Intention – SOCIAL OR DOMESTIC- do not intend to create legal relations. Balfour v Balfour (1912)
Categories of rebuttal – The nature of the document (if drafted by solicitor)
- Agreement may expressly state legal relations
- Surrounding Circumstance may indicate intention Merritt v Merritt (1970)
-Significant reliance on promise- consequences are sufficiently serious. Wakeling v Ripley (1951) - COMMERCIAL NATURE- do intend to create legal relations. Edwards v Skyways (1964)
Rebutted- Rose & Frank Co v JR Crompton & Bros Ltd (1925)
Letters of Comfort- State of current intentions for the future. Provide Comfort, not assurance. (Kleinwort Benson Ltd v Malaysia Mining Corporation Berhad [1981]
Agreement- has been a valid offer and that it has been accepted. Manifestation by 2 or more persons to the substance of the contract. Would a reasonable person think an agreement had been entered. Can be shown by conduct. Does not have to be express words “I accept your offer”
Offer:
1. Offers must be distinguished from an invitation to treat or request for information. – Intention to make offer- Carlill v Carbolic Smoke Balls Co. (1893) * Display of goods- Invitation to Treat. Pharmaceutical Society v Boots Cash Chemists. * Request for info does not create offer- Harvey v Facey [1893] 2. Offers must be communicated to the person or persons for whom it was intended. 3. Offer can be made to particular person, persons or whole world. – smoke balls case. 4. Offers may terminate- Revocation- Dickinson v Dodds Revocation must be communicated. * Rejection: Offeree says no. * Counter-offer: offeree makes counter offer. Rejects original offer. Hyde v Wrench [1840] * Lapse of Time- specified time, or reasonable lapse. Ramsgate Victoria Hotel Co Ltd v Montefiore [1866] * Lapse by Death- Carter v Hyde * Lapse by Failure of Condition: condition must happen before agreement becomes contract.
Acceptance: