Intention – SOCIAL OR DOMESTIC- do not intend to create legal relations. Balfour v Balfour (1912)
Categories of rebuttal – The nature of the document (if drafted by solicitor) - Agreement may expressly state legal relations
- Surrounding Circumstance may indicate intention Merritt v Merritt (1970) -Significant reliance on promise- consequences are sufficiently serious. Wakeling v Ripley (1951)
- COMMERCIAL NATURE- do intend to create legal relations. Edwards v Skyways (1964) Rebutted- Rose & Frank Co v JR Crompton & Bros Ltd (1925)
Letters of Comfort- State of current intentions for the future. Provide Comfort, not assurance. (Kleinwort Benson Ltd v Malaysia Mining Corporation Berhad 
Agreement- has been a valid offer and that it has been accepted. Manifestation by 2 or more persons to the substance of the contract. Would a reasonable person think an agreement had been entered. Can be shown by conduct. Does not have to be express words “I accept your offer” Offer:
1. Offers must be distinguished from an invitation to treat or request for information. – Intention to make offer- Carlill v Carbolic Smoke Balls Co. (1893) * Display of goods- Invitation to Treat. Pharmaceutical Society v Boots Cash Chemists. * Request for info does not create offer- Harvey v Facey  2. Offers must be communicated to the person or persons for whom it was intended. 3. Offer can be made to particular person, persons or whole world. – smoke balls case. 4. Offers may terminate- Revocation- Dickinson v Dodds Revocation must be communicated. * Rejection: Offeree says no.
* Counter-offer: offeree makes counter offer. Rejects original offer. Hyde v Wrench  * Lapse of Time- specified time, or reasonable lapse. Ramsgate Victoria Hotel Co Ltd v Montefiore  * Lapse by Death- Carter v Hyde
* Lapse by Failure of Condition: condition must happen before agreement becomes contract. Acceptance:
1. Acceptance must be in reliance on offer. R v Clarke (1927)- Tried to claim reward 2. Acceptance must be communicated- Silence is not acceptance. Felthouse v Bindley (1862) Postal Acceptance Rule: where acceptance by post is contemplated, acceptance occurs when letter is posted. Adams v Lindsell (1818) Communication of Acceptance- time an electronic communication is received is the time it enters an information system designated by the addressee to receive the info. If none has been designated, the time is when it comes to addressee’s attention. 3. Acceptance with condition is not acceptance. Masters v Cameron. 4. Acceptance cannot be revoked- cannot change mind after accepting, unless offeror agrees to release from contract.
No consideration means it’s a gift. Consideration cannot be vague, illegal or impossible. White v Bluett (1853) son promised to stop being a spoilt brat to his father. Consideration must move from the promisee, must do something in return for promise. When acts are performed at the promisors request before any promise of payment is made a contract can exist if there was an implied understanding that complying with the request would be ultimately paid for. -“Past consideration is no consideration”, may be future or present, but not past. Roscorla v Thomas  Consideration must be sufficient, adequacy is subjective and for parties to decide. Chappell & Co Ltd v Nestle Co Ltd  Performing an existing duty is not sufficient consideration. If already legally obliged to do something, it cannot be offered as consideration. Stilk v Myric  crew members of boat. Part Payment of Debt- not sufficient consideration unless something else is provided. Pinnel’s case. “payment of a lesser sum on the day in satisfaction of a greater, cannot be satisfaction for the whole, because it appears to the judges that by no possibility a lesser sum can be satisfaction to the plaintiff for a greater sum” Part payment is...
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