Contract Negligence
1 Task – 1
1.1 Importance of Essential Elements of Contract
Contract represents the instrument to enforce promises. Not all statements amount to enforceable promises or contracts. To enforce statements there are a number of elements which courts look for and these mainly include the presence of offer, its communication, its unconditional acceptance and communication of the acceptance. Once this has taken place then the element of consideration gives the badge of enforceability to the contract and the contract is then enforceable.
Offer is the serious expression of willingness which is made with the intention that it will become binding upon acceptance (Storer v Manchester City Council). However, not all statements made are offer. Statements which are not offer are called invitation to treat. An invitation to treat is the expression of willingness to hear from the other party which may or may not lead to a contract (Gibson v Manchester City Council). It is the seriousness of the term which matters and seriousness is reflected from the price which one states would be acceptable to him along with other terms.
For example, in Storer, the Council had sent the form to Storer along with price and all that was required on part of Storer was to sign it which he did. The Court held that the seriousness was evident from the price. However, in Gibson, the Council had sent Gibson a form but on the form it was written that the “Council may be prepared to sell”. The Court held that these words lacked seriousness therefore no contract arose between parties.
There are a number of instances whereby the statements made, said or written does not amount to offer but an invitation to treat. These include: display of goods (Fisher v Bell; Pharmaceutical Society of Great Britain v Boots), advertisements (Partridge v Crittenden), request for tenders (Harvela Investments ltd v Royal Trust Co of Canada ltd), auctioneer’s request for bids (Warlow v Harrison; Barry v Davies).
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1.1 Importance of Essential Elements of Contract
Contract represents the instrument to enforce promises. Not all statements amount to enforceable promises or contracts. To enforce statements there are a number of elements which courts look for and these mainly include the presence of offer, its communication, its unconditional acceptance and communication of the acceptance. Once this has taken place then the element of consideration gives the badge of enforceability to the contract and the contract is then enforceable.
Offer is the serious expression of willingness which is made with the intention that it will become binding upon acceptance (Storer v Manchester City Council). However, not all statements made are offer. Statements which are not offer are called invitation to treat. An invitation to treat is the expression of willingness to hear from the other party which may or may not lead to a contract (Gibson v Manchester City Council). It is the seriousness of the term which matters and seriousness is reflected from the price which one states would be acceptable to him along with other terms.
For example, in Storer, the Council had sent the form to Storer along with price and all that was required on part of Storer was to sign it which he did. The Court held that the seriousness was evident from the price. However, in Gibson, the Council had sent Gibson a form but on the form it was written that the “Council may be prepared to sell”. The Court held that these words lacked seriousness therefore no contract arose between parties.
There are a number of instances whereby the statements made, said or written does not amount to offer but an invitation to treat. These include: display of goods (Fisher v Bell; Pharmaceutical Society of Great Britain v Boots), advertisements (Partridge v Crittenden), request for tenders (Harvela Investments ltd v Royal Trust Co of Canada ltd), auctioneer’s request for bids (Warlow v Harrison; Barry v Davies).
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