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AS and A Level: Law of Contract
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- Marked by Teachers essays 8
Using relevant case law explain why the distinction between an invitation to treat and an offer is important in Contract law.3 star(s)
An individual or organisation can make an offer to another individual (bilateral) another company or to anyone in the world (unilateral). An offer can be "express"- for example if A tells B he will sell his radio for �30. An offer can also be "implied" from conduct - for example when A brings goods to the supermarket cash desk. It is tough to differentiate between an invitation to treat and an offer as it depends on the intention of the party making an invitation to treat which is shown in Pharmaceutical Society of GB v Boots Cash Chemists Ltd  1 QB 401, where the defendants changed the format of their shop from a counter service to self-service.
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Capacity - if an individual wishes to enter into a contract, they must have the legal capacity and therefore must have the mental capacity to do so, cannot be bankrupt or underage. Consideration - each party involved in the contract must receive something of value. There are two types of consideration - Executed consideration is a promise that has been performed which means that the offeror is obliged to act on their side of the promise. Executory consideration is a promise that will be performed in the future Acceptance - an expression of absolute and unconditional agreement to all the terms set out in the offer.
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One problem is perceived to be the idea of trials lasting several months for jurors. Not many people can commit themselves to the time involved and those who can are felt to be unrepresentative of the public at large. The advantage is that White-collar fraudsters would not escape justice through failings in the legal system. The judge-only trials would be shorter, more efficient and maybe more effective. The problems of handling complex fraud trials have been highlighted over a number of years e.g. by Lord Justice Auld. There are other cases that might benefit from being heard without a jury.
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If a criminal offence is found then the DPP is informed, who will decide whether to proceed with a prosecution. There are two means of redress: the complaints process and civil action. In order to lodge a complaint, the complainant needs to submit it in writing to the police force in question. The chief constable then decides how the complaint should be dealt. This could either be by means of an informal resolution or a formal resolution. An informal resolution is merely an apology and an explanation; as long as this is satisfactory then this is acceptable.
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A notice can be given in three ways: notice by display (Olley v. Marlborough Court); notice in a document (Parker v. South Easteern Railway, Chapelton v. Barry Udc); notice by a course of dealing (Henry Kendall v. William Lillico). In the absence of fraud if a party signs the document containing the exclusion clause then it is conclusive evidence that the clause has been incorporated into the contract as a term of the contract (Parker v. South Eastern Railway). And it is immaterial that the party signing the document is illiterate or even blind (L'estrange v.
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Privity. The rule of privity has developed significantly in the law of contract, over the twentieth century, due to fundamental chances in statute and the development of case law.
It was deemed even by getting married T had not provided sufficient consideration and could not sue. Further, quite relevantly argued T was not a 'party to the contract' and perhaps this was because he did not provide sufficient consideration. A further establishment of the rule of privity was given by the Judgement of Viscount Haldane in the case of Dunlop v Selfridge. In the decision Dunlop's action failed because they had provided no consideration to Selfridge. Crucially, however, Viscount Haldane stated it is a fundamental principle that 'only a person who is a party to a contract may sue upon it'.
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This destruction was without the fault of either party and was so complete that in consequence, the concerts could not be given as intended. When framing their agreement, the parties had not considered the occurrence of such events and as such had no express stipulation with reference to it. The plaintiffs sought damages in the amount of moneys spent for advertising and other preparations for the concerts. It was held, as stated by Lord Blackburn, that the Music Hall having ceased to exist, without fault of either party, both parties are excused; the plaintiffs from taking the gardens and paying
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This outlined the basic rule that a duty covered under an existing contract cannot be sufficient consideration for a new promise. Shadwell v Shadwell is the first illustration of an exception to the basic rule, that an existing contractual duty to a third party can be used as good consideration for a fresh deal. In the case of Shadwell v Shadwell, a nephew had made a promise to marry, which at the time was an enforceable contract and the uncle later promised that he would pay his nephew �150 a year until he was earning �600 a year as a barrister.
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A clear example is given by Justice Blackburn who ruled on two similar cases within months of one another. In the case of Bettini v Gye, the warranty cannot be repudiated, but may claim damages, whereas with Poussard v Spiers the condition can both repudiate and claim damages. The term, 'the machine is able to pick potatoes at the rate of 100 per minute' is a condition which goes to the root of the contract. It is important to Barry that the machine picks potatoes faster than by hand, otherwise there would be no need for him to purchase the machine.
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And the man was rewarded with the nice fur coat. However things that appear to be an offer at first my indeed turn out not to be, as in the case of Fischer V. Bell (1961) whereby The restriction of offensive weapons act (1889) stated it is an offence to offer for sale a flick-knife, (amongst others). A shopkeeper keeps a flick-knife in a window. He was taken to court. It was held that the flick-knife in the window was invitation to treat.
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Generally, silence of the offeree does not constitute an acceptance of the offer. The reason for this is because acceptance requires that the offeree must express, either by words or by conduct
Then, the offeree must communicate his intention to the offeror in order for there to be a valid contract. The idea of communication of the acceptance has been applied very literally so that there is a supposed rule that silence cannot amount to an acceptance. This rule, however, must be treated with some caution. The case which established the proposition that silence cannot amount to an acceptance is Felthouse v Bindley.1 In this case an uncle offered to buy a horse from his nephew.
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The case has since been subjected to publicity since the incursion of the Human Rights movement and the resultant policy concerns. In this question, it establishes relationship between the two parties, Peter and Mary. It is a promise or a set of promises. It is defined as "every promise or set of promises forming consideration for each other". In this case, it is a social agreement which does not create any legal obligation between them. Hence it is not enforceable in a court of law.
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If you are open to all these lessons, it can impart to you valuable bits of wisdom that will guide you along your path of life. Acceptance Acceptance is the act of embracingwhat life presents to you with a good attitude. Unfortunately, for many people, their body is the target for their harshest judgments and the barometer by which they measure their self-worth. They hold themselves up to an unattainable standard and berate themselves for failure of perfection. Imposingharsh judgments on your body limits the range of experiences you allow yourself to enjoy.
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Similarly, where two people make a contract by telephone and line goes dead so that the acceptance is incomplete then the acceptor must telephone the offeror to make sure that he has heard the acceptance. Otherwise, there is no contract. Situations which have no contract 1. Acceptance in Ignorance of the offer An offer is effective when it is communicated to the offeree. This requirement generally does not give rise to the problems, but difficulty does arise in the following type of case.
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The car was then sold to Dexter for �2500 adding that Monte did not keep his promise, but Monte was not bound by his promise. This is well supported by Tweedle v Atkinson1, Guy and Tweedle both agreed that they would each give some money to Tweedle's son who was going to get married to Guys Daughter. When Guy passed away without paying, William sued for the money, his claim had failed, as William himself had given nothing for Guy's promise.
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The impact of exclusion clauses on the consumer of goods and services in England and Wales is no longer of any significance. Critically analyse the statutory controls that exist over the use of exclusion clauses and assess the truth of this statement.
The Unfair Contract Terms Act 1977 has a significant effect on exclusion clauses. It imposes statutory limits on the avoidance of civil liability through exclusion clauses in business contracts. It only works when one of the parties were dealing as a consumer and another is not. It is interpreted widely, including businesses which are dealing as consumers. l However, the control may not extend to exclusion clauses that are not incorporated into the contract. In the case of R & B Custom Brokers case, the defendants was a shipping company who had purchased zlsome cars, which was merely incidental to their business and not integral to it.
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They are thus giventoo much discretion and this may potentially be unjust to parties who has really mean the terms to be construed as condtions.zl In the case of Hong Kong Fir Shipping vKawasaki, Here the claimants have chartered a ship for 2 years. Due to faulty engines and inadequate staff, 20 weeks of the charter has been lost to carry out repairs.
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Offers last forever unless expressly revoked. Critically evaluate this statement as it relates to the formation of contracts.
First and foremost, an offer will lapse once the offeror withdraw an offer which is known as revocation of an offer. In the case, Payne v Cave, it establishes the principle that an offer may be withdrawn at any time up until it is accepted. In Routledge v Grant, the defendant made a provisional offer to buy the claimant?s house at a specified price, ?a definite answer to be given within six weeks from date?. It was held that, regardless of this provision, the defendant still had the right to withdraw the offer at any moment before acceptance, even though the time limit had not expired.
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Misrepresentation Case. After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant.
After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant. The sound quality was poor and even at full volume it could not be heard over the voices of her customers. To make matters worse, the system was very complicated to operate. Advise Bianca whether she has any contractual rights and remedies for misrepresentation. This question is concerned with misrepresentation. A misrepresentation is defined as a false statement of fact that induces another party into entering a contract. This question requires advice to be given to Bianca as to whether she has any contractual rights and remedies for misrepresentation.
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Erik leaks the report to the Morning Star, which duly publishes it. Sven also informs Matius, over a drink in the pub that shares in Bell Enterprises Ltd are bound to prove a sound investment. Erik, Matius and Annika, a reader of the Morning Star, purchase shares in Bell Enterprise Ltd and lose a substantial sum of money when the shares in the company drop in value. Advise Sven as to his potential liability. 1. Negligent misstatement - (when a duty of care is imposed upon a defendant for negligent words which cause loss to the claimant)
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Contract Law Legal Briefing on Lucy v. Zehmer Supreme Court of Appeals of Virginia (196. Va. 493, 84 S.E.2d 516 (1954)
While having drinks, Lucy persuaded Zehmer to write up a contract for the sale of Ferguson Farm to Lucy for $50,000. Zehmer wrote up a contract for thus sale of land to Lucy for $50,000 complete. Lucy brought suit for specific performance when Zehmer refused to complete the transaction. The trial court ruled for Zehmer holding that Lucy had not established a right to specific performance.
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The Legal Principle of Frustration has been limited by the Courts. Explain why and how this has been done
There are three main types of frustrating events; the first Impossibility is where the event makes performance impossible. This may happen due to the destruction of the subject matter or if it is otherwise unavailable as in Taylor v Caldwell in 1863. But it must been held or intended by both sides to be the subject matter. The second Illegality is where the performance of the contract becomes illegal to do due to either the outbreak of war or the change of a law. An example would be Avery v Bowden in 1855 when a war broke out and Russia became the enemy, trading with them would be illegal.
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Offers may be withdrawn at any time up until acceptance Discuss the extent to which you agree with this statement and analyse the rules which determine the validity of the withdrawal of an offer.
An offer can be accepted or even rejected. In addition to that, it can also be revoked at any time up until acceptance. This is also known as revocation of an offer. This principle was laid down in an old case of Payne v Cave . Once an offer has been accepted by an offeree, a binding contract is formed and the offer ends ultimately. Nevertheless, there are a number of rules apply in relation with the withdrawal of an offer. If an offeror withdraws from an offer but fail to communicate his withdrawal to the offeree, the offer is still considered as valid.
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Law of Contract. With reference to case law, identify and discuss whether the common law rules relating to acceptance of offers provide certainty for businesses.
Firstly, the offeree must flower the offer as contracted and not trying to introduce new term. Secondly, the acceptance must subject to contract. Finally, acceptance must be communicated. So in my opinion, if the offer Accords with the rules above, the common law rules which relating to acceptance of offers can provide certainty for businesses. (Adams, 2012) In a unilateral offer, the acceptance relies on the obligation of offeror. For example, if a store offers a discount, only the store is obligated. No one has promised to take the store up on the offer, but if someone does, the store is responsible to give the discount.
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