6 essential elements that are required by the common law of a contract
Offer
Acceptance
Consideration
Intention to create legal reactions
Capacity
Certainty and completeness
What is the Traditional model of contract
Traditional rules of contract law suggest there is a ‘magical moment of formation. This view assumes both autonomous parties negotiate on equal terms until they strike a bargain and conclude an agreement.
What is the alternative (global) view of contract formation
All relevant events would need to be taken into account when forming a contract, rather than the act of an offer and a response of acceptance.
Important case for a global approach to contract law
Gibson v Manchester City
Definition of offer
An offer sets out the terms of a bargain. However, the distinction between an offer and an invitation is not always clear.
What does the offer and acceptance signal
Offer and acceptance signal that there is agreement and that a mutual binding obligation has been formed.
What are the conditions of an offer
An offer can be made expressly or implied in conduct, but it must be intended to be converted into a legally binding contract. Both the offeror and the offeree must have legal representation.
What is an invitation to treat?
An invitation to treat is a more formal approach to others that instigates the dealing process. It might ultimately lead to an offer of acceptance, but it is not an offer itself.
What is the conditions for an invitation to treat
The terminology used by the offeror,
Any limitation imposed on who can accept,
Any limitation imposed on what is being offered
What can you do if an offer is ambiguous
In terms of the putative offer being ambiguous, then if you can look at the agreement between the parties, to can remove the ambiguity.
What is mere puffery
Mere puffery are statements that induce a contract but do not of itself constitute a binding offer. These statements are so far-fetched that no reasonable person would believe them.
What are the 2 types of contracts
Unilateral and bilateral contracts
What is a unilateral contract
A unilateral contract is one that the offeree accepts by performing their side of the bargain.
What is a bilateral contract
At the time of formation, the obligations of neither party had been performed. The obligations of both parties are executory at this point.
What makes a bilateral contract different from a unilateral contract
A bilateral contract is formed by the mutual exchange of promises.
What type of term is shop sales?
Invitation to treat
Auctions definition
An auction will usually be characterised as an invitation to treat. In an auction, the auctioneer invites offers and can accept a bid. The auctioneer is facilitating offers from the people who are present at the auction.
Tenders definition
A tender offer is a public bid for stockholders to sell their stock. Initially, an invitation to tender is an invitation to treat; however, the terms of the tender process can form a binding contract.
Ticket cases
A series of cases that stand for the proposition that if you are handed a ticket or another document with terms, and you retain the ticket or document, then you are bound by those terms.
What have the courts decided in ticket cases
The issuing of a ticket is the offer, and the passenger can choose to accept or reject. If the passenger accepts, they are presenting for travel.
When can an offer be terminated
An offer can be terminated at any time before it is accepted.
What is the exception to the termination of offers
The exception is if the offeree has paid to keep the offer open by option
What is a counteroffer
A counteroffer is where the offeree does not accept the offeror’s original terms but still wants to contract, but on different terms than the original offer.
Reasons an offer may be terminated
The offeree makes a counteroffer
The offer has lapsed
A condition precedent was not fulfilled
