Contract law final - practise course work PDF

Preview

Summary

practise course work...

Description

Q 1. Offer An offer is an expression of willingness to contract on certain terms. There must be no further negotiations or discussions required. In the case of Storer v Manchester City Council [1974]1 “An offer is an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the offeree.” Invitation to treat An indication of a willingness to do business, for example, it is an invitation to make an offer or to start negotiations. In the case of Gibson v Manchester City Council [1979]2 was held the following words to be an invitation to treat “may be prepared to sell the house to you”. There was undoubtedly no display of contractual intent, the words "may be prepared", indicate the Council were open to negotiation, and thus the statement was considered as an invitation to treat instead of the offer. Digi-Tech Ltd placed their advertisement in a national newspaper, therefore, it is an invitation to treat rather than an offer because in the case of Partridge v Crittenden [1968]3 declares an advertisement is an invitation to treat the reason for this is the “multi-acceptance” rule. The multi-acceptance rule states if an advertisement is intended an offer, academically a limitless amount of people possibly will accept that offer which causes understandable problems when the advertisement is for a limited amount of goods as the seller would be in breach of contract to each person whom they could not supply goods for. Q 2. Contract law defines the terms when a promise or promises are enforceable. However, nor all promises are implemented by courts. For a promise or promises to be first enforceable as a contract the following elements must be present such as agreement, formed by a corresponding offer and acceptance and backed by consideration, being mutually exchange of something which the law admits as

1 admin, “Storer v Manchester City Council: CA 1974 - Swarb.Co.Uk” (swarb.co.uk, March 13, 2019) accessed January 19, 2020 2 Wikipedia Contributors, “Gibson v Manchester City Council” (Wikipedia, September 15, 2019) accessed January 19, 2020 3 “Partridge v Crittenden” (E-lawresources.co.uk, 2020) accessed January 19, 2020

Mohammed Hakim Yousef

contract Law

having value and an intention to create legal relations 4. If these elements are not available there will be no contract between parties. In the case of Harris v Nickerson (1872) “The court held, declining the appellant's case, which the advertisement was simply a notice to notify prospective buyers that the sale was taking place. It was not an offer to contract with anybody who may act upon it by participating in the auction, neither was it a guarantee that all the goods advertised would be placed for sale. As such, it did not lawfully bind the respondent to auction the articles in question on any specific day” 5 Q 3. A contract can be formed, the offer should be accepted by both parties for example I accept your offer of £5,000 in exchange for my car. Acceptance indicates the meeting of the thoughts of the parties to the contract who together agree to exchange something for the other payment, services or items. it is essential that you can identify between the different rules and principles regulating acceptance, and under which conditions each rule will apply. Acceptance must be unequivocal6 this fundamentally means that there have to be anything left to be negotiable by the parties. Acceptance must mirror the offer the acceptance must communicate exactly with the offer in order to be legitimate and produce a binding contract and the offeree cannot accept an offer and add additional conditions while accepting. In the case of Hyde v Wrench [1840]7, Wrench offered to sell a farm to Hyde for £1000. Hyde replied that he would pay £950 for the farm. Wrench denied. Hyde then accepted Wrench’s original offer of £1000. Wrench denied once again. It was held that there was no agreement between the parties, as Hyde had denied the main offer by sending the counteroffer of £950. Acceptance must be communicated to the offeror This is an obvious obligation and must not 4 “Contract | Practical Law” (Practical Law, 2020) accessed January 19, 2020 5 “Harris v Nickerson – Summary” (Lawteacher.net, 2020) accessed January 19, 2020 6 Mackay A, “Variation of Contract: Acceptance Must Be Unequivocal” (Lexology.com, May 30, 2018) accessed January 19, 2020 7 “Hyde v Wrench” (E-lawresources.co.uk, 2020) accessed January 19, 2020

Mohammed Hakim Yousef

contract Law

be too hard to understand because the offeror should know that the contract has been created. If B accepts A’s offer to buy 20 notebooks for £100 but does not communicate his acceptance A cannot carry out his part of the contract and give the notebooks to B. The battle of the forms It is not exceptional for the parties to discuss the terms of the contract, which they do by going back and forth with different terms and conditions. The ‘battle of the forms’ term occurs from the fact that the parties keep shifting the standard terms of the agreement. BRS v Arthur V Crutchley Ltd [1968]8. End of acceptance period an offer does not last forever, and an offeree does not have a limitless time frame within which he may accept an offer. The acceptable period of an offer may end in a range of situations If the offeror changes his mind and withdraws the offer. Routledge v Grant [1828]9. The postal rule Wherever it is decided that the parties will use the post as a means of contact the postal rule will apply. The postal rule declares that where a letter is appropriately addressed and stamped the acceptance takes place when the letter is in the post box10. In the case of Henthorn v Fraser [1892] Where a post is the main means of communication within the contemplation of the parties, acceptance is communicated once it has been posted. Consider the lawful reasoning behind the postal rule. To require that the letter of acceptance arrive at the offeror’s address places a considerable burden on the offeree to ensure that it arrives, which is not fair. Therefore, in order to balance the positions of the offeror and offeree, it is accepted that the offeree has fulfilled his obligation by posting the letter. He can assume that it will arrive and should not be expected to do anything more. The offeror, in accepting to communicate by post, thus accepts liability for the prospective that the letter might not arrive. This rule applies even if the letter has been destroyed, delayed or lost. In the case of Adams v Lindsell [1818]11, the postal acceptance rule applies even if the letter is destroyed, delayed, or lost. A legitimate contract had been created now 8 “Contract Law - Acceptance. - A-Level Law - Marked by Teachers.Com” (Markedbyteachers.com, 2013) accessed January 19, 2020 9 “Routledge v Grant [1828]” (note to self, 2019) accessed January 19, 2020 10 “Postal Rule of Acceptance” (Lawteacher.net, 2020) accessed January 19, 2020

Mohammed Hakim Yousef

contract Law

that the letter of acceptance had been placed in the post box. The rule applies when the parties have agreed to communicate by post, and when the letters have been correctly addressed and stamped. By considering the postal rule Vicki’s acceptance is complete however she misaddressed the letter but the postal rule states that the rule applies even if the letter delays, destroys or gets lost therefor Vicki’s acceptance is complete. However, Monica sent an email to Digi Tech accepting their offer at 6 pm on Friday 12th May but her email was not read until Monday 15 th May due to power cut which was Digi Tech’s fault for not paying their electric bill on time. Electronic acceptance takes effect as soon as it is received. Therefore, the Postal Rule does not apply. In the case of Entores v Miles Far Eastern Co [1955] “The court held that the contract and damages were to be decided by English law. It was stated that the postal rule did not apply for instantaneous communications. Since Telex was a form of instant messaging, the normal postal rule of acceptance would not apply and instead, acceptance would be when the message by Telex was received. Thus, the contract was created in London. This general principle on acceptance was held to apply to all forms of instantaneous communication methods. Acceptance via these forms of communication had to be clear before any contract is created”.12 Q 4. Whether consideration has been given by the parties is one of the important steps in verifying the legal enforceability of a contract. In the case of Currie v Misa [1874]13 was said a useful consideration, might involve both in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility, given, suffered or undertaken by the other. Importantly, consideration is the exchange of benefits and detriments between parties. It will be a mistake to believe that the consideration must itself transfer to form a binding agreement. A promise to shift such consideration is often enough. This statement was confirmed in Dunlop v Selfridge Ltd [1915]14 where Lord Dunedin said that promises were 11 “Adams v Lindsell” (E-lawresources.co.uk, 2020) accessed January 19, 2020 12 Wikipedia Contributors, “Entores Ltd v Miles Far East Corp” (Wikipedia, June 12, 2019) accessed January 19, 2020 13 “Currie v Misa [1875] | Case Summary | Webstroke Law” (Webstroke.co.uk, 2014) accessed January 19, 2020

14 “Dunlop Pneumatic Tyre Co. Ltd. v Selfridge & Co. Ltd.” (Case Brief Wiki, 2020) accessed January 19, 2020 15 US Legal, Inc, “Executory Consideration Law and Legal Definition | USLegal, Inc.” (Uslegal.com, 2019) accessed January 19, 2020 16 “Balfour v Balfour” (E-lawresources.co.uk, 2020) accessed January 19, 2020 17 “Social and Domestic Agreement Rebutting Assumption” (Lawteacher.net, 2020) accessed January 19, 2020

Mohammed Hakim Yousef

contract Law

In the given scenario Viki by sending a letter to Digi Tech and making a counteroffer of £200 shows her to intention to create legal relation with Digi Tech and Monica by sending an email to Digi Tech’s accepting their offer shows her intention is to create legal relation with Digi Tech, therefore, the intention both parties were to create legal relations with each other.

Bibliography

Mohammed Hakim Yousef

contract Law

“Adams v Lindsell.” E-Lawresources.Co.Uk, 2020, www.elawresources.co.uk/Adams-v-Lindsell.php. Accessed 19 Jan. 2020. admin. “Storer v Manchester City Council: CA 1974 - Swarb.Co.Uk.” Swarb.Co.Uk, 13 Mar. 2019, swarb.co.uk/storer-v-manchester-city-council-ca-1974/. Accessed 19 Jan. 2020. “Balfour v Balfour.” E-Lawresources.Co.Uk, 2020, www.elawresources.co.uk/Balfour-v-Balfour.php. Accessed 19 Jan. 2020. “Contract | Practical Law.” Practical Law, 2020, uk.practicallaw.thomsonreuters.com/4-107-6271? transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1. Accessed 19 Jan. 2020. “Contract Law - Acceptance. - A-Level Law - Marked by Teachers.Com.” Markedbyteachers.Com, 2013, www.markedbyteachers.com/as-and-a-level/law/contract-lawacceptance.html. Accessed 19 Jan. 2020. “Currie v Misa [1875] | Case Summary | Webstroke Law.” Webstroke.Co.Uk, 2014, webstroke.co.uk/law/cases/currie-v-misa-1875. Accessed 19 Jan. 2020. “Dunlop Pneumatic Tyre Co. Ltd. v Selfridge & Co. Ltd.” Case Brief Wiki, 2020, casebrief.fandom.com/wiki/Dunlop_Pneumatic_Tyre_Co._Ltd._v_Selfridge_ %26_Co._Ltd. Accessed 19 Jan. 2020. “Harris v Nickerson – Summary.” Lawteacher.Net, 2020, www.lawteacher.net/cases/harris-v-nickerson.php. Accessed 19 Jan. 2020. “Hyde v Wrench.” E-Lawresources.Co.Uk, 2020, www.e-lawresources.co.uk/Hyde-vWrench.php. Accessed 19 Jan. 2020.

Mohammed Hakim Yousef

contract Law

Mackay, Annabel. “Variation of Contract: Acceptance Must Be Unequivocal.” Lexology.Com, 30 May 2018, www.lexology.com/library/detail.aspx?g=8185bd2a-63ef-4815-99fcb9a9affdc785. Accessed 19 Jan. 2020. “Partridge v Crittenden.” E-Lawresources.Co.Uk, 2020, www.elawresources.co.uk/Partridge-v-Crittenden.php. Accessed 19 Jan. 2020. “Postal Rule of Acceptance.” Lawteacher.Net, 2020, www.lawteacher.net/free-lawessays/contract-law/postal-rule-of-acceptance-contract-law-essay.php. Accessed 19 Jan. 2020. “Routledge v Grant [1828].” Note to Self, 2019, melanie312.tumblr.com/post/64849403877/routledge-v-grant-1828. Accessed 19 Jan. 2020. “Social and Domestic Agreement Rebutting Assumption.” Lawteacher.Net, 2020, www.lawteacher.net/free-law-essays/contract-law/social-and-domesticagreement-rebutting-assumption-contract-law-essay.php. Accessed 19 Jan. 2020. US Legal, Inc. “Executory Consideration Law and Legal Definition | USLegal, Inc.” Uslegal.Com, 2019, definitions.uslegal.com/e/executory-consideration/. Accessed 19 Jan. 2020. Wikipedia Contributors. “Entores Ltd v Miles Far East Corp.” Wikipedia, Wikimedia Foundation, 12 June 2019, en.wikipedia.org/wiki/Entores_Ltd_v_Miles_Far_East_Corp. Accessed 19 Jan. 2020.

Mohammed Hakim Yousef

contract Law...