CASES: CONTRACT
Offer and Acceptance
- Centrovincial estates
o Offeree signed on basis of rent costing £65,000 per year but was intended to be
£126,000 per year (person may be bound by mistake in offer)
- Smith v Hughes
o A person may be bound by a mistake in acceptance.
- Hartog v shields
o The offeror is not bound if a reasonable person would have realised the mistake (person
cannot ‘snap-up’ unreasonable offer)
- Gibson v Manchester city council
o The incomplete contract was ruled to be an invitation to treat rather than an offer and
was not legally binding. Note Storer v Manchester city council; similar facts but ruled
the other way.
- Carlill v carbolic smoke ball co
o And advertisement can constitute an offer to the whole world. Acceptance can be made
through performance of an action.
- Fisher v Bell
o Advert in shop window is an invitation to treat, not an offer. (flick knife case)
- Hyde v Wrench
o A counter offer is not acceptance and will kill off the original offer.
- Felthouse v Bindley
o Silence does not constitute acceptance.
- Adams v Lindsdell
o Postal rule of acceptance: the acceptance is valid at the point of posting. It is the fault of
the offeror for choosing post as the means for acceptance.
Enforceability Criteria
- Balfour v Balfour
o Husband’s promise to pay wife an allowance was not legally enforceable. Social/
domestic agreements are usually unenforceable.
- Blue v Ashley
o ‘Pub Banter’ does not create a legally enforceable contract.
Consideration
- Lampleigh v Braithwaite
o Past consideration can be good consideration if there was an implied promise to pay the
claimant, especially when the act would have reasonably required consideration.
- Stilk v Myrick
o Performance of pre-existing duties will not constitute good consideration
- Glasbrook bros v Glamorgan CC
o If you go above and beyond your pre-existing duties, it can constitute good
consideration.
- Pinnel’s case/ Foakes v Beer
o Part-payment of a debt can never satisfy the full amount, even if the lender agreed to
accept less.
, - Williams v Roffey
o If part-payment is accompanied by practical benefit, this can constitute good
consideration. (avoiding penalty clauses etc)
Misrepresentation
- Bisset v Wilkinson
o Sheep in a field case. Statements of opinion are not admissible as statements of fact
- Esso v Marden
o Statements of opinion can be statements of fact if the person is reasonably expected to
have expertise in that area.
- Edgington v Fitzmaurice
o If you lie about your intentions, you can be liable for misrepresentation.
- Wales v Wadham
o If your intentions change, you are not liable. You are allowed to change your mind.
- Spice Girls v Aprilla
o If you fail to tell the other party about a change in circumstance, you can be liable for
misrepresentation.
Mistake in Contract
- Shogan Finance v Hudson
o Car dealer supplied car to fraudster on credit procured with stolen documents from Mr
Patel. F then sold the car to Hudson (innocent 3rd party)
o Contract was void because even though they dealt with F face to face, they thought
they were dealing with Mr Patel.
Duress
- Barton v Armstrong
o Death threats. Only have to show that the threat was made and that it was a
contributing (but not main) factor.
- Siboen and Sibotre
o Threats to property can constitute duress.
- The Atlantic Baron
o Court recognised that financial pressure can constitute duress. Defendants building
ship, price of construction in USD. Dollar fell 10%, demanded 10% rise in price or would
stop building. Claimants needed ship finished to do another contract so agreed. Sued
for duress.
- Alec Lobb Garages
o There is no economic duress when someone refuses to waive a contractual right.
Undue Influence
- Allcard v Skinner
o Claimant entered convent and gave up all property to mother superior. Court found
that this was done under undue influence from the mother superior.
- Etridge
o If a wife is made to enter into a contract to set her house and collateral for a mortgage
under the influence of her husband, it can be found to be undue influence.
Offer and Acceptance
- Centrovincial estates
o Offeree signed on basis of rent costing £65,000 per year but was intended to be
£126,000 per year (person may be bound by mistake in offer)
- Smith v Hughes
o A person may be bound by a mistake in acceptance.
- Hartog v shields
o The offeror is not bound if a reasonable person would have realised the mistake (person
cannot ‘snap-up’ unreasonable offer)
- Gibson v Manchester city council
o The incomplete contract was ruled to be an invitation to treat rather than an offer and
was not legally binding. Note Storer v Manchester city council; similar facts but ruled
the other way.
- Carlill v carbolic smoke ball co
o And advertisement can constitute an offer to the whole world. Acceptance can be made
through performance of an action.
- Fisher v Bell
o Advert in shop window is an invitation to treat, not an offer. (flick knife case)
- Hyde v Wrench
o A counter offer is not acceptance and will kill off the original offer.
- Felthouse v Bindley
o Silence does not constitute acceptance.
- Adams v Lindsdell
o Postal rule of acceptance: the acceptance is valid at the point of posting. It is the fault of
the offeror for choosing post as the means for acceptance.
Enforceability Criteria
- Balfour v Balfour
o Husband’s promise to pay wife an allowance was not legally enforceable. Social/
domestic agreements are usually unenforceable.
- Blue v Ashley
o ‘Pub Banter’ does not create a legally enforceable contract.
Consideration
- Lampleigh v Braithwaite
o Past consideration can be good consideration if there was an implied promise to pay the
claimant, especially when the act would have reasonably required consideration.
- Stilk v Myrick
o Performance of pre-existing duties will not constitute good consideration
- Glasbrook bros v Glamorgan CC
o If you go above and beyond your pre-existing duties, it can constitute good
consideration.
- Pinnel’s case/ Foakes v Beer
o Part-payment of a debt can never satisfy the full amount, even if the lender agreed to
accept less.
, - Williams v Roffey
o If part-payment is accompanied by practical benefit, this can constitute good
consideration. (avoiding penalty clauses etc)
Misrepresentation
- Bisset v Wilkinson
o Sheep in a field case. Statements of opinion are not admissible as statements of fact
- Esso v Marden
o Statements of opinion can be statements of fact if the person is reasonably expected to
have expertise in that area.
- Edgington v Fitzmaurice
o If you lie about your intentions, you can be liable for misrepresentation.
- Wales v Wadham
o If your intentions change, you are not liable. You are allowed to change your mind.
- Spice Girls v Aprilla
o If you fail to tell the other party about a change in circumstance, you can be liable for
misrepresentation.
Mistake in Contract
- Shogan Finance v Hudson
o Car dealer supplied car to fraudster on credit procured with stolen documents from Mr
Patel. F then sold the car to Hudson (innocent 3rd party)
o Contract was void because even though they dealt with F face to face, they thought
they were dealing with Mr Patel.
Duress
- Barton v Armstrong
o Death threats. Only have to show that the threat was made and that it was a
contributing (but not main) factor.
- Siboen and Sibotre
o Threats to property can constitute duress.
- The Atlantic Baron
o Court recognised that financial pressure can constitute duress. Defendants building
ship, price of construction in USD. Dollar fell 10%, demanded 10% rise in price or would
stop building. Claimants needed ship finished to do another contract so agreed. Sued
for duress.
- Alec Lobb Garages
o There is no economic duress when someone refuses to waive a contractual right.
Undue Influence
- Allcard v Skinner
o Claimant entered convent and gave up all property to mother superior. Court found
that this was done under undue influence from the mother superior.
- Etridge
o If a wife is made to enter into a contract to set her house and collateral for a mortgage
under the influence of her husband, it can be found to be undue influence.
