Commercial Law Revision Notes
Contract = an agreement between two or more persons which will be enforced by a court of law
*Action for breach of contract is part of common (judge-made) law
*Essence of contract law is to protect the bargain bw 2 parties
*Must not engage in conduct that is misleading, unconscionable and unfair.
1. Formal contracts
Contracts of record (court records)
Contracts under seal (ie deeds, gratuitous comments)
2. Simple contracts
In writing
Evidenced in writing
No requirements
SIMPLE ROADMAP
Intention?
Agreement?
Consideration?
FORMING A CONTRACT
Offer - an offer must be made
Acceptance - offer must be accepted
Intention - the parties must intend to contract
Consideration - must be provided.
REMEDIES termination of a contract - available for serious breaches damages - innocent party gets monetary compensation for the loss of contractual benefits specific performance - party required to honour contractual obligations injunction - order by court requiring a person to stop doing something recovery of contract price - agreed damages clauses - contract itself makes provision for damages to be paid in the case of breach.
OFFER (p164)
An offer exists where a reasonable person would conclude from the facts that the person was willing for their promise to be binding in law. it is a question of intention.
Offerror - makes offer to the - offeree.
RULES OF OFFERS
Must be: intention or willingness to be bound a firm promise communication of the offer - writing, oral, by conduct
WHAT IS AN OFFER?
Distinguish offer from:
1. A Question
Harvey v Facey [1893] (p164 text)
Facey: merely a statement of future possibility - Facey answering Harvey's qu. court concluded - not offer
2. An Invitation to Treat retail pricing, advertising, auctions and tenders.
Partridge v Crittenden [1968] - advertisement
Partridge advertised 'bramblefinch for sale 25c' court concluded - not offer - merely ITT
Fisher v Bell [1960] retail on display with price attached court concluded - not offer
*Action for breach of contract is part of common (judge-made) law
*Essence of contract law is to protect the bargain bw 2 parties
*Must not engage in conduct that is misleading, unconscionable and unfair.
1. Formal contracts
Contracts of record (court records)
Contracts under seal (ie deeds, gratuitous comments)
2. Simple contracts
In writing
Evidenced in writing
No requirements
SIMPLE ROADMAP
Intention?
Agreement?
Consideration?
FORMING A CONTRACT
Offer - an offer must be made
Acceptance - offer must be accepted
Intention - the parties must intend to contract
Consideration - must be provided.
REMEDIES termination of a contract - available for serious breaches damages - innocent party gets monetary compensation for the loss of contractual benefits specific performance - party required to honour contractual obligations injunction - order by court requiring a person to stop doing something recovery of contract price - agreed damages clauses - contract itself makes provision for damages to be paid in the case of breach.
OFFER (p164)
An offer exists where a reasonable person would conclude from the facts that the person was willing for their promise to be binding in law. it is a question of intention.
Offerror - makes offer to the - offeree.
RULES OF OFFERS
Must be: intention or willingness to be bound a firm promise communication of the offer - writing, oral, by conduct
WHAT IS AN OFFER?
Distinguish offer from:
1. A Question
Harvey v Facey [1893] (p164 text)
Facey: merely a statement of future possibility - Facey answering Harvey's qu. court concluded - not offer
2. An Invitation to Treat retail pricing, advertising, auctions and tenders.
Partridge v Crittenden [1968] - advertisement
Partridge advertised 'bramblefinch for sale 25c' court concluded - not offer - merely ITT
Fisher v Bell [1960] retail on display with price attached court concluded - not offer