Contract Law notes

- Offe
ree
mus
t
Contract Law Notes hav
Contracts ‘A’ e
kno
wle
Offer
dge
of
- Bilateral contracts and
- Unilateral contracts act
- Offers to the public at large in
relia
What is an offer? nce
- Mere puff to
- Supply of information an
- Invitation to treat offe
r
Categorizing transactions
- Advertisements
a) Advertisements in a catalogue or a curricular
b) Advertisements in newspapers or magazines
c) Advertisements appearing on the internet
d) Display of goods
- Auctions
a) Advertisement of auction Page 9
b) Auctions with reserves
c) Auctions without a reserve
- Tendering
- Standing offers
 Options
Page 9
Communication of an offer

Termination of an offer
- An offer may be terminated by
a) Revocation by the offeror Page 10
b) Rejected by the offeree
c) Lapse of time
d) Failure of a condition subject to which the offer
was made
e) Death

Acceptance

Requirements of acceptance

Acceptance must correspond to offer




1

, Certainty
Page 12 and
Complete
Page 13
ness

Statement
of the rule
- Fac
ets
to
the
Page 14 prin
cipa
Page14 l

Page14 Ambiguity
and
uncertaintie
- A counter offer is not acceptance s
- Acceptance must be unqualified - Indi
- Mere enquiry does not constitute acceptance vidu
al
Notification to the offerer of the fact of acceptance term
- Method of acceptance s
a) Method of acceptance stipulated by offer - Agr
b) Acceptance by silence eem
c) Acceptance by conduct ents
- Instantaneous communication: Acceptance must be to
communicated neg
a) General rule otiat
b) Meaning of instantaneous communication e
- Postal acceptance rule
a) Statement of the rule Saving
b) Policy behind the rule ambiguous,
c) To what communication does the rule extend uncertain or
d) Where is the rule displaced meaningles
e) Revocation of acceptance prior to receipt s terms
- Lin
Acceptance in unilateral contracts k to
- Acceptance commonly by conduct exte
- Withdrawal of an offer after acceptance has commenced rnal
stan
Who may accept an offer? dard

Contract formation: time and place
- Instantaneous communication
- Post




2

, - Link to reasonableness standard
- Severance
- Waiver or removal of certainty

Incomplete agreement Page 22
- Agreement contains mechanism to complete
a) Reference to a third party
b) Discretion retained by contracting party
- Breakdown of mechanism to complete
Saving
incomplete
agreements
- Inco
Page 16 mpl
etio
n of
term
s
- Fail
ure
to
spec
ify a
pric
e
a) C
o
n
t
Page 18 r
a
c
t
Page 18 s
i
Page 19 l
e
n
t
Page 19 o
n
Page 20
p
r
Page 20 i
c
e

Page 21



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, b) Contract provides for parties to agree in the future
c) Contract make provisions for mechanism to
complete
d) Contract provides for payment of a reasonable
price
- Subject to agreements
 Subject to finance agreements
a) Satisfactory finance
b) Steps to be taken to obtain finance
 Subject to contract


Intention to create legal relations Page 27

Statement of rule Page 27

Domestic and social relationships Page 27
- Presumption
- Rebutting the presumption
a) Husband and wife
b) Separated husband and wife
c) Other family relationships
d) Social relationships

Commercial agreement Page 29
- Presumption
- Rebutting the presumption

Government activities Page 30
- Commercial agreements
- Policy initiatives

Voluntary associations Page 30

Circumstances indicating absence of intent Page 30
- Honour clause
- Promotional puff and free gifts
- Ex gratia payments and without prejudice offers
- Letter of comfort
- Letter of intent and understanding


Consideration Page 32

Nature of consideration Page 32
- Consideration in bilateral contracts
Page 23




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