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61389
Offer and Acceptance
Description
Contract Mind Map on Offer and Acceptance, created by gabriellafearns on 29/04/2013.
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contract
contract
Mind Map by
gabriellafearns
, updated more than 1 year ago
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gabriellafearns
over 11 years ago
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Resource summary
Offer and Acceptance
FORMATION OF CONTRACT
Pre-Contractual phase
British Steel Case
Held -- there was no contract, they had failed to agree a price and the issue of liablity. HOWEVER did extra-contractual cause of action restitution
NB/ Ball contends in LQR 1993 - law should take a more flexible approach however Andrews says this would ruin freedom of contract.
RTS v Muller
there was a 'subject to contract' bar --> SC held that where the parties completed 3/4 of the tasks they implicitly waived StoC bar.
Lord Clarke - says StoC is not always conclusive - may find a contract where (i) significant performance (ii) loose ends tied up.
Agreements prior to formation of contract NB English law X recognise 'good faith'
Walford v Miles
Good faith would be too vague and would require the courts to inquire - drenched in subjectivity.
Could have a 'lock out' clause if period is fixed.
Main aspects of proposed transaction
Queensland Electric v Hope Colleries
15 yr supply contract - said after 5 years provisions shall continue - tried to argue that this was no more than an agreement to agree - held OBJ.
ANCILLARY AGREEMENTS
Petromec v Petroelo
suggests a 'built-on' negotiation clause may be valid.
Longmore LJ --> says (i) uncertainty (ii) termination (iii) diff to assess loss HOWEVER if this is ancillary certainty is dealt with in main agreement
OFFER
Clear unequivocal willingess to be bound upon the offerees acceptance
Contrast - INVITATION TO TREAT
British Pharmaceutical v Boots - held that taking off shelves not acceptance at most it is an offer to the cashier.
ACCEPTANCE
(i) Awareness of the offer Taylor v Allon - offered temp insurance and didnt know
(ii) Must not have forgotten about the offer Gibbons v Proctor
NB/ action does not have to be in response to offer Williams v Carwardine - told them information so wouldn't go to hell on death bed.
Sequential analysis Gibson v Manchester CC
PROBLEM OF SILENCE
Felthouse v Bindley - silence will not suffice, vulnerable and equivocal.
Rust v Abbey Life - failed to cancel insurance for 7 years - held acceptance
Nissan v Nissan - Exchanged Faxes , delivering CofA held actions spoke as loud as words
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