Contract I (Formation & Terms) - Notes

Contract I (Formation & Terms) - Notes - Contract I...

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1 Contract I What is a contract? Definition of a contract: “an agreement giving rise to obligations which are enforced or recognized by law” A voluntary agreement between two or more parties The law exists to govern and regulate the parties’ relationship in such agreements Can be verbal or written, simple or complicated Regulation of Contracts Formation of contracts Elements required for a contract to exist Contents ( terms ) of a contract Performance of terms of the contract by its parties Remedies when there is non-fulfillment of either party’s obligations ( breach )
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2 Formation of Contract What are the necessary elements? OFFER Indication by offeror of willingness to contract ACCEPTANCE Absolute and unqualified – must be communicated to offeror CONSIDERATION Usually indicated by price or the carrying out of an act in return for the benefit INTENTION TO CREATE LEGAL RELATIONS Would an objective person conclude from the parties’ conduct that they did intend to contract? CAPACITY Parties must have the capability of entering into a contract Elements of an Offer Person making offer called the ‘offeror’ (and it can be a definite person, or to a definite class of persons or to the world at large Carlill v Carbolic Smoke Ball Co [1892] 2 QB 484 Must be ready, willing and able to carry out his offer - Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 Distinguish from an invitation to treat – Fisher v Bell (1960) 3 All ER 731 Termination of an Offer An offer terminates in 3 ways: Revocation – by the offeror (must be communicated) Byrne v Van Tienhoven (1880) 5 CPD 344 – however need not be communicated by the offer himself – Dickinson v Dodds (1876) 2 Ch. D 463 Rejection – by the offeree A counter-offer by the offeree – Hyde v Wrench (1840) 3 Beav 334 Lapse (time, death of offeror or upon a specified condition) - reasonable time Ramsgate Victoria Hotel Co v Montefiore (1866) LR 1 ex. 109
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3 Elements of Acceptance Offeror must know of acceptance General rule silence is not acceptance – ( Midlink Development Pte Ltd v The Stansfield Group Pte Ltd [2004] 4 SLR 258) But open to offeror to waive need to communicate acceptance If not, will constitute a counter-offer – Hyde v Wrench (1840) 3 Beav 334 Offeror may prescribe mode of communication Exception to the communication rule: the postal rule – Adam v Lindsell Elements of Consideration Some attempts at defining consideration: “A valuable consideration in the sense of the law may consist in either some right, interest, profit or benefit occurring to the one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by another” Curries v Misa (1875) LR 10 Ex 15 (case valued only for the definition)
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This note was uploaded on 11/19/2011 for the course MEDIA LAW Medlaw taught by Professor Professorwong during the Spring '08 term at Ngee Ann Polytechnic.

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Contract I (Formation & Terms) - Notes - Contract I...

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