Week_2-6_-_Contract

Week_2-6_-_Contract - Week 2 6 Contract Law Chapter 4:...

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Week 2 – 6 – Contract Law Chapter 4: Making the Contract – Offer and acceptance What is a contract? - An agreement between two or more persons which will be enforced by a court of law. It may be: o Entirely in writing o Entirely oral o Partly written and partly oral - To ascertain whether a contract actually exists, the law requires the plaintiff to establish the following essential elements: - Has the offer been made? Offers need to be distinguished from invitations to treat - Has the offer been accepted? Acceptance is only valid when it is properly communicated - Did the parties intend to make a contract? The parties to the agreement must have intended for their agreement to be legally enforceable. - Was consideration provided? The courts will only enforce an agreement if both sides have provided something of value = CONTRACT Does a contract have to be in writing? - NO! (with a few notable exceptions) - The major advantage however with an oral contract over a written contract is one of proof. It is obviously easier to prove what the contract says. Intention - Ascertaining the intention of the, or one of the parties is required. Intention is capable of two constructions: o To ascertain subjective intention is to examine a person’s state of mind o To ascertain objective intention is to ignore the person’s state of mind and to look purely at what that person said and did . - On the basis of what a person said and did, it is possible to conclude that any reasonable person saying and doing the same things, within the same context must have had a particular intention. – The reasonable person test. * The courts are mainly concerned with what the parties must have meant as opposed to what the parties actually meant. Remedies: - Termination of the contract - Damages - Specific performance - Injunction - Recovery of the contract price - Agreed damages clauses.
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Offer Makes offer to Meaning: - Legal meaning: ‘ the indication by one person to another of his willingness to enter into a contract with him on certain terms o An offer exists only where a reasonable person would conclude on the facts that the person was willing to be bound in a court of law. **Case: Harvey v Facey - Harvey requested lowest price that Facey would sell the property bumper hall pen at. Facey responded with: ‘lowest price ₤900’. Harvey took this as an offer and accepted. Facey refused to proceed with the sale and as a result, Harvey sued for breach of contract, in that Facey’s relpy constituted an offer in which he (Harvey) accepted. - Decision: The privy council rejected this argument, as Facey was merely supplying information as requested. There was no intention to make an offer. The only offer made was the one made by Harvey. -
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Week_2-6_-_Contract - Week 2 6 Contract Law Chapter 4:...

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