Contract Law Brief Summary Page
Workshop 1: Agreement (Offer and Acceptance)
Agreement = Offer + Acceptance.
Offeror = person making offer; Offeree = person receiving offer.
Bilateral contracts: mutual obligations.
Unilateral contracts: offer accepted by performing an act.
Offer vs Invitation to Treat: invitation is an invitation to negotiate, not
an offer.
Termination of offer: rejection, lapse, revocation.
Acceptance must be unqualified (mirror image rule), communicated,
and in a valid manner.
Postal rule: acceptance effective when posted (not for revocation).
Instantaneous communications acceptance effective when received.
Objective test: whether a reasonable person would see a binding
contract.
Workshop 2: Consideration, Variation, Intention to Create Legal
Relations (ICLR) & Capacity
Consideration = the price for a promise; must be something of value
exchanged.
Types: executed (already done), executory (to be done).
Past consideration is generally invalid except if done at promisor’s
request with expectation of payment.
Consideration must move from promisee.
Must be sufficient but need not be adequate.
Existing contractual duty is not good consideration unless exceeded or
practical benefit gained.
Promissory estoppel may enforce promises lacking consideration.
ICLR: presumed in commercial contracts; generally absent in
social/domestic agreements.
Capacity: adults have full capacity; minors and mentally incapacitated
persons have limited capacity.
Necessaries and beneficial contracts binding on minors.
Mental Capacity Act 2005 governs capacity.
Intoxicated persons liable only for necessaries.
Workshop 1: Agreement (Offer and Acceptance)
Agreement = Offer + Acceptance.
Offeror = person making offer; Offeree = person receiving offer.
Bilateral contracts: mutual obligations.
Unilateral contracts: offer accepted by performing an act.
Offer vs Invitation to Treat: invitation is an invitation to negotiate, not
an offer.
Termination of offer: rejection, lapse, revocation.
Acceptance must be unqualified (mirror image rule), communicated,
and in a valid manner.
Postal rule: acceptance effective when posted (not for revocation).
Instantaneous communications acceptance effective when received.
Objective test: whether a reasonable person would see a binding
contract.
Workshop 2: Consideration, Variation, Intention to Create Legal
Relations (ICLR) & Capacity
Consideration = the price for a promise; must be something of value
exchanged.
Types: executed (already done), executory (to be done).
Past consideration is generally invalid except if done at promisor’s
request with expectation of payment.
Consideration must move from promisee.
Must be sufficient but need not be adequate.
Existing contractual duty is not good consideration unless exceeded or
practical benefit gained.
Promissory estoppel may enforce promises lacking consideration.
ICLR: presumed in commercial contracts; generally absent in
social/domestic agreements.
Capacity: adults have full capacity; minors and mentally incapacitated
persons have limited capacity.
Necessaries and beneficial contracts binding on minors.
Mental Capacity Act 2005 governs capacity.
Intoxicated persons liable only for necessaries.
