basics concepts

• contact 


  a legally binding agreement which means if broken the wronged party may enforce the agreement through the courts
• Essentials to a legall binding contract 


  1. agreement
  2. certainty
  3. consideration
  4. intention to create legal relations
  5. genuine consent
  6. formalities
• 1. agreement 


  achieved by offer and acceptance
• 2. certainty 


  an agreement must be certain to be binding i.e should not be vague or incomplete
• 3. consideration (except contracts in form of a deed)


  exchange element of the contract
• intention to create legal relations

  if parties make an agreement without any intention of legally bound by it, won't by regarded as binding
• genuine consent

  may be destroyed by (inter alia) the vitiating factor of misrepresentation: a false statement of fact that encouraged the other party to enter into the contract

   

   
• FORMALITIES (some types of contracts have to be in a particular form


  DEED

  WRITING/SIGNED

  INTERNET AND EMAIL
• DEED 


  law of property 1925

  -lease of 3 years = must have a witness
• writing/signed

  law of property (miscellaneous provision) act 1989

  • contracts for sale or deposition of interest in land

  Companies Act 1985 

  -       Transfer of shares in a limited company

                          

        Bills of Exchange Act 1882 

  -       Bills of exchange, cheques and promissory notes

                          

         Consumer Credit Act 1974

  -       Hire purchase contracts
• internet and email

     Electronic Commerce (EC Directive) Regulations 2002

  -     Clear account of steps to be followed to complete the contract, must provide receipts for orders without delay, allow customers to change order easily before buying, provide information such as business email address

   

       Electronic Communications Act 2000

  -       Allows for electronic contracts and signatures
• valid/ enforceable contracts 


  will be upheld by the courts
• vitiating factors

  Factors were present (misrepresentation, mistake, duress, undue influence, illegality) which mean there was no genuine consent of the parties - renders the contract either void or voidable, depending on which vitiating factor is present 

   

   
•  Unenforceable contracts

     Will not be upheld by the courts
• void contracts

  If a contract is declared void (e.g. because of mistake or illegality), the effect is that there never was a contract, so neither part can enforce the agreement

   

   
• Voidable contracts

  If e.g. there is misrepresentation or duress, the innocent party can choose whether or not to be bound by it, i.e. avoid the contract or continue with it

   
• Bilateral contracts (majority of contracts)

  Each party takes on an obligation, usually by promising the other something, e.g. where A promises to sell something and B promises to buy it.

   
• Unilateral contracts

  Arise where only one party assumes an obligation, e.g. I promise to pay £50 to anyone who finds my missing cat – means I am obliged to pay this reward to anyone who finds my cat but nobody is obliged to do so. 
• What is the case name of the legal decision discussed in the study material?

  Carlil v Carbolic Smoke Ball Co
• What did the smoke ball manufacturers advertise as a reward for using their product?

  £100 for anyone who used the smokeballs as directed and got influenza
• How much money did the manufacturers claim to have deposited to cover potential claims?

  £1000
• What action did P take after using the smoke balls as prescribed?


  P demanded the £100 offered by D
• What were the two main grounds on which D resisted P's claim?


  The advert was not an offer to a particular person and P had not communicated acceptance
• What did the Court of Appeal hold regarding the nature of the advertisement?


  The advertisement constituted an offer to the world at large
• What type of contract was formed when Mrs. Carlill accepted the offer?


  A unilateral contract
• What was the outcome for Mrs. Carlill in the case?


  She was entitled to the £100