CONTRACT
LAW
NOTES
, Rules and theory
- A contract is a voluntary agreement between two parties enforceable by law, based
on the exchange of promises or actions
- Parties are still referred to as the claimant and defendant
- A contract is only enforceable in law if and when its properly formed, this shows
that:
o Not all agreements are contracts
o Only parties to a contract can enforce its requirements (privity)
Formation needs:
- Offer and acceptance
- Consideration
- Intention to create legal relations
All the above must be proved by the claimant
, Offers
The starting point of a contract, it must be definite and communicated
In a contract, there are two parties,
- The offeror – the party making the offer
- The offeree – the party to who the offer is made
An offer is a proposal or promise showing willingness to contract on definite terms.
Whereas an invitation to treat shows willingness to negotiate a contract, it's not definite.
Gibson v Manchester city council - “the council may be prepared” is an invitation to
treat as it’s not definite
Partridge v Crittenden – a response to the ad in the newspaper would then make it
an offer
Types of contracts:
Unilateral contract (Carlill v Carbolic smoke ball) - a one-sided contract in which
the offer can be accepted e.g. reward for a lost pet
Bilateral contract – a mutual exchange of promises
Goods in a shop window are classed as an invitation to treat:
They become an offer when accepted or declined by the scanner or checkout
assistant
Fisher v Bell – knives were a display, therefore not being offered
Pharmaceutical society v Boots – goods in a shop window where an invitation to
treat until brought to the counterWhat
British car auctions v Wright – lots at an auction were an invitation to treat until the bidder
makes an offer that’s accepted by the auctioneer
Harvey v Facey – a request for information is NOT an offer
Who can make an offer?
Partnerships
Companies
Individuals
An agent of the offeror
LAW
NOTES
, Rules and theory
- A contract is a voluntary agreement between two parties enforceable by law, based
on the exchange of promises or actions
- Parties are still referred to as the claimant and defendant
- A contract is only enforceable in law if and when its properly formed, this shows
that:
o Not all agreements are contracts
o Only parties to a contract can enforce its requirements (privity)
Formation needs:
- Offer and acceptance
- Consideration
- Intention to create legal relations
All the above must be proved by the claimant
, Offers
The starting point of a contract, it must be definite and communicated
In a contract, there are two parties,
- The offeror – the party making the offer
- The offeree – the party to who the offer is made
An offer is a proposal or promise showing willingness to contract on definite terms.
Whereas an invitation to treat shows willingness to negotiate a contract, it's not definite.
Gibson v Manchester city council - “the council may be prepared” is an invitation to
treat as it’s not definite
Partridge v Crittenden – a response to the ad in the newspaper would then make it
an offer
Types of contracts:
Unilateral contract (Carlill v Carbolic smoke ball) - a one-sided contract in which
the offer can be accepted e.g. reward for a lost pet
Bilateral contract – a mutual exchange of promises
Goods in a shop window are classed as an invitation to treat:
They become an offer when accepted or declined by the scanner or checkout
assistant
Fisher v Bell – knives were a display, therefore not being offered
Pharmaceutical society v Boots – goods in a shop window where an invitation to
treat until brought to the counterWhat
British car auctions v Wright – lots at an auction were an invitation to treat until the bidder
makes an offer that’s accepted by the auctioneer
Harvey v Facey – a request for information is NOT an offer
Who can make an offer?
Partnerships
Companies
Individuals
An agent of the offeror
