INTRODUCTION TO LAW LAW1101

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INTRODUCTION TO LAWLAW1101

• Week 10
• Module 7 Contract - Agreement
• (Offer and Acceptance)

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CONTRACT LAW

• Module 7
• Basic Elements
• Promissory Estoppel
• Module 8
• Construction of Terms
• Exclusion Clauses
• Module 9
• Validity and Enforceability
• Discharge

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DEFINITION

• A CONTRACT IS AN AGREEMENT BETWEEN TWO OR MORE
  PARTIES WHEREBY LEGAL RIGHTS ARE CREATED WHICH
  THE LAW WILL ENFORCE

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TYPES OF CONTRACTS

• Formal Contracts
• Simple or Parol Contracts

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ELEMENTS OF A CONTRACT

• 1. Offer
• 2. Acceptance
• 3. Consideration
• 4. Intention to Create Legal Relations

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OFFER-FINAL COMITTMENT

• INVITATION TO TREAT/ PUFFS
• Prices on articles displayed
• Pharmaceutical Society (G.B.) v Boots Cash
  Chemists (Southern) Ltd
• Fisher v Bell
• Tenders
• Advertisements/Price lists/Catalogues
• REQUEST FOR INFORMATION
• Harvey v Facey

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OFFERS

• CAN BE TO THE WORLD AT LARGE
• Carlill v Carbolic Smoke Ball Co (Selected
  Reading 7.1)
• Reward Cases

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OFFER-TERMS

• MUST CONTAIN DEFINITE TERMS
• MAY CONTAIN SPECIFIC CONDITIONS WITH REGARD TO
  ACCEPTANCE

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REVOCATION

• CAN BE REVOKED BEFORE ACCEPTANCE
• MUST BE NOTIFIED
• Byrne v Van Tienhoven
• Dickenson v Dodds
• NOT AUTOMATICALLY REVOKED BY THIRD PARTY
  ACCEPTANCE

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OFFER-TERMINATION

• EXPIRATION OF TIME LIMIT -(OPTIONS)
• Dickinson v Dodds
• Goldsbrough, Mort Co. Ltd v Quinn
• WITHIN A REASONABLE TIME
• Ramsgate Victoria Hotel Co v Montefiore

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OFFER-TERMINATION

• BY DEATH - FACTORS
• Personal to one of the parties
• Knowledge of death
• COUNTER OFFER
• Hyde v Wrench
• CONDITION NOT SATISFIED

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ACCEPTANCE

• By person to whom offer is made
• But may be to more than one
• Same terms and conditions
• No agreement to agree
• Masters v Cameron
• In response to offer
• R v Clarke
• Last offer accepted

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COMMUNICATION OF ACCEPTANCE

• Must be Communicated
• Powell v Lee
• Silence not acceptance
• Felthouse v Bindley

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EXCEPTIONS TO COMMUNICATION OF ACCEPTANCE

• When acceptance waived (action taken as
  acceptance)
• Smoke Ball Case
• Reward cases
• Acceptance implied from a course of dealings
• Clark v Dunraven
• The Postal Rule

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THE POSTAL RULEACCEPTANCE

• 1. When the use of the post is within the
  reasonable contemplation of the parties as the
  means of communication between them-Tallerman
  Co Pty Ltd v Nathans Merchandise (Victoria) Pty
  Ltd
• 2. Then acceptance is effective from the time of
  posting-Adams v Lindsell Henthorn v Fraser

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Electronic Communication (Reading 7.2)

• The Postal Rule does not apply at common law
• Place of acceptance
• Faxed acceptance
• E-mail acceptance
• Electronic Transaction Legislation
• Turner p315 for interest only

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ACCEPTANCE

• In Prescribed Manner
• Not Highest Offer

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SUMMARY

• Types and Forms of Contracts
• Elements of Contracts
• Offer
• Final Commitment
• Communicated
• Termination revocation and lapse
• Acceptance
• By offeree
• Same terms and conditions
• In response to offer
• Communicated

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Next Week

• Intention to create legal relations
• Consideration
• Promissory estoppel