CONTRACT LAW SEMINAR NOTES
CREATING A CONTRACT 1 – REACHING AN AGREEMENT
Identify 3 functions that contract law performs in society: (default status
of English contracts and generic rules can be overridden by expressed
terms of a specific contract)
Facilitates trade deals as sometimes social sanctions are not
sufficient (reputation irrelevant if no future trade deals coming) -
allows a bit of risk taking if partner isnt that reliable because you
know you can rely on terms to legally protect you
Need deferred exchange instead of instantaneous contract (credit
card needs contract to ensure reliability of agreement)
Saves time/trouble as strangers involved so need more security which
contracts provide
Encourage specialisation/division of labour to promote enterprise -
enables subcontracting as parties know they can rely on the contract
(important in capitalist economy)
Protect weakest party - in consumer contracts the consumer is the
vulnerable one because they just accept the terms
Social norms are a way to ensure that people adhere to obligations and
these are not legally binding
Has Ari made a contract with Bella, David, both or neither? You need to be
able to explain the conclusions you have reached and the case law
authorities (or contract law rules) you have relied on in reaching your
conclusions. If there are issues that you are unsure about, make a note of
these and why they are difficult.
Ari made a contract with Bella because:
Postal Rule Exception -
, =acceptance takes place when letter of acceptance enters post-box
which occurred on 8th May before offer expired or David sent his
email of acceptance (came about from Adam v Lindsell 1818)
It was reasonable for Bella to use post as means of acceptance
and from report she had the correct address/postage
Rule applies even if letter lost in post and not received by offeror
(contract is still binding)
Ari can't revoke/make binding contract with David once Bella has
accepted/posted letter (Byrne v Van Tienhoven 1880)
Adams v Lindsell - accepted but because letter took too long to
come back the offeror sold wool elsewhere (was sued)
Emails - acceptance occurs when it is communicated (NOT sent)
eg during office/working hours (ambiguous to when
'communicated' may be - Brimnes, 'acceptance communicated
when it could be read not when it IS read) - bella sent an email of
confirmation 1 hour before the normal end of office hours on a
weekday so this is acceptable even with ambiguous law
In a problem question make sure you know which party you are trying to
advise and structure your answer. Don’t discuss facts that are not
disputed. Find relevant legal issues and organise them logically
I - Issue
R - Rule (general legal principles relevant to that issue backed up by case
and legislative evidence, or academic opinions)
A - Application
C - mini conclusion for each issue for the person you are advising
No right or wrong answer so don’t be too definite in answer
Offer (ITT/Offer)and acceptance (valid? Communication? Postal rule)
Interpretation of 'personal' acceptance
Intention to create legal relations
, For a valid contract you need offer, acceptance, (normally consideration
but it is not an issue here) and intention to create legal relations
Intro - short setting out of relevant legal issues
Ari&Bella
Offer - negotiations (Gibson/Storer to distinguish offer from ITT, carlill is
exception to general rule. This is a bilateral agreement so you need mirror
image rule.
2nd May Ari made firm offer to Bella in non-vague and specific terms and
communicated properly face to face
Acceptance - specified that it must be done personally by 5pm 10th May.
Bella did it by post on 8th May that arrived on 15th. Normal rule is when
acceptance is communicated/received (Entores airplane case example).
Exception to rule is postal rule where acceptance is valid upon dispatch.
Given the facts, the postal rule shouldn't apply because that was not how
it was specified and It doesn't seem reasonable as they obtained a
personal friendship so could have corresponded alternatively. (Hollurell
Securities ousted postal rule) --> could argue that postal rule could apply
either way. Email sent 10th May 4pm which are considered instantaneous
message (thomas UBPE rules should apply) but here its not an issue as Ari
read the email
At what point is a contract created when a customer purchases goods
from www.amazon.co.uk? Consider your answer from the point of view of
(i) English contract law and (ii) the terms and conditions of sale found on
the Amazon website.
'invitation to treat' - When displaying goods on website amazon are
giving an
Offer - clicks 'add to basket
CREATING A CONTRACT 1 – REACHING AN AGREEMENT
Identify 3 functions that contract law performs in society: (default status
of English contracts and generic rules can be overridden by expressed
terms of a specific contract)
Facilitates trade deals as sometimes social sanctions are not
sufficient (reputation irrelevant if no future trade deals coming) -
allows a bit of risk taking if partner isnt that reliable because you
know you can rely on terms to legally protect you
Need deferred exchange instead of instantaneous contract (credit
card needs contract to ensure reliability of agreement)
Saves time/trouble as strangers involved so need more security which
contracts provide
Encourage specialisation/division of labour to promote enterprise -
enables subcontracting as parties know they can rely on the contract
(important in capitalist economy)
Protect weakest party - in consumer contracts the consumer is the
vulnerable one because they just accept the terms
Social norms are a way to ensure that people adhere to obligations and
these are not legally binding
Has Ari made a contract with Bella, David, both or neither? You need to be
able to explain the conclusions you have reached and the case law
authorities (or contract law rules) you have relied on in reaching your
conclusions. If there are issues that you are unsure about, make a note of
these and why they are difficult.
Ari made a contract with Bella because:
Postal Rule Exception -
, =acceptance takes place when letter of acceptance enters post-box
which occurred on 8th May before offer expired or David sent his
email of acceptance (came about from Adam v Lindsell 1818)
It was reasonable for Bella to use post as means of acceptance
and from report she had the correct address/postage
Rule applies even if letter lost in post and not received by offeror
(contract is still binding)
Ari can't revoke/make binding contract with David once Bella has
accepted/posted letter (Byrne v Van Tienhoven 1880)
Adams v Lindsell - accepted but because letter took too long to
come back the offeror sold wool elsewhere (was sued)
Emails - acceptance occurs when it is communicated (NOT sent)
eg during office/working hours (ambiguous to when
'communicated' may be - Brimnes, 'acceptance communicated
when it could be read not when it IS read) - bella sent an email of
confirmation 1 hour before the normal end of office hours on a
weekday so this is acceptable even with ambiguous law
In a problem question make sure you know which party you are trying to
advise and structure your answer. Don’t discuss facts that are not
disputed. Find relevant legal issues and organise them logically
I - Issue
R - Rule (general legal principles relevant to that issue backed up by case
and legislative evidence, or academic opinions)
A - Application
C - mini conclusion for each issue for the person you are advising
No right or wrong answer so don’t be too definite in answer
Offer (ITT/Offer)and acceptance (valid? Communication? Postal rule)
Interpretation of 'personal' acceptance
Intention to create legal relations
, For a valid contract you need offer, acceptance, (normally consideration
but it is not an issue here) and intention to create legal relations
Intro - short setting out of relevant legal issues
Ari&Bella
Offer - negotiations (Gibson/Storer to distinguish offer from ITT, carlill is
exception to general rule. This is a bilateral agreement so you need mirror
image rule.
2nd May Ari made firm offer to Bella in non-vague and specific terms and
communicated properly face to face
Acceptance - specified that it must be done personally by 5pm 10th May.
Bella did it by post on 8th May that arrived on 15th. Normal rule is when
acceptance is communicated/received (Entores airplane case example).
Exception to rule is postal rule where acceptance is valid upon dispatch.
Given the facts, the postal rule shouldn't apply because that was not how
it was specified and It doesn't seem reasonable as they obtained a
personal friendship so could have corresponded alternatively. (Hollurell
Securities ousted postal rule) --> could argue that postal rule could apply
either way. Email sent 10th May 4pm which are considered instantaneous
message (thomas UBPE rules should apply) but here its not an issue as Ari
read the email
At what point is a contract created when a customer purchases goods
from www.amazon.co.uk? Consider your answer from the point of view of
(i) English contract law and (ii) the terms and conditions of sale found on
the Amazon website.
'invitation to treat' - When displaying goods on website amazon are
giving an
Offer - clicks 'add to basket
