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Legal Issues for Accountants

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Legal Issues for Accountants
ACCT90015 Legal Issues for Accountants

Week 4

This Week Page Title / heading goes here

Topics
• What is a contract • Formation of a contract • Equitable estoppel

Contract Page Title / heading goes here

Meaning
• An agreement that the law recognises as a contract

Formation of a Contract Page Title / heading goes here

Requirements
• Offer • Acceptance • Consideration • Certainty of terms • Intention to create legal relations • Formalities

Offer Page Title / heading goes here

Promise
• A final proposition made by one party Ø compare Macquarie Generation v CNA Resources Ltd [2001] NSWSC 1040 (Unreported, Palmer J, 15 November 2001) (‘subject to the Board’s approval’) Ø question of substance, not form (see, eg, Australian Woollen Mills Pty Ltd v Commonwealth (1954) 92 CLR 424)

Scope
• May be made to the world at large Ø Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, 268 (Bowen LJ)

Offer Page Title / heading goes here

Distinguished from Invitation to Treat
• Invitation to make an offer (ie non-promissory) (see, eg, Harvey v Facey [1893] AC 552) Ø ‘cases in which you offer to negotiate, or you issue advertisements that you have got a stock of books to sell, or houses to let, in which case there is no offer to be bound by any contract. Such advertisements are offers to negotiate — offers to receive offers’: Carlill [1893] 1 QB 256, 268 (Bowen LJ) • Examples Ø Partridge v Crittenden (1968) 132 JP 367 (advertisement) Ø Grainger v Gough (Surveyor of Taxes) [1896] AC 325, 334 (price list) Ø Timothy v Simpson (1834) 6 C & P 499, 500; Fisher v Bell [1961] 1 QB 394; Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 (shop displays) Ø Spencer v Harding (1870) LR 5 CP 561 (tenders); compare Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR 151 Ø Payne v Cave (1789) 3 TR 148; Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR
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