Contract Law - week 1 notes PDF

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Contract Law

Contract- A promise that is legally binding Law will compel the person making the promise (promiser) to perform that promise or to pay damages to compensate the person to whom it was made to (promise) for non performance. For there to be a contract there must be some form of exchange (Concept of bargain) Compulsory third-party car insurance Can’t commit a crime

Contract law is largely judge made law

Formation of Contracts Agreement Offer – Express or implied promise to do or not to do something in exchange for another party’s counter offer or act Acceptance – Affirmation response to an offer by the offeree making the specified counter promise or performing the specified act. Unconditional and affirmative response to the offer or proposal An agreement is a voluntary meeting of the minds reached between two or more parties about a specific subject. Smith v hughes Hughes entered a contract to buy oats from Smith, however upon finding out the oats were new he attempted to return them to which Smith refused and took the matter to court. The court ruled in Smiths favour as a reasonable person would think that Hughes was purchasing new oats from Smith and as such the contract would legitimate.

Carlil v Carbolic Smoke ball

The court held that the ad was indeed an offer as it was promisary and intentional and sufficiently specific. Offer- Intent and affirmative response which will result in an agreement

Invitation to deal- Intent to make the other person to make an offer Self Service goods Pharmaceutical v Boots Makes sense as if this was not the case u would have to buy everything you touch Advertisements But can be characterized as an offer if the ad leaves nothing open for negotiation and is clear and explicit- Highly persuasive Leftkowitz- Request to be one of the first three customers in return for a fur stole for one dollar. Auctions Bids are offers AGC v Mcwhiter Remove reserve for a house however that is still an invitation However this is not the case for online auctions

Looked at objectively for the difference between an offer or invitation to deal

Terminations RevocationAn offer can be revoked at any time before it is accepted No consideration in return for the promise

Bilateral- Exchange of a promise for a promise Unilateral- Only one party makes a promise in exchange for the other party performing an act. Acceptance of a unilateral contract occurs when the offeree has performed the designated tasks set by the offerer....