• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13

I have been asked to advise a client on considering contracting with a building company to build new head offices in the area. I will explain the rules of offer and acceptance. Rules of intention, legal capacity, specific contract terms, standard form con

Extracts from this document...


Common Law Assignment 1 I have been asked to advise a client on considering contracting with a building company to build new head offices in the area. I will explain the rules of offer and acceptance. Rules of intention, legal capacity, specific contract terms, standard form contracts and exemption clauses. Offer An offer is a definite promise to be bound on specific terms. (BPP Common Law 1994) The offer has to be specific in order to actually constitute an offer. For example in the case of Gunthing V Lynn 1831 the facts of the case were the offeror to pay a further sum for a horse if it was 'lucky'. The offer was too vague so the judge said it was not specific enough to constitute an offer. It could constitute an offer if the offeror said that he/she would buy the horse if it wins the 2.30pm race at Oxford. Invitation to treat An invitation to treat is an indication that someone is prepared to receive offers with the view to forming a binding contract. It is not an offer in itself. (BPP Common Law 1994) There are four types of an invitation to treat. 1. Auction sales At an auction the bid itself is an offer and then the auctioneer can either accept or reject the offer. A good example of this is the case of Payne and Cave 1789, the defendant made the highest bid for the plaintiff's goods at an auction sale, but he withdrew his bid before the fall of the auctioneer's hammer. It was held that the defendant was not bound to purchase the goods. His bid amounted to an offer which he was entitled to withdraw at any time before the auctioneer signified acceptance by knocking down the hammer. 2. Advertisements This is an attempt to induce offers and is therefore classified as an invitation to treat. ...read more.


The House of Lords held that it was an implied term of a lease of a maisonette in a Council block that the landlord should take reasonable care to keep the common parts of the block in a reasonable state of repair. The term was clearly not implied in fact: the "officious bystander" test was not satisfied; nor was the implication necessary to `give business efficacy to the contract. The implication arose because the nature of the relationship made it desirable to place some obligation on the landlord as to the maintenance of the common parts of the premises. It amounted to the imposition of a legal duty, in spite of the fact that no term could be implied in fact. However, on the facts there had been no breach of the obligation. (Taken from (Taken from www.lawteacher.net/Contract/Contents/termscases.htm Accessed on 17 November 2005) Innominate Terms In this case the remedy available will depend on the seriousness of the breach, if the breach is so serious that it goes to the root of the contract then the innocent party will be entitled to repudiate the contract and claim for damages. This was demonstrated in the case of Cehave NV v Bremer Handelsgesellschaft mbH (The Hansa Nord) 1975 where the buyers of citrus pulp pellets rejected the goods because they were in a damaged condition and later bought them at a cheaper price and used them for the same purpose. It was held to be a wrongful rejection of the goods as there was not a serious breach of contract and that the buyers were only entitled to damages. (Taken from homepages.unl.ac.uk/~bamfordj/lecture5.htm accessed on 17 November 2005) In theses type of cases the courts could delay deciding whether an event is a breach of condition or warranty until the extent of the damage is known. Intention, Capacity and Form Intention Intention has to be implicity, which means you do not have to say it but you imply it, for example saying to somebody something, does that does not form a contract. ...read more.


in the case of a contract for sale by sample, which would have been apparent on a reasonable examination of the sample. (3) Where the seller sells goods in the course of a business and the buyer, expressly or by implication, makes known - (a) to the seller ... any particular purpose for which the goods are being bought, there is an implied term that the goods supplied under the contract are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the buyer does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the seller ... The terms implied by sections 14(2) and (3) are conditions: s14 (6) Sale by sample Section 15 provides: (2) In the case of a contract for sale by sample there is an implied term - (a) that the bulk will correspond with the sample in quality; (c) that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample. The term implied by s15 (2) is a condition: s15 (3). Modification of remedies for breach of condition in non-consumer cases Section 15A provides: (1) Where in the case of a contract of sale - (a) the buyer would, apart from this subsection, have the right to reject goods by reason of a breach on the part of the seller of a term implied by sections 13, 14 or 15 above, but (b) the breach is so slight that it would be unreasonable for him to reject them, then, if the buyer does not deal as a consumer, the breach is not to be treated as a breach of condition but may be treated as a breach of warranty. (2) This section applies unless a contrary intention appears in, or is to be implied from, the contract. (3) It is for the seller to show that a breach fell within subsection (1) (b) above. Taken from slcc.strath.ac.uk/scotslawcourse/contract/con2/Statutes/ucta1977. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    "The requirement of consideration is an unnecessary complication in the formation of contracts."

    4 star(s)

    Act 1999, English law now confers on third parties a much wider right to enforce a term of a contract which has been concluded between two other parties. In this sense, the rule that consideration must move from the promise has not been reformed, but the substance of the matter

  2. Marked by a teacher

    Using relevant case law explain why the distinction between an invitation to treat and ...

    3 star(s)

    The Court of Appeal held that the display of the knife in the window was an invitation to treat rather than an offer for sale therefore no offence was committed. One type of offer is- Bilateral offer. This is an agreement by an exchange of promises between two parties- Thornton v Shoe Lane parking Ltd [1971] 2 QB 16.

  1. Definitions of Actus reus, mens rea & strict liability

    Fagan v MPC, and Mens Rea is present at some point during its commission. * The second way is a chain or series of events as in the case of Thabo Meli v R. Transferred Malice Mens Rea can be transferred from an intended victim to an unintended one as

  2. Four ways in which a contract may be discharged.

    The doctor advised that continuing to perform was likely to cause a major breakdown. (d) The non-occurrence of a particular event which forms the basis of the contract. Krell v Henry [1903] 2 KB 740. The defendant contracted to hire a flat for 26th and 27th June 1902 (Kings Coronation).

  1. Exclusion clause

    breach of s.12 - 15 of the Sale of Goods Act 1979) cannot be excluded unless the clause satisfies the test of reasonableness. The requirement of reasonableness laid down in s.11 (1) is that the exclusion clause shall have been fair & reasonable 'having regard to the circumstances which were

  2. Generally, silence of the offeree does not constitute an acceptance of the offer. ...

    It was obvious that the nephew had accepted and communicated to the auctioneer by telling him that the horse had been sold, even though he had not communicated the acceptance to his uncle.

  1. Contract Law - offer and acceptance.

    The plaintiff's offered $2175000 for them while the other party offered to pay $2100000 or if that was not the highest tender then $10100 in excess of any other bid. The House of Lords ruled that the other party's second bid was invalid, and that the defendants undertaking, meant their

  2. Evaluate the law of formation of contract in the context of modern methods of ...

    The objective test could result in unfairness as in Felthouse v Bindley (1863); the offeror and the offeree both wished for there to be a contract and there was independence evidence to confirm this. The offeree had contacted the auctioneer holding the horse to remove the horse to remove the horse from the auction.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work