LAWS104 Lecture Notes - Lecture 2: Australian Turf Club, Paull, Mobil
9 May 2018
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LAWS104 Notes
Week 2 [Agreement – Offer & Acceptance]
Contract Formation
- Agreement (offer and acceptance)
- Consideration (exchange of something of value)
- Intention (to create legal relations)
Agreement (Consisting of Offer & Acceptance)
- An offer and acceptance must be present for there to be an agreement
- Courts objectively consider the words and conduct of the parties (chronologically) to
see whether an offer has been made and, if it has, whether it has been accepted
- Courts use this kind of analysis to determine whether agreement exists, where and
when agreement was reached and the express terms of that agreement
Offer
- Crest Nicholson (Londinium) Ltd v Akaria Investments Ltd [2010] EWCA Civ 1331
o Stateet upo hih ake is pepaed to e oud
- Gibson v Manchester City Council [1979] 1 All ER 972
o I deteiig hethe a offe has ee ade the oet appoah is to
ask whether [the offeree] (having the knowledge of the relevant
circumstances which [the offeree] had), acting reasonably, would understand
that [the offeror] was making a proposal to which he intended to be bound in
the eet of a ueuioal aeptae
- If no offer is present, then there cannot be an agreement, and thus there cannot be
a contract
- Has promissory intent
Invitation to Treat
- The general rule is that circulars, catalogues and advertisements setting out price
lists or promoting sale of products are invitations to treat
o Partridge v Crittenden [1968] 2 All ER 421
o Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB
401 (goods on display)
o Harris v Nickerson (1873) LR 8 QB 286 (auctions)
o Lefkowitz v Great Minneapolis Surplus Store (1957) 86 NW 2d 689
(advertisements if worded as an offer)
o Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 (unilateral offers)
Tenders
- The call is an invitation to treat, and the tender is an offer
- Harvela Investments Ltd v Royal Trust Co of Canada (Cl) [1986] 1 AC 207
o But if the iito states the est tede ill be accepted, then a contract
arises with the party submitting the best tender
- Blackpool & Fylde Aero Club v Blackpool Council [1990] 3 All ER 25
find more resources at oneclass.com
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Document Summary
An offer and acceptance must be present for there to be an agreement. Courts objectively consider the words and conduct of the parties (chronologically) to see whether an offer has been made and, if it has, whether it has been accepted. Courts use this kind of analysis to determine whether agreement exists, where and when agreement was reached and the express terms of that agreement. Crest nicholson (londinium) ltd v akaria investments ltd [2010] ewca civ 1331 (cid:858)state(cid:373)e(cid:374)t upo(cid:374) (cid:449)hi(cid:272)h (cid:373)ake(cid:396) is p(cid:396)epa(cid:396)ed to (cid:271)e (cid:271)ou(cid:374)d(cid:859) If no offer is present, then there cannot be an agreement, and thus there cannot be a contract. The call is an invitation to treat, and the tender is an offer. Harvela investments ltd v royal trust co of canada (cl) [1986] 1 ac 207: but if the i(cid:374)(cid:448)ito(cid:396) states the (cid:858)(cid:271)est(cid:859) te(cid:374)de(cid:396) (cid:449)ill be accepted, then a contract arises with the party submitting the best tender.
