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University Degree: Contract Law
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- Marked by Teachers essays 4
They are:- Whether the notice and clause are incorporated into the contract? Whether UCTA and UTCCR applies? Whether Robert can claim damages on his broken arm and Rolex watch? Whether Lucy can claim damages on the stolen coat? 3.0 Application 3.1 Methods of incorporation An exclusion clause is a term of the contract which attempts to exclude or restrict one's liability which he would otherwise owe to the other. In Henderson v Stephenson1, the court held that the absence of a notice on the front of the ticket referring to clauses on its rear rendered the clauses invalid.
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The final issue that needs to be considered is whether the offer once made can be withdrawn or revoked. The general rule is that the offer can be revoked up until the time it is accepted. The offer was announced in the Sunday sentinel and then cancelled the following day. Bel did not post her entry until Tuesday which meant that the newspaper had already revoked the offer before she had accepted it. However since Bel missed the cancellation of the offer in the Monday edition of the newspaper it can be argued that she had accepted the offer before she was made aware of the cancellation.
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Explain in the light of decided cases how the Courts understand the terms offer and acceptance in the formation of contracts.
This case has shown where an offer is in the form of a promise for an act. Since the advertisement has contained an offer of unilateral contract, the acceptance of the offer does not need to be communicated to the offeeror. Furthermore, the defendants intends to give promise to customers of the reward by stating the amount of deposit they have put in bank, the judge interpret it as an actual promise rather than a mere sales puff. An offer is different from an invitation to treat, it carries an element risk since once the offer is being made and accepted by the other party, it will be illegal for the offeror to break the contract.
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Contract Law Case. Dipikas advertisement can be seen as an offer because she had stated specific terms in the offer with the television and her address and phone number. An offer is a definite promise to be bound provided certain specific terms a
Offer and acceptance is when one party makes an offer and the other party accepts it. Consideration is when both parties exchange something of value so the contract can be valid. Intention is when both parties intend to create a legal relationship of that agreement. The facts of the question indicate that it is a unilateral contract. A unilateral contract is where one party promises to do something in return for an act of the other party. If an offeree has accepted a unilateral offer and has begun completing the act but not yet finished it, revocation of that offer will not be effective.
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Contract Law problem cases. Kamil want to sell his laptop with his friend Sam. Sam agrees to buy the laptop at the price of $500, and pays Kamil. Kamil later discovers the laptop could have been sold at a higher price
Ciro and V. Goldwasser, 2006, p.86) Verbal agreements do not form a contract to some extent. In this case , they have agreement ,but the Kamil is a minor and sound equipment is not necessaries for him ,so there is no contract . Argument From the point of the view of Mamil Mcelroy, he is a minor and promised to purchase Michael's Kenwood Excelon DNX9140 sound equipment. Besides, they make a deal that Kamil will pay for the equipment in three instalments.
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Exemption clauses are an agreement in a contract which helps the party to have limited or to exclude liability. It can be used unfairly which makes it a disadvantage to other partys which is why there are laws in place to limit the use of clauses and to m
All clauses need to satisfy the Unfair Contra Terms Act (1977) and pass the test of reasonableness There are three types of incorporation of clauses one being by signature other being by notice and finally incorporation by a consistent and frequent course of dealings. In this case clause has been incorporated as a term in the contract using consistent and frequent course of dealings. For the term to be incorporated the party in this case, Greased Lightning need to give reasonable time to Mr.
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If a price has been agreed, Patrick is bound by the signed contract.7 Under the parol evidence rule8, the court will assume that the written agreement contains all the terms of the contract. Unless Patrick can prove that the contract was partly oral and partly written, or that there was a collateral contract where the consideration for entering into the contract was the promise about the quality of the mare9, he will not be able to sue for breach of contract (assuming the written contract says nothing about age and breeding).
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Thus when Flywell Ltd created the new entity, Jetover Ltd, they could each contract with employees and run their business independently. There is a difference between a legal entity and an economic entity - Lord Justice Robert Goff emphasised that "we are concerned not with economics but with law".3 It would be impossible, under company law, to argue that the redundancy and new contract are invalid unless the Association could convince the court to pierce the corporate veil. Jetover is a properly constituted legal entity, not a sham, even if the dealings involving the pilots are.
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In some cases terms can even be implied by custom, trade usage or common business practice. General Overview: Implied Terms Different scholars divide implied terms in different ways. However the general accepted criteria is the following: 1. Terms implied by custom 2. Terms implied by courts a. As a matter of fact b. As a matter of law 3. Terms implied by statutes Terms implied by Custom: When parties enter into a contract in a particular line of business, it is often acceptable for them not to incorporate each and every term in the contract. This is done because there are certain terms which are established by custom in the trade.
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If contracting parties actually create their own bargains, then how can the various instances of judicial and statutory interference with contractual terms be justified?
The role of the courts is merely to act as an arbiter, giving effect to the parties' agreements. An example of the approach taken by Will theorist in interpreting contracts can be found in Chappell & Co. v Nestle Co. Ltd1, where the court adhered to the rule that consideration must be adequate but need not be sufficient. It was established that it was for the parties to determine the value of consideration and the role of the court was merely to assess whether or not consideration was present and not to investigate the adequacy of consideration. This approach is an example of the principle that the parties create the contract and it is not for the courts to interfere with contractual terms.
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All relationships between individuals and companies are governed by the rules of precedent and statutory interpretation. However, these rules only appear to impose constraints on what judges may do. The truth is that judges can alwa
An example of this is Hewlett-Packard b) Identify and explain the legislative basis for each of these legal forms; Limited Liability. A limited Liability company must have at least one director, one company secretary (whose responsibility it is to submit the accounts) and one shareholder. The company can have a maximum of 50 shareholders. The profits are taxed via Corporation tax and they have to submit and prepare Profit and Loss accounts + balance sheets to Companies House (an agency of the government). Partnership A partnership can have up to 20 partners at one time.
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Offers can be made to individuals or to groups of people. As shown in the case Carbolic Smoke Ball3 an advertisement was an offer to ''the whole world'. Similarly, Lisa's advert was not a direct offer to any particular individual but to everyone. Moreover, two further requirements of a contract need to be recognized - the intention of the parties to create legal rights and consideration. As Lord Devlin stated in Parker v Clark4: ''The question (whether or not there is a binding contract)
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Promissory estoppel is a necessary supplement to the doctrine of consideration, because it enables courts to enforce promises that have been relied upon even though the promise was not part of an exchange. Discuss.
Contrary to its supplementary nature, instances like these exemplify how estoppel can possibly contradict the doctrine of consideration altogether. Furthermore, the refined approach towards consideration pioneered by Williams v Roffey Bros & Nicholls (Contractors) Ltd2 has stifled the role of promissory estoppel, resulting in it being increasingly unnecessary contemporarily. A leading case illustrating how promissory estoppel is supplementary to consideration by equitably enforcing promises relied upon that was not part of the exchange is Hughes v Metropolitan Railway Co3. In Hughes, the House of Lords held that the tenant was entitled to equitable relief by promissory estoppel, against forfeiture of the lease on the ground that the running of the six-month period was suspended during the negotiations to purchase the lease and did not recommence until the negotiations broke down.
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What are the purposes of the rules about offer and acceptance with regard to the formation of contracts?
These rules, developed through the common law, are used to confirm, on the facts, whether an agreement has been reached between two parties, and therefore whether a contract exists between them. When a dispute arises, the court must first look at the correspondence between the parties which constitute as an offer and an acceptance. The courts use the 'mirror image rule'3 to ensure there is a clear, unequivocal offer and a clear, unequivocal acceptance, therefore the offeree accepts all the terms of the offer - any offer in return amending the initial terms negates the original offer.
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Do the courts always rigorously apply the established rules of offer and acceptance governing the formation of contracts?
Lord Diplock in the House of Lords stated that, although there may be certain 'exceptional' cases which do not 'fit easily into the normal analysis of a contract as being constituted by offer and acceptance', these cases were very much the exception and they have not displaced the traditional rule. In the case of Butler Machine Tool Co Ltd v Ex-Cell-O Corporation Ltd, Lord Denning overall agreed with the decision of the majority, who held that the buyers' order could not be construed as an acceptance of the sellers' offer because it did not mirror exactly the terms of the sellers' offer and therefore amounted to a counter-offer.
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It has been said that a promise is enforceable once consideration has been provided. Discuss whether this statement is too simplistic as a description of the principle of consideration.
The parties, and not the doctrine of consideration, are in general the arbiters of what constitutes a good or bad bargain. However, it dose not follow from the fact that the doctrine of consideration is not interested in the fairness of the bargain that the law of contract is simply disinterested. It is the parties or it is the courts who whether or not consideration is sufficient. It is useful to distinguish the case where the alleged consideration takes the form of a promise to pay money for a service or a product from the case where the promise takes the form of a promise to provide non-monetary benefits 3.
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Read the case of Baird Textile Holdings Ltd v. Marks & Spencer plc.  EWCA Civ 274. In your own words describe the concerns about awarding relief under Contract Law with which the justices are grappling. Explain why the court could not establish a co
Finally the twenty ninth June 2000 Lord Justice Morison dismissed the case on the basis that it was not a contract nut advised both parties to continue for a trial under the estoppel basis. M&S retired chairman and chief executive Sir Richard Greenbury who joined in the year 1953,in his witness statement dated 11 April 2000 mentioned that M&S had good relationships with all its suppliers, also we had another principal witness from M&S who is the director of Procurement who mentioned that "M&S was developed by a principle of partnership" but not in the legal sense ,it was more in the spirit in co operation.
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The notice stated that "No liability is accepted for any damage, howsoever caused, to vehicles left in this car park". Advise Denise and Cerise. 'A clause in a contract or a term in a notice which appears to exclude or limit a liability or a legal duty which would otherwise arise.' Such a clause/ term is known as an exemption clause and a distinction can be drawn between exclusion clauses and limitation clauses. Exclusion clauses seek to limit all liability for certain breeches and are common in standard form contracts.
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Justifying freedom of will. If contracting parties actually create their own bargains, then how can the various instances of judicial and statutory interference with contractual terms be justified?
The passing of UCTA has imposed three obligations on parties regardless of what the parties has bargained for. Firstly, the exclusion of liability for negligence. Secondly, which is the general control of exclusion clauses and thirdly, control over certain specific contract terms. Section 2(1) of UCTA was enacted to exclude exemption of liability for death or personal injury and s.2(2) subjects the party's clause to a reasonable test. In such instances, UCTA protects the rights of the parties if death or personal injury are involved regardless of what the parties have contracted for in their bargains. In determining reasonableness, the guidelines are given in the 2nd Schedule of the UCTA.
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Furthermore, Rebecca's promise of �300 occurs two months later, after Steve has already created the report. Generally, past consideration is no consideration for a new promise: Eastwood v Kenyon3. Steve's actions could therefore be viewed as gratuitous as his actions were not given in exchange for Rebecca's promise. However, a past act may be considered as good consideration for a subsequent promise if three particular conditions are met. In the Pao On v Lau Yin Long decision, Lord Scarman explained: "The act must have been done at the promisor's request...the parties must have understood that the act was to be
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Contract Law and case study - In this case scenario the representative of house warm LTD Visits A and offers A the Offeree a loft installation
In most cases an offer will be made to a specified person however offers can be addressed to a group or even to the general public for example in reference to case Caril v Carbolic smoke ball co ( 1893) the defendants were the manufactures of smoke balls which they claimed could prevent flu. They published advertisements stating that if any body used the smoke balls for a specified time and still caught flu, they would pay that person �100, and that to prove they were serious about the claim, they had deposited �1000 with their bankers.
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Whilst Mega Ltd had accepted the reduced price there may be a problem with the issue of consideration for the modification. For consideration to exist the rules followed must be complied with. There must be a legal or practical benefit to the promisor or a detriment to the promise, it must be sufficient but need not de adequate, past consideration is not good consideration, consideration must move from the promisee and the performance of an existing obligation cannot be consideration for a fresh promise.
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A contract has been arisen in between both parties about Antonio offering a television and satellite connection on a specific weekend to Ben. As this event did not occur as per the contract, the contractual obligation has been breached and Antonio has bre
Antonio has offered to provide a wide screen television with satellite link up for Ben on Saturday in his pub so that his customers can watch a game. Ben gives his acceptance by payment of �500 thus creates an obligation on the part of Antonio to provide his entertainment at the pub at a specific time stated in the contract made. This particular non-compliance of Antonio has caused a valid reason for Ben to terminate the contract. It is now clearly established that Antonio has breached the contract and Ben whereby becomes entitled to claim for damages.
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The rules for these elements and their exceptions evolved in case law. Offer and acceptance create a 'concurrence of will' or a 'meeting of the minds', offer and acceptance act as the evidence that there is mutual consent (wikipedia, Contract). "An offer is a definite promise to be bound on specific terms" (42). The reason this element is required is to ensure that the two parties of the contract acknowledge that one made an offer and one accepted it with those terms. It also makes sure that the offeror has intentionally made an offer.
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