews says this would ruin freedom of contract.
        2. RTS v Muller
          1. there was a 'subject to contract' bar --> SC held that where the parties completed 3/4 of the tasks they implicitly waived StoC bar.
            1. Lord Clarke - says StoC is not always conclusive - may find a contract where (i) significant performance (ii) loose ends tied up.
        3. Agreements prior to formation of contract NB English law X recognise 'good faith'
          1. Walford v Miles
            1. Good faith would be too vague and would require the courts to inquire - drenched in subjectivity.
              1. Could have a 'lock out' clause if period is fixed.
          2. Main aspects of proposed transaction
            1. Queensland Electric v Hope Colleries
              1. 15 yr supply contract - said after 5 years provisions shall continue - tried to argue that this was no more than an agreement to agree - held OBJ.
            2. ANCILLARY AGREEMENTS
              1. Petromec v Petroelo
                1. suggests a 'built-on' negotiation clause may be valid.
                  1. Longmore LJ --> says (i) uncertainty (ii) termination (iii) diff to assess loss HOWEVER if this is ancillary certainty is dealt with in main agreement
            3. OFFER
              1. Clear unequivocal willingess to be bound upon the offerees acceptance
                1. Contrast - INVITATION TO TREAT
                  1. British Pharmaceutical v Boots - held that taking off shelves not acceptance at most it is an offer to the cashier.
              2. ACCEPTANCE
                1. (i) Awareness of the offer Taylor v Allon - offered temp insurance and didnt know
                  1. (ii) Must not have forgotten about the offer Gibbons v Proctor
                    1. NB/ action does not have to be in response to offer Williams v Carwardine - told them information so wouldn't go to hell on death bed.
                2. Sequential analysis Gibson v Manchester CC
                  1. PROBLEM OF SILENCE
                    1. Felthouse v Bindley - silence will not suffice, vulnerable and equivocal.
                      1. Rust v Abbey Life - failed to cancel insurance for 7 years - held acceptance
                        1. Nissan v Nissan - Exchanged Faxes , delivering CofA held actions spoke as loud as words
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