Certainty

Question 1

What must term be? What case?

Answer 1

• Terms need to be reasonably clear G Scammell & Nephew Ltd v Ouston.
• Courts want to understand terms and will be hard to argue a case is uncertain especially if performance has commenced

Question 2

What implied term is there regarding price? Two acts?

Answer 2

• Buyer must pay a reasonable price if price not fixed Sale of Goods Act.
• Implied term that the party contracting with the supplier will pay a reasonable charge for services. Supply of Goods and Services Act

Question 3

What is an agreement to negotiate in good faith/ is it enforceable? What two cases?

Answer 3

• An agreement to negotiate in good faith means two parties truly wish to come to an agreement.
• Courts will not enforce ‘bare’ agreement to negotiate (one made out of an existing contractual relationship) Walford v Miles. A clause in an existing contract may be enforceable.