Agreement contract law

What are the requirements of a valid contract?

Answer: CIA o Consideration – value of bargain element of contract , an exchange o Agreement = offer and acceptance o Intention – parties must be deemed to have intended legal relations

What is the objectivity principle?

Answer: objective test – an independent 3rd party looks at situation and determines what intentions of the parties to be.

What is the definition of an offer?

Answer: “An offer is an expression of willingness to contract on specified terms made with the intention that it is to become legally binding as soon as it is accepted by the person to whom it is addressed” - Treitel Simply = offer is a statement of the terms on which the offer is willing to be bound.

What is the difference between an offer and an initiation to treat?

Answer: o First step in negotiations o Action inviting other parties to make an offer to form contract

What is the rule found in Gibson v Manchester city council [1979]

Answer: Denning (lawyer) said there is no need to look for the idea of offer and acceptance in every case, look at correspondence as a whole, conduct of parties & see if parties came to agreement.

What is the rule found in Pharmaceutical society of Great Britain v Boots cash chemist [1953]

Answer: Rule = goods on display of shop are an invitation to treat not immediate acceptance.

What is the rule for adverts being an offer? and in which case is this found?

Answer: Partridge v Crittenden [1968] – adverts o Rationale: an advertiser may have limited supplies of the goods in question. Consequently, if the goods were designated as an offer, the advertiser would potentially be in breach of the contract If they had insufficient supplies to meet all the purported acceptances [limited stocks argument] o Advert = invitation to treat generally.

What is a unilateral offer? And in which case is this found?

Answer: Carlil v Carbolic Smoke Ball company (1893) Unilateral offer = an offer which prescribes an act which, when performed, constitutes acceptance.

What is a bilateral contract?

Answer: o Exchange of promises. o ‘I promise to sell a cup of coffee. You promise to pay £3’ o There is a contract to which we are both bound. o Most contracts are bilateral.

What is a unilateral contract?

Answer: o An offer ‘prescribing performance of a specified act as acceptance’ o An ‘if’ contract – one sided, only one person is bound. o I will give you £10 to find my lost dog. You can’t accept this contract by promising to find my dog. You can only accept by fulfilling required act.