Law paper 3

• Contract need not be in writing to be legally enforceable, an oral agreement is valid. However three contracts must be in writing- Sale of land, consumer credit agreements, contract of employement
• Bilateral/ unilateral - Bilateral means that BOTH parties take on an obligation, usually by promising something e.g. restaurant or hairdresser. Unilateral- arises when only one party assumes an obligation - carlill v carbolic smokeball.
• offer/ITT- The starting point for a contract. A statement of the terms upon which the offer is willing to enter the contract. It can be made to a person or the whole world at large. IT MUST BE FULLY COMMUNICATED TO THE OFFEREE.
• ITT-merely an indication of willingness to start negotiations and is not an offer
• ITT- Advertisement in a newspaper or magazine- partridge v crittenden.
• Goods in a shop window - fisher v bell
• self service shop- pharmaceutical society v boots
• auctions harris v nickerson
• giving information- Harvey V Facey
• • Requesting information- Stevenson V McClean
• Offer- Vending machines makes the offer
• Revocation can be by a reliable third party. OIR
• There can be no revocation once performance has begun-Errington V Errington
• Acceptance- once the offer is accepted there is a contract
• If the offeror states that his offer must be accepted in a particular way, then only acceptance by that method or an equally effective one will be binding- Tin V Hoffman
• Exception to postal rule- If the offeror states acceptance will only occur when it is communicated to them- Holwell securities
• Consideration- Means that each party to the contract must give something (executed) or promise to give something (executory) of some monetary value
• Consideration need not be adequate but it must be sufficient. Adequate- whether the consideration is adequate is a matter for the parties to decide- Thomas V Thomas.
• Sufficient- Be real/tangible/ have some actual value (monetary value) Chappel V Nestle (1959)
• Duty imposed by law- Performing a duty required by law is NOT sufficient consideration Collins V Godefroy. However, if you go beyond legal duty it IS sufficient consideration. Glasbrook V Glamorgan
• Part payment of debt- Even if it is agreed that only part of the payment will be sufficient it is still consideration to ask for the full payment back- PINNEL 1602
• Past Consideration- Past consideration is defined as something already done at the time the contract was made. Where the consideration is past, there will be no contract- Re McArdle
• Re Casey patents- Where there is an expectation of payment as in a commercial agreement or professional contract
• Privity of Contract- The simple rule is that a person who is not a party to the contract can neither sue nor be sued under it.
• Oxford definition of Justice- "just conduct; fairness
• Justice according to the law can be PROCEDURAL, SUBSTANTIVE OR CORRECTIVE
• Intention to create legal relations- The parties to a contract must intend the agreement to be legally binding. The general principle is that this is implied in commercial agreements. McGowan V Radio Buxton 2001
• ITCLR is presumed not to exist in social or domestic agreements- Balfour V Balfour (domestic) Simpkins V Pays (social). The law will not enforce a contract if it is not legally binding
• Terms- Where the parties have agreed between themselves and define their obligations. If broken this is a BREACH