RULES AND THEORY - contract law specific
A contact is an agreement made by two parties and is enforceable by law. It is based on a
promise, even though some promises are not always contractual. Contract law closely
examines the promises which can be enforced from those which cannot. It requires offer
and acceptance and intention to create legal relation and consideration which were
established by key landmark cases like carlil v carbloc smoke ball.
Freedom of contract theory which originates in laissez-faire which promotes that parties
should be free to make a contract on any terms they choose as they are the best judges of
the own interest and desires they want in the contract
Contract reflects the belief of personal freedom, allowing individuals to agree on terms
without any interference, and strengthen autonomy which is the idea that parties should be
able to enter a contract on their free will and highlights the importance of fairness between
parties agreeing on terms,
OFFER AND ACCEPTANCE
An offer is a clear proposal made with the intention to create a legally binding agreement
between parties. An offer is only valid if it
- Create a legal relationship which is needed - intention to create legal relations
- Must be certain, definite and clear
- Must be told to the offeree so the person who receives the detail
- Can be subject to any conditions
Person making an offer is an offeror Person accepting the offer is an offeree
An offer can be
Expressed - an offer can be made through words or spoken conduct
An offer must be communicated to the offeree or it cannot be accepted as stated in taylor v
laird
Implied - actions or conduct of the parties could make a potential contract
An offer can be accepted through everyday conduct as stated in Wilkie v London Transport
1947 -
Bilateral - an offer made to a specific group or group of people
For a bilateral offer there must be a clear offer and acceptance, otherwise it is only an
invitation to treat as seen in the case of gibson v manchester cc as it was only an invitation
to begin negotiation, so it could not form a binding contract.
Unilateral - an offer proposed to the public and can be accepted by anyone if they meet the
requirements of the contract.
Communication of acceptance is not needed for unilateral offers as it can be accepted by
performing the required act intended in the contract as established in carlil v carbloc smoke
ball
, For a contract to be legally enforceable it must be certain and definite to be legally
enforceable as stated in gunthing v lynn
Must create legal relation as agreements made in a domestic or social context are presumed
not legal binding because the parties did not intend for any legal relation to be created which
is needed to make an offer valid as stated in the case of Balfour v Balfour - where wife sued
for husband for not paying monthly allowance after he promised but was not successful as it
was a domestic agreement and no iclr
An offer must be communicated to the offeree as stated in taylor v laird
Invitation to treat
An invitation to treat is not an offer, it is an invite for a party to make an offer like with goods
on a display in a window as seen in the case of fisher v bell where a knife was on display
and was an invitation to treat as it was an invite for potential customers to make an offer to
buy as there was information about the price of the knife.
Revocation
Revocation is only effective at the point it is received by the offeree
An offer can be revoked by
The time limit expiring as if an offer specifies a deadline for the offer to be accepted then
after that deadline the offer will lapse so become terminated.
Based on the circumstance of the contract, the offer will lapse after a considerable amount
of time has passed even though there is no time limit mentioned in the contract. . An offer
may be revoked if it is not accepted within a reasonable time as established in ramsgate
hotel v montefiore
The offeror may withdraw the offer before accepting anything which will make the offer lapse.
Revocation must be communicated directly or indirectly as stated in the case of payne v
cave
Revocation only effective when communicated to the offeree before they accept it as stated
in byrne v tienhoven
A promise not to revoke an offer is not binding unless consideration has been given to keep
the offer open for a specified period is a bare promise nudum pactum - dickson v dodds
Revocation may be carried out by a reliable third party - Dickinson v Dodds
Revocation of an unilateral offer must occur before acceptance commence - errington v
errington woods
An offer can be revoked by
- Conditional offers where the offer is revoked if the offer fails to fulfil the conditions
mentioned in it
A contact is an agreement made by two parties and is enforceable by law. It is based on a
promise, even though some promises are not always contractual. Contract law closely
examines the promises which can be enforced from those which cannot. It requires offer
and acceptance and intention to create legal relation and consideration which were
established by key landmark cases like carlil v carbloc smoke ball.
Freedom of contract theory which originates in laissez-faire which promotes that parties
should be free to make a contract on any terms they choose as they are the best judges of
the own interest and desires they want in the contract
Contract reflects the belief of personal freedom, allowing individuals to agree on terms
without any interference, and strengthen autonomy which is the idea that parties should be
able to enter a contract on their free will and highlights the importance of fairness between
parties agreeing on terms,
OFFER AND ACCEPTANCE
An offer is a clear proposal made with the intention to create a legally binding agreement
between parties. An offer is only valid if it
- Create a legal relationship which is needed - intention to create legal relations
- Must be certain, definite and clear
- Must be told to the offeree so the person who receives the detail
- Can be subject to any conditions
Person making an offer is an offeror Person accepting the offer is an offeree
An offer can be
Expressed - an offer can be made through words or spoken conduct
An offer must be communicated to the offeree or it cannot be accepted as stated in taylor v
laird
Implied - actions or conduct of the parties could make a potential contract
An offer can be accepted through everyday conduct as stated in Wilkie v London Transport
1947 -
Bilateral - an offer made to a specific group or group of people
For a bilateral offer there must be a clear offer and acceptance, otherwise it is only an
invitation to treat as seen in the case of gibson v manchester cc as it was only an invitation
to begin negotiation, so it could not form a binding contract.
Unilateral - an offer proposed to the public and can be accepted by anyone if they meet the
requirements of the contract.
Communication of acceptance is not needed for unilateral offers as it can be accepted by
performing the required act intended in the contract as established in carlil v carbloc smoke
ball
, For a contract to be legally enforceable it must be certain and definite to be legally
enforceable as stated in gunthing v lynn
Must create legal relation as agreements made in a domestic or social context are presumed
not legal binding because the parties did not intend for any legal relation to be created which
is needed to make an offer valid as stated in the case of Balfour v Balfour - where wife sued
for husband for not paying monthly allowance after he promised but was not successful as it
was a domestic agreement and no iclr
An offer must be communicated to the offeree as stated in taylor v laird
Invitation to treat
An invitation to treat is not an offer, it is an invite for a party to make an offer like with goods
on a display in a window as seen in the case of fisher v bell where a knife was on display
and was an invitation to treat as it was an invite for potential customers to make an offer to
buy as there was information about the price of the knife.
Revocation
Revocation is only effective at the point it is received by the offeree
An offer can be revoked by
The time limit expiring as if an offer specifies a deadline for the offer to be accepted then
after that deadline the offer will lapse so become terminated.
Based on the circumstance of the contract, the offer will lapse after a considerable amount
of time has passed even though there is no time limit mentioned in the contract. . An offer
may be revoked if it is not accepted within a reasonable time as established in ramsgate
hotel v montefiore
The offeror may withdraw the offer before accepting anything which will make the offer lapse.
Revocation must be communicated directly or indirectly as stated in the case of payne v
cave
Revocation only effective when communicated to the offeree before they accept it as stated
in byrne v tienhoven
A promise not to revoke an offer is not binding unless consideration has been given to keep
the offer open for a specified period is a bare promise nudum pactum - dickson v dodds
Revocation may be carried out by a reliable third party - Dickinson v Dodds
Revocation of an unilateral offer must occur before acceptance commence - errington v
errington woods
An offer can be revoked by
- Conditional offers where the offer is revoked if the offer fails to fulfil the conditions
mentioned in it
