BTF1010 Chapter Notes - Chapter 1: Gijsbert Van Tienhoven, Puffery
6 Jun 2018
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Contract Law
To have a contract, you need to have four things:
For a contract to exist, the parties must intend their agreement to be legally binding. Therefore, either could
sue if it is breached.
1) Offer
• Has an offer been made?
• One of the parties must have made an offer
2) Acceptance
• The offer must have been accepted by the other party
• If a valid offer and acceptance exists, an agreement exists
3) Intention to form a legal contract
• The parties of agreement must have intended their agreement to be legally enforceable
4) Consideration: something of value given for a promise
• The common law requires the promise to provide consideration to the promisor in order for the
promise to be enforceable
OFFER
Rules of an offer:
• Must be communicated to offeree (oral, writing or by conduct)
o Case: Byrne v Van Tienhoven
o Offer is revoked when the offeror formally withdraws the offer
o Offer comes to an end and can’t be subsequently accepted
o To be effective, the revocation of an offer must be communicated to the offeree
• May be made to one or more people
o Case: Carlill v Carbolic Smoke Ball Co
o Issue: Does one who makes a unilateral offer for the sale of goods by mean of an ad
indirectly waive notification of acceptance?
o Whether the ad was an offer or a “mere puff” and not regarded as a binding contract?
o The offer was made to the world at large, as a general advertisement, therefore can be
accepted by anyone who reads the ad
• May be revoked or lapse: if not accepted within reasonable time/time stated
Counter-offer
Document Summary
To have a contract, you need to have four things: For a contract to exist, the parties must intend their agreement to be legally binding. Therefore, either could sue if it is breached: offer, has an offer been made, one of the parties must have made an offer, acceptance, the offer must have been accepted by the other party. It implies rejection of the original offer: no binding contract until counter-offer is accepted, case: hyde v wrench (1840, there was no agreement, the earlier offer was terminated by hyde"s counter-offer. Request for information: not a counter offer, the offer does not lapse, case: stevenson jaques & co v mclean (1880, there was nothing specific by way of offer/rejection but a mere inquiry. Invitation to treat and offers: an indication of willingness to deal or trade is not an offer, case: harvey v facey (1893, no contract existed. The acceptance of offer was an offer to buy at price stated.
