Contract Law – Hybrid Study Guide (Summary +
Case Briefs + Q&A)
1. Key Principles of Contract Law (Summary)
• Definition: A contract is a legally enforceable agreement between two or more parties with
mutual obligations.
• Essential Elements:
o Offer: A clear proposal by one party.
o Acceptance: Unconditional agreement to the offer.
o Consideration: Something of value exchanged.
o Intention to Create Legal Relations: Both parties must intend to be legally bound.
o Capacity: Parties must be legally capable of contracting.
o Legality: The contract’s purpose must be lawful.
2. Major Contract Law Cases
Case Summary
Carlill v Carbolic Smoke Ball Co Established unilateral contracts and importance of clear
(1893) intention to contract.
Offer & Acceptance
Pharmaceutical Society v Boots
Display of goods is invitation to treat, not an offer.
(1953)
Partridge v Crittenden (1968) Advertisements are invitations to treat.
Acceptance by instantaneous communication is only effective
Entores v Miles Far East (1955)
when received.
Consideration
Defined consideration as a benefit to one party or detriment to
Currie v Misa (1875)
another.
Chappell & Co v Nestle (1960) Consideration need not be adequate, but must be sufficient.
Intention
, Case Summary
Domestic agreements generally lack intention to create legal
Balfour v Balfour (1919)
relations.
Merritt v Merritt (1970) Agreements in commercial/domestic split may be binding.
Capacity
Nash v Inman (1908) A minor is not bound unless the contract is for a necessity.
Terms
L'Estrange v Graucob (1934) Signature binds even if terms are unread.
Oscar Chess v Williams (1957) Distinction between term and representation.
Breach & Remedies
Hadley v Baxendale (1854) Damages recoverable if foreseeable at time of contracting.
Hong Kong Fir Shipping v Kawasaki
Introduced concept of innominate terms.
(1962)
3. Exam-Style Questions & Answers
Offer & Acceptance
Q1: What is an invitation to treat?
A: A preliminary communication showing willingness to negotiate, not an offer (e.g., Partridge v
Crittenden).
Q2: When does acceptance take effect via email?
A: Upon receipt, not when sent (Entores v Miles).
Q3: Can silence amount to acceptance?
A: No — acceptance must be communicated (Felthouse v Bindley).
Consideration
Q4: What makes consideration valid?
A: It must be sufficient (legally valuable), but not necessarily adequate (Chappell v Nestle).
Q5: Can past consideration be valid?
A: No, past consideration is not valid unless part of a continuing obligation (Re Casey’s Patents).
Intention to Create Legal Relations
Q6: Are social agreements legally binding?
A: Usually not (Balfour v Balfour), unless clear intention (Merritt v Merritt).
Case Briefs + Q&A)
1. Key Principles of Contract Law (Summary)
• Definition: A contract is a legally enforceable agreement between two or more parties with
mutual obligations.
• Essential Elements:
o Offer: A clear proposal by one party.
o Acceptance: Unconditional agreement to the offer.
o Consideration: Something of value exchanged.
o Intention to Create Legal Relations: Both parties must intend to be legally bound.
o Capacity: Parties must be legally capable of contracting.
o Legality: The contract’s purpose must be lawful.
2. Major Contract Law Cases
Case Summary
Carlill v Carbolic Smoke Ball Co Established unilateral contracts and importance of clear
(1893) intention to contract.
Offer & Acceptance
Pharmaceutical Society v Boots
Display of goods is invitation to treat, not an offer.
(1953)
Partridge v Crittenden (1968) Advertisements are invitations to treat.
Acceptance by instantaneous communication is only effective
Entores v Miles Far East (1955)
when received.
Consideration
Defined consideration as a benefit to one party or detriment to
Currie v Misa (1875)
another.
Chappell & Co v Nestle (1960) Consideration need not be adequate, but must be sufficient.
Intention
, Case Summary
Domestic agreements generally lack intention to create legal
Balfour v Balfour (1919)
relations.
Merritt v Merritt (1970) Agreements in commercial/domestic split may be binding.
Capacity
Nash v Inman (1908) A minor is not bound unless the contract is for a necessity.
Terms
L'Estrange v Graucob (1934) Signature binds even if terms are unread.
Oscar Chess v Williams (1957) Distinction between term and representation.
Breach & Remedies
Hadley v Baxendale (1854) Damages recoverable if foreseeable at time of contracting.
Hong Kong Fir Shipping v Kawasaki
Introduced concept of innominate terms.
(1962)
3. Exam-Style Questions & Answers
Offer & Acceptance
Q1: What is an invitation to treat?
A: A preliminary communication showing willingness to negotiate, not an offer (e.g., Partridge v
Crittenden).
Q2: When does acceptance take effect via email?
A: Upon receipt, not when sent (Entores v Miles).
Q3: Can silence amount to acceptance?
A: No — acceptance must be communicated (Felthouse v Bindley).
Consideration
Q4: What makes consideration valid?
A: It must be sufficient (legally valuable), but not necessarily adequate (Chappell v Nestle).
Q5: Can past consideration be valid?
A: No, past consideration is not valid unless part of a continuing obligation (Re Casey’s Patents).
Intention to Create Legal Relations
Q6: Are social agreements legally binding?
A: Usually not (Balfour v Balfour), unless clear intention (Merritt v Merritt).
