Contract Law

Contract Law

-Objective inference from the intention of the parties; what would a reasonable person would intend to do, what in fact was said and done by the parties and not what they intended to say.

CONTRACT ELEMENTS: for a contract to be binding upon English law it is necessary;
1. Offer
2. Acceptance of the offer
3. Certainty of the terms
4. Consideration
5. Intention to createlegal relations

1.- OFFER

What’s an offer?
Formation; Courts adopt the rue of contract formation ‘mirror image’ which means that there has to be a clear and unequivocal offer that matches with an equally clear and unequivocal acceptance.

Offer: statement by one party of a willingness to enter into a contract. There is no requirement that the offer be made in any particular form, orallyor written or by conduct.

Offer Intention to treat
Storer vs Manchester City Council An expression of willingness to enter into negotiations
Gibson vs Manchester City Council.
-Advertisements:
Carlill v Carbolic Smoke Ball Company it was decided that an advertisement was a unilateral contract. -Display of Goods for sale: the sale took place at the cash desk and not when the ods were takenfrom the shelve (Pharmaceutical Society vs Boots)
-Auction Sales: The offer is made by te bidder which is accepted by the auctioneer when it strikes the table with his hammer. The contract that comes into existence between the auctioneer and the highest bidder is a collateral contract, separate from that of the sale of the auctioned goods.
Barry vs Davies: when there is an offer and it iswithout reserve the offer is accepted by the highest bidder at auction.
- Tenders: Invitation to tender is an invitation to treat.
Blackpool Case: The local authority invited through a tender for concession to operate pleasure flights from Blackpool Airport. The tender was in the letterbox but wasn’t emptied at the time supposed to be (12 o’clock). The claimant’s bid was not consider due to latesubmission. The CA held that there were two contracts: the acceptance of the tender and to consider all the tenders.
-Timetable and vending machines:
Thornton vs Shoe: Queen’s Bench, Lord Denning stated that ‘an automatic machine which issued tickets outside a car park made a standing offer which is accepted by a motorist driving so far into the car-park’.



A contract had been concludedwhere the negotiations had advanced beyond the stage reached in Gibson but had not resulted in an exchange of contracts.

2.- ACCEPTANCE OF THE OFFER

Is an unqualified expression of assent to the terms proposed by the offeror. There is no rule that it must be made by words. Conduct will amount to acceptance if it is clear that the offeror did the act in question with the intention of acceptingthe offer.
If it is not accepted with all the terms and conditions, it will be considered a counter-offer.
Hyde vs Wrench: the defendant offered to sell some land for £1,000 and the claimant replied for £950. The defendant refused to sell for £950, there was no contract between the parties and there’s no obligation to sell the land for 1000 because there was already a counter-offer.*Knowing the offer: Gibbons vs Proctor. There was a reward for a person handling information about a crime. The police officer sent the information through his superiors and by the time it was informed to the super intendant of police, the handbills of the reward had reached the police officer. Was there an offer? Yes, he knew by then that there was a reward.

Acceptance of the offer is effective whenit is communicated to the offeree. A person who in ignorance of the offer performs the act or acts requested by the offeror is not entitled to sue as on a contract. Exception: by conduct and by postal rule.

The acceptance is generally only validly communicated when it is actually brought to the attention of the offeror.
Entores vs MilesFar: English company in London was in communication...