Contract Law Bible (Uk Legal System)

Topics: Contract, Misrepresentation, Contractual term Pages: 46 (12733 words) Published: January 13, 2013
The Contract Law Bible
Hey Guys. I worked really hard on this on the run up to the June exam last year. I found it really useful and so did the people in my class. Please feel free to pass this on to your friends who are studying contract law, but please don't pass it off as your own, or make any money from the reproduction of this. Thanks =) Lucy Rimington ©

Offer and Acceptance Offer - A proposal to enter into an agreement with another person. An offer must express the intent of the person making the offer to form a contract, must contain some essential terms--including the price and subject matter of the contract--and must be communicated by the person making the offer. A legally valid acceptance of the offer will create a binding contract. E.g. Would you like to buy my house for £100,000? Invitation to Treat •

Goods Displayed on Shelves o Pharmaceutical Society GB v Boots Cash Chemists [1953] o Pharmacy and Poisons Act 1933 – chemist to be present at point of sale. Point of sale was cash desk, displaying of product was invitation only.  Freedom of contract preserved – shops can refuse sale Goods Displayed in Shop Window o Fisher v Bell [1961]  Offensive Weapons Act 1959 – sale of prohibited weapons. Failed as display was not sale, rather invitation to treat. Advertisements o Partridge v Crittenden [1968]  Protection of Birds Act 1954 – “Bramblefinch cocks and hens 25s each” not an offer. Lack of objectivity o Gibson v Manchester City Council [1979]  Gibson invited to buy house. Council invited application on “may be prepared to sell” basis. Not an offer. Mere statement of price o Harvey v Facey [1893]  Sale of Penn. H: “telegram lowest price”. F: “lowest acceptable £900”. Not an offer, merely statement. Lots at Auction o Harris v Nickerson [1873]  Furniture listed in catalogue, Harris hoped to buy. Items withdrawn. Advertising was invitation to treat, acceptance only at fall of hammer. o British Car Auctions v Wright [1972]  Prosecution for offering for sale an unroadworthy car. No offer to sell at auction only an invitation to bid. Failed.

Not Invitation to Treat

Unilateral Offer o Carlill v Carbolic Smoke Ball Company [1893]

Promise to pay £100 for using smoke ball as directed and catching influenza in advert was an offer that could be accepted by anyone. Acceptance by performance  This was an offer not a mere trade puff as the Carbolic Smoke ball co. claimed. Statement of Price where offer is intended o Biggs v Boyd Gibbins [1971]  B: “for a quick sale I will accept £26,000”. Boyd Gibbins accepts and Biggs affirms. There is an offer and acceptance. Competitive tendering o Spencer v Harding [1870]  Invitation to submit tenders is not an offer to sell to highest bidder. o BUT: Harvela Investments v Royal Trust of Canada [1986]  Advert stipulated sale to highest bidder. Lowest bidder stated $2,100,000 or £101,000 in excess of any other. H sued successfully. Wording ensured offer could only be accepted by the highest bidder. o Blackpool and Fylde Aero Club v Blackpool BC [1990]  Council put up airport pleasure flight usage for competitive tender. Stated not bound by any bid. Tender time closed early. RR Helicopters won. Council discovered mistake and re-run but legal threat from RRH. Court acknowledged implied undertaking to operate by the set rules. Auctions without reserve o Warlow v Harrison [1859]  Collateral contract created between the highest bona fide bidder and the auctioneer himself when the auctioneer refuses sale. o Barry v Heathcote Baal & Co. [2000]  Auction without reserve withdrawn, thus auctioneer refused sale to claimant (2 x £200). Then sold privately for £750 each. Existence of collateral contract - £27,600 damages.  The court accepted the rule in Warlow v Harrison 


Must be communicated to the offeree o Taylor v Laird [1856]  Taylor gave up captaincy and worked as member of crew, wages claim failed, owner had...
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