LAW2101 Lecture Notes - Lecture 1: Public Property, United Nations Convention On Contracts For The International Sale Of Goods, Peter Gibson
LAW2101'CONTRACT'A'-'CASE'SUMMARIES'AND'KEY'POINTS'
!
TOPIC'1:'OFFER'
Offer'is'an'indication'by'one'person'to'another'of'his'or'her'willingness'to'enter'into'a'contract'with'that'
other'person'on'certain'terms'
TYPES'OF'CONTRACT'
Unilateral'Contract'
Bilateral'Contract'
Multilateral'Contract'
• 2"parties"to"the"contract"(i.e."A"
and"B)"
• Only"1"promise"is"made"(e.g."A"
promises"to"pay"$100"to"B"if"B"
finds"A’s"lost"puppy)"
• B"accepts"A’s"offer"when"B"
performs"the"stipulated"task"
(i.e."contract"is"formed"when"
B"completes"performance)""
• B"is"not"obliged"to"perform,"
but"A"is"obliged"to"pay"when"B"
has"performed"(i.e."only"one"
party"has"an"obligation)"
*Note:'Revocation"possible"whilst"
B"is"completing"the"agreement"
• 2"parties"to"the"contract"(i.e."A"
and"B)"
• Both"parties"exchange"a"
promise/promises"for"each"to"
do"something"in"the"future"
(e.g."sale"of"second"hand"book"
under"the"agreement)""
• Both"A"and"B’s"promises"are"
executory"(i.e."to"be"
performed"at"some"point"after"
the"contract"is"formed)"
• Contract"between"more"than"
two"parties.""
• Most"features"of"bilateral"
contracts"apply,"though"there"
could"be"other"special"
features"as"well""
"
Case'
Findings'
Gibson'v'Manchester'Council'
• Manchester"CC"wrote"to"Gibson:""
o “The"corporation"may"be"prepared"to"sell"
the"house"to"you"for"£2725”"(less"20%)""
o “This"letter"should"not"be"regarded"as"a"firm"
offer"of"a"mortgage”"
o “if"you"would"like"to"make"formal"application"
…"please"complete"the"enclosed"application"
form”"
• Gibson"completed"the"application"form"and"
returned"the"form"to"the"Council"
• Change"of"government"election"(i.e."new"local"
council"stopped"all"proposed"sales)"
• Gibson"sought"to"enforce"the"sale"(by"specific"
performance)"
Ø Approach'(Denning)'(Court'of'Appeal'-'2:1'for'
Gibson):“look"at"the"correspondence"as"a"whole"
and"at"the"conduct"of"the"parties"and"see"
therefrom"whether"the"parties"have"come"to"
agreement"on"everything"that"was"material”"–"
Departed"from"conventional"approach"of"offer"
and"acceptance'
Ø Approach'(Lord'Diplock)'(House'of'Lords'–'
Unanimous'for'Council):'No"reason"here"to"
depart"from"conventional"approach"of"
construing"the"documents"to"identify"a"clear"
offer"and"acceptance,"but"acknowledges"the"
possibility"of"departing"in"exceptional"types"of"
contracts"that"do"not"fit"easily"into"the"normal"
analysis"of"offer"and"acceptance'
v “may"be"prepared"to"sell”"and"request"for"
“formal"application”:"Fatal"and"make"it"
impossible"to"construe"letter"as"a"firm"
contractual"offer"
*Note:"Look"at"all"the"facts"–"In"Storer"agreement"
existed"due"to"it"going"further"
Carlill'v'Carbolic'Smoke'Ball'
• £100"reward"will"be"paid"by"the"Carbolic"Smoke"
Ball"Co"to"any"person"who"contracts"…"influenza,"
colds"…"after"having"used"the"ball"three"times"
daily"for"two"weeks"according"to"the"printed"
directions"supplied""
Would'a'reasonable'person'in'the'offeree’s'position'
view'that'an'offer'was'intended'and'would'be'
binding'upon'agreement?'
Ø Offer'existed:'
v Advert"was"not"a"promise/offer"(i.e."Was"a"
mere"puff"–"they"did"not"intend"to"be"
LAW2101'CONTRACT'A'-'CASE'SUMMARIES'AND'KEY'POINTS'
!
• During"the"last"epidemic"of"influenza"many"
smoke"balls"were"sold"and"in"no"case"was"the"
disease"contracted"by"those"using"the"balls"
• £1000"is"deposited"with"the"Alliance"Bank,"
Regent"St,"showing"our"sincerity"in"the"matter"
• Carlill"used"the"smoke"ball"as"directed"and"
contracted"the"flu"
• Carlil"Claimed"for"the"£100,"but"Carbolic"
Smokeball"Co"refused"to"pay"and"argued"that"
there"was"no"contract"
o Offer:"Refer"to"findings"
o Intention:"No"intention"to"be"legally"bound""
o Acceptance:"Refer"to"findings"
o Consideration:"Refer"to"findings"
o Certainty:"Offer"terms"(i.e."the"advert)"too"
vague"and"open"ended"
bound):"Clearly"an"offer"and"not"a"puff"due"
to"the"deposit"to"Alliance"Bank"
v Too"vague:"Advert"was"not"too"vague"
v No"time"limit:"Time"limit"would"be"by"
reference"to"a"reasonable"time"or"during"use"
v No"means"of"checking"or"monitoring"use"
v No"offer"can"be"made"to"the"world"at"large:"
Possible"to"make"offer"to"the"public"at"large"
Ø Acceptance'existed:'Carlill"did"not"communicate"
acceptance:"Accepted"by"performance'
Ø Consideration'existed:'No"consideration"moved"
from"Carlill:"Use"of"smoke"ball"constituted"
benefit"to"D"and"detriment"to"P'
MacRobertson'Miller'Airline'Services'v'
Commissioner'of'State'Tax'(WA)'
• MM’s"practice"was"to"first"quote"the"fare"and"
availability"of"seats"and"then"to"issue"a"ticket"in"
return"for"the"fare'
• Ticket"contained"conditions"giving"MM"the"right"
to"cancel"a"flight"or"a"booking"without"incurring"
any"liability'
Ø HCA'Finding'(Unanimous):'Ticket"did"not"record"
the"terms"of"an"agreement,"but"rather"the"terms"
of"an"offer"which"was"subsequently"accepted"by"
conduct'
Ø Approach'(Barwick'CJ):'
v "Sweeping"exemption"left"no"room"for"
obligation"to"carry"the"passenger"
v Passenger"makes"the"offer"by"presenting"at"
the"airport,"and"airline"accepts"by"carrying""
(i.e."ticket"is"an"invitation"to"treat)"
Ø Approach'(Stephen'J):"Ticket"constitutes"an"offer"
by"the"airline"capable"of"acceptance"or"rejection"
by"the"passenger"when"he/she"has"had"
reasonable"opportunity"to"read"the"condition"
(i.e."ticket"only"records"terms"of"an"offer)"
Ø Approach'(Jacobs'J)'–'Obiter:'When"the"person"
who"purchases"the"ticket"is"not"the"customer,"
there"will"be"2"contracts""
v Executory"agreement"between"purchaser"of"
ticket"and"airline"
v Issue"of"ticket"will"constitute"offer"made"to"
passenger"which"passenger"can"accept"by"
presenting"themself"for"travel"
'
OFFERS'DISTINGUISHED'FROM'INVITATIONS'TO'TREAT'
Shop'sales'
Case'
Findings'
Pharmaceutical'Society'of'Great'Britain'v'Boots'
Cash'Chemist'Ltd'
• Boots"operated"a"self"service"shop"
• Items"on"shelve"that"required"the"supervision"of"
Pharmacists"before"sale"
• Pharmacist"at"cash"register"
Ø Goods'on'shelves'cannot'be'considered'an'
offer:'Customers"are"entitled"to"return/exchange"
product"they"have"selected"back"onto"shelf"–"
Customer"makes"offer"to"purchase"at"register'
'
Statute'
Interpretation'
Document Summary
Offer is an indication by one person to another of his or her willingness to enter into a contract with that. B completes performance: b is not obliged to perform, but a is obliged to pay when b has performed (i. e. only one party has an obligation) Carlill v carbolic smoke ball: 100 reward will be paid by the carbolic smoke. Ball co to any person who contracts influenza, colds after having used the ball three times daily for two weeks according to the printed directions supplied. Gibson): look at the correspondence as a whole and at the conduct of the parties and see therefrom whether the parties have come to agreement on everything that was material . Departed from conventional approach of offer and acceptance. Approach (lord diplock) (house of lords . Formal application : fatal and make it impossible to construe letter as a firm contractual offer.
