Offer and Acceptance
Explain the term invitation to treat
This occurs where a party is merely inviting offers, which he is then free to accept or reject. In other words, there is the opportunity to further negotiate in these instances
What does privity of contract mean?
The doctrine of privity in contract law provides that a contract cannot confer rights or obligations on a person who is not a party to the contract
Explain the term exclusion clause
Exclusion clauses are clauses, usually written down, that say that one party to the contract will not be responsible for certain happenings or that liability will be limited.
What is misrepresentation
A misrepresentation is an unambiguous, false statement of fact (or possibly law) which is addressed to the party misled, which is material and which induces the contract
Explain the term Past Consideration
If one party takes it upon himself to complete a task that was not assigned to him, and the other party then makes a promise, the consideration for the promise is said to be in the past. The general rule is that past consideration is not good consideration, so it is not valid.
Principle in Hyde v Wrench
When a counter-offer is introduced, it extinguishes the original offer which cannot be later accepted.
What are the two types of illegality
Statutory Illegality and Common Law Illegality
How can an exclusion clause be incorporated into a contract
Signature, Notice, Course of Dealings
What are the types of misrepresentation
Fraudulent, Negligent and Innocent Misrepresentation
Principle in Stilk v Myrick
If someone is already bound under a contract to do something, then promising to do that which they are already bound to do is no valid consideration
List the different types of Invitations to Treat
Auction, Price Quotation, Invitation to Tender, Advertisements, Goods on Display
Principle in St. John's Shipping Corporation v Joseph Rank Ltd.
The birth of a contract may be legal, that is, legal in its formation but illegal as to how it is performed.
What is the difference between conditions and warranties
A condition is a very important term of the contract. It is often said to go to the core of the contract. It is the essence on which the contract hinges and without which the contract could not have survived. The injured party will be entitled to repudiate the contract and claim damages. The injured party may also affirm the contract, despite the breach, and recover damages instead.
A warranty is a less significant term and does not go to the core of the contract. A breach of warranty will only give the injured party the right to claim damages, he cannot repudiate the contract because the contract has not been severely compromised and can survive a breach
What are the remedies for an action of Misrepresentation
Damages, Indemnity, Recission
What are three rules governing consideration
Past Consideration is Not Good Consideration, Forbearance to sue, Existing Contractual Duty owed to a third party, Consideration must be sufficient but need not be adequate, Consideration must move from the promisee, Existing Public Duty, Existing Contractual Duty, Part Payment of a Debt
Facts of Carlil v Carbolic Smoke Ball Co
An advert was placed for ‘smoke balls’ to prevent influenza. The advert offered to pay £100 if anyone contracted influenza after using the ball. The company deposited £1,000 with the Alliance Bank to show their sincerity in the matter. The plaintiff bought one of the balls but contracted influenza. It was held that she was entitled to recover the £100.
Facts of Pearce v Brooks
The defendant was a prostitute who hired a carriage from the plaintiff, who was a coachbuilder, on hire purchase terms to be paid for in instalments. She wanted the carriage to attract customers. The defendant did not pay the second instalment on the carriage and returned it in a damaged condition, in breach of the agreement. At first instance the jury found on the evidence that the coachbuilder knew that she was a prostitute at the time the contract was made. The coachbuilder sued for non-payment and for the damage.
What are the facts of Bettini v Gye
Bettini v Gye (1876) 1 QBD 183—Bettini, an opera singer, was engaged by Gye to appear in a season of concerts. He undertook to be in London at least six days before the first concert for the purpose of rehearsals. He arrived three days late because of a temporary illness. He gave no advance notice and Gye refused to accept his services
Facts of Bisset v Wilkinson
The plaintiff purchased from the defendant two blocks of land for the purpose of sheep farming. During negotiations the defendant said that if the place was worked properly, it would carry 2,000 sheep. The plaintiff bought the place believing that it would carry 2,000 sheep. Both parties were aware that the defendant had not carried on sheep-farming on the land.
What are the facts of Re McArdle
A wife and her three grown-up children lived together in a house. The wife of one of the children did some decorating and later the children promised to pay her £488 and they signed a document to this effect. It was held that the promise was unenforceable as all the work had been done before the promise was made and was therefore past consideration.
What case established the Postal Rule and what are the facts
Adams v Lindsell (1818) 1 B & Ald 681.—2 Sept. The defendant wrote to the plaintiff offering to sell goods asking for a reply “in the course of post” 5 Sept. The plaintiff received the letter and sent a letter of acceptance. 9 Sept. The defendant received the plaintiff’s acceptance but on 8 Sept had sold the goods to a third party. It was held that a binding contract was made when the plaintiff posted the letter of acceptance on 5 Sept, so the defendant was in breach of contract
What are the facts and what was held in f Shanklin Pier Ltd v Detel Products Ltd
Contractors employed by the claimants to paint the claimant’s pier were instructed by the claimants to use paint manufactured by the defendants. The contract to purchase the paint was actually made between the contractors and the defendants but a representation was made by the defendant to the claimants that the paint would last for seven years. The paint only lasted three months. It was held that the claimants were entitled to bring an action for breach of contract against the defendants on the ground that there was a collateral contract between them to the effect that the paint would last for seven years
What are the facts and what was held in Bannerman v White
The buyer of hops asked whether sulphur had been used in their cultivation. He added that if it had he would not even bother to ask the price. The seller assured him that it had not. This assurance was held to be a condition of the contract. It was of such importance that, without it, the buyer would not have contracted.
What case established the principle of Statements of Opinion and what are the facts.
Bisset v Wilkinson [1927] AC 177—The plaintiff purchased from the defendant two blocks of land for the purpose of sheep farming. During negotiations the defendant said that if the place was worked properly, it would carry 2,000 sheep. The plaintiff bought the place believing that it would carry 2,000 sheep. Both parties were aware that the defendant had not carried on sheep-farming on the land.
What rule established part payment of a debt and what are the facts
The rule in Pinnel’s case which is still good law today represents the general rule that part payment of a debt is not good consideration. So that if someone owes money he cannot pay only a portion of this debt in full settlemet of the debt. Where he pays only a portion then there is nothing to prevent the creditor from requesting the difference in the future. In Pinnel’s Case (1602), Cole owed Pinnel £8-10s-0d (£8.50) which was due on 11 November. At Pinnel’s request, Cole payed £5-2s-2d (£5.11) on 1 October, which Pinnel accepted in full settlement of the debt. Pinnel sued Cole for the amount owed. It was held that part-payment in itself was not consideration. However, it was held that the agreement to accept part-payment would be binding if the debtor, at the creditor’s request, provided some fresh consideration.