CONTRACT LAW: Sara Ahmed
OFFER (1) + INTENTION TO CREATE LEGAL RELATIONS (3) +
Offer = an expression of willingness to contract on certain terms, made Commercial agreements = presumption of intention to create legal
with the intention that it shall become binding as soon as it is accepted relations (not easy to rebut, but i.e. ‘subject to funding/contract’.
by the person to whom it is addressed. In domestic/social agreements = presumption of no intention
Both can be rebutted, i.e. if family dealings are in commercial setting.
Invitation to treat = Invitation to make an offer Reasonable men test = objective test.
- Goods on display = invitation to treat
- Goods or services advertised = invitation to treat + CONSIDERATION (4) = CONTRACT
- Auctioneer inviting bids = invitation to treat
Giving something of value in return, must give something in consideration.
Adverts of Reward = OFFER A promise to give f.e. money = also good consideration.
Auctioneer saying will sell to highest bid = offer
No consideration = Nudum pactum = naked promise = not enforceable
But if you give a penny/pound = enforceable. I’ll give you my car for free =
ACCEPTANCE (2) + nudum pactum!
Needs to be unqualified (unequivocal) = must exactly match the offer Must not be past must be given in return for the promise (not extra
promise after sale. For new promise, you need new consideration)
Counteroffer = original offer goes void/null. Cannot be accepted anymore EXCEPTION: fulfill three criteria
o Act must have been done at Promisors request
o Parties must have understood that act was to be rewarded
Mere request for information = Offer still stands and is open for
o Payment must have been legally enforceable had it been made in
acceptance
advance
Must be sufficient, but need not be adequate Law does not care about
General rule = acceptance must be communicated to the offeror how much you sell for, but has to be something of value (penny can do)
Performance of an existing duty = in general not good consideration
Silence? In bilateral contract = no. In unilateral offer = yes (Carlill) EXCEPTION:
Third party? Yes, but must be dully authorized o if promise is given in return for work that goes beyond the original
Post? Yes = postal rule. obligation = extra work = good consideration
o Does not apply to revoking offers, only to accepting offers! o If performance creates practical benefit = also good consideration
o Applies even if letter is lost in post
o Only applies if it was contemplated that post would be used Performance of duty required by statute = not good consideration
o Emails are not subject to postal rule, email when received Unless going above and beyond!
Existing duty to a third party can amount to valid consideration
OFFER (1) + INTENTION TO CREATE LEGAL RELATIONS (3) +
Offer = an expression of willingness to contract on certain terms, made Commercial agreements = presumption of intention to create legal
with the intention that it shall become binding as soon as it is accepted relations (not easy to rebut, but i.e. ‘subject to funding/contract’.
by the person to whom it is addressed. In domestic/social agreements = presumption of no intention
Both can be rebutted, i.e. if family dealings are in commercial setting.
Invitation to treat = Invitation to make an offer Reasonable men test = objective test.
- Goods on display = invitation to treat
- Goods or services advertised = invitation to treat + CONSIDERATION (4) = CONTRACT
- Auctioneer inviting bids = invitation to treat
Giving something of value in return, must give something in consideration.
Adverts of Reward = OFFER A promise to give f.e. money = also good consideration.
Auctioneer saying will sell to highest bid = offer
No consideration = Nudum pactum = naked promise = not enforceable
But if you give a penny/pound = enforceable. I’ll give you my car for free =
ACCEPTANCE (2) + nudum pactum!
Needs to be unqualified (unequivocal) = must exactly match the offer Must not be past must be given in return for the promise (not extra
promise after sale. For new promise, you need new consideration)
Counteroffer = original offer goes void/null. Cannot be accepted anymore EXCEPTION: fulfill three criteria
o Act must have been done at Promisors request
o Parties must have understood that act was to be rewarded
Mere request for information = Offer still stands and is open for
o Payment must have been legally enforceable had it been made in
acceptance
advance
Must be sufficient, but need not be adequate Law does not care about
General rule = acceptance must be communicated to the offeror how much you sell for, but has to be something of value (penny can do)
Performance of an existing duty = in general not good consideration
Silence? In bilateral contract = no. In unilateral offer = yes (Carlill) EXCEPTION:
Third party? Yes, but must be dully authorized o if promise is given in return for work that goes beyond the original
Post? Yes = postal rule. obligation = extra work = good consideration
o Does not apply to revoking offers, only to accepting offers! o If performance creates practical benefit = also good consideration
o Applies even if letter is lost in post
o Only applies if it was contemplated that post would be used Performance of duty required by statute = not good consideration
o Emails are not subject to postal rule, email when received Unless going above and beyond!
Existing duty to a third party can amount to valid consideration
