Contracts I Notes

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LAWS1017 – CONTRACTS I – CASE SUMMARIES

SESSION ONE – 2004

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OFFER Gibson v Manchester City Council Carlill v Carbolic Smoke Ball Co MacRobertson Miller Airline Services v Commissioner of State Taxation Australian Woollen Mills Pty Ltd v Commonwealth Offers distinguished from Invitations to Treat Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd Revocation of an Offer Goldsborough, Mort & Co v Quinn Mobil Oil Australia Ltd v Wellcome International Pty Ltd ACCEPTANCE Relationship between the Offer and Acceptance Crown v Clarke Communication of Acceptance Felthouse v Bindley Empirnal Holdings Pty Ltd v Machon Paull Partners Pty Ltd Brinkibon Ltd v Stahag Stalh Und Stahlwarenhandelsgesellschaft mbH Butler Machine Tool Co Ltd v Ex-Cell-O Corp (England) Ltd CONSIDERATION The Essential Elements Beaton v McDivitt Adequacy of Consideration Woolworths Ltd v Kelly Sufficiency of Consideration Past Consideration Roscorla v Thomas The Existing Legal Duty Rule Foakes v Beer William v Roffey Bros & Nicholls (Contractors) Ltd Musumeci v Winadell Pty Ltd Wigan v Edwards INTENTION Commercial Transactions Banque Brussels Lambert SA v Australian National Industries Ltd Domestic and Social Agreements Todd v Nichol Government Agreements Administration of Papua New Guinea v Leahy Preliminary Agreements Masters v Cameron PRIVITY Identifying the Contracting Parties Coulls v Bagot’s Executor and Trustee Co Ltd Circumventing the Privity Rule Trident General Insurance Co Ltd v McNiece Bros Pty Ltd CERTAINTY Completeness Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd Certainty Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd Implying Objective Standards Biotechnology Australia Ltd v Pace Whitlock v Brew Hall v Busst Agreements to Negotiate Aiton Australia Pty Ltd v Transfield Illusory Promises Meehan v Jones Godecke v Kirwan Placer Development Ltd v Commonwealth ESTOPPEL Je Mainiendrai Pty Ltd v Quaglia Waltons Stores (Interstate) Ltd v Maher Commonwealth v Verwayen Giumelli v Giumelli WvG

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KEVIN K KO

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LAWS1017 – CONTRACTS I – CASE SUMMARIES

SESSION ONE – 2004

Gibson v Manchester City Council
[1979] 1 All ER 972

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FACTS
The council had retracted its offer to sell council houses to tenants, however would still honour contracts that had already been made. The appellant claimed that a letter received from the council constituted a contractual offer for sale.

ISSUES & REASONING
• • • • A contract requires the ingredients of offer and acceptance. The letter stated “the corporation may be prepared to sell the house to you”… “if you would like to make formal application to buy your council house…” This clearly suggested that it was not a contractual offer of sale of the council house, but merely a letter setting out the terms on which the council may be prepared to consider a sale and purchase in due course. Thus, the letter from the council was not a contractual offer.



RATIO
A contract requires a firm offer to be legally enforceable.

OUTCOME
• The appeal was allowed – Gibson was denied the right to purchase the house.

KEVIN K KO

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LAWS1017 – CONTRACTS I – CASE SUMMARIES

SESSION ONE – 2004

Carlill v Carbolic Smoke Ball Co
[CB-33-38] [1893] 1 QB 256

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FACTS
Defendants manufactured Carbolic Smoke Balls which claimed to prevent cold and influenza. Carbolic Smoke Ball Co promised a reward in a newspaper advertisement which stated: “a 100 pound reward will be paid to any person who contracted a cold or influenza after having used the device 3 times a day for 2 weeks” – according to the directions. The advertisement also said that 1000 pounds had been deposited at Alliance Bank “shewing our sincerity in the matter”. The plaintiff used the product for 2 months but still contracted the...
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