rebuttable. Is it a formal or informal contract? Formal deed = enforceable contract Informal Is there consideration? No unenforceable contract Yes see below Offer must be satisfied 1. Sufficiently complete 2. Promissory (Harvey v Facey) 3. Intention to result in a contract if accepted (Partidge v Crittenden and PSGB v Boots Cash Chemist (Southern) Ltd) 4. Addressed to a person/identified group (Carlill v Carbolic Smoke Ball Co) 5. Has the offered expired‚ been withdrawn or
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offeror had the purpose to be bound. This is seen in Harvey v Facey [1893] UKPC 1. The outcome of this case resulted in “The Privy Council held that there was no contract concluded between the parties. Facey had not directly answered the first question as to whether they would sell and the lowest price stated was merely responding to a request for information not an offer. There was thus no evidence of an intention that the telegram sent by Facey was to be an offer.”[3] It is important to separate
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28/11/2013 Contents Elements of a Contract There are different elements of a contract that you must take into account when entering one. The following will give an understanding of these and explain their importance. Capacity There are four essential elements that affect contract law. The first of these is capacity. This element states that parties in agreement with a contract must have the legal capacity to enter into that contract. There are factors that affect the capacity
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An acceptance is an agreement to be bound to the terms of an offer. The fax by Tallula is actually an offer to buy the cookers at $100 (see Harvey v Facey ). Italian Cuisine’s response to the Tallula Investments’ fax ’receiving attention’ is not an acceptance to the offer. An acceptance must be clear and unqualified to be binding. It can be argued that Italian Cuisine is actually ’silent’ on the
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References: Adams v Lindsell (1818) 106 ER 250 Carlill v Carbolic Smoke Ball Co. (1983) 1 QB 256 Cohen v Cohen (1929) 42 CLR 91 Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd (1915) AC 847 Felthouse v Bindley (1862) 142 ER 1037 Harvey v Facey (1893) AC 552 Partridge v Crittenden (1968) 2 AII ER 421 R v Clarke (1927) 40 CLR 227 Roscola v Thomas (1842) 3 QB 234
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under Section 4(1) of the Contracts Act 1950‚ it is said that the completion of the communication of an offer occurs only after it comes to the knowledge of the offeree. An example regarding the issue of an offer can be found in the case of Harvey v. Facey [1893] UKPC 1‚ [1893] AC 552. Acceptance With the willingness of one party to make an offer‚
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Below is a model answer based on the previous categories. The green highlighted text shows how the law has been applied to the facts. The yellow highlighted text shows relevant case citations. The case study deals tih a simple contract‚ which is not required to be in writing. The elements of a simple contract are: Intention to create legal relations Offer and acceptance (an agreement) Consideration Capacity of the parties Certainty of terms Legality of object
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formed as HE ltd posted an offer to sell 10 laptops to GCS‚ keeping the offer open until the 24th September. A statement is made by HE ltd who is giving information to GCS expressing an intention to sell something in the future. For example‚ in Harvey v Facey‚ there was an offer agreeing to buy the pen for £900. This was because information was requested and sent. However‚ there was no acceptance. Similarly‚ GCS has just received information‚ but have yet not agreed to accept the offer. Furthermore
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A contract can be defined as an agreement containing promises made between two or more parties with the intention of creating certain legal rights and obligations and enforceable in a court of law (Gibson & Fraser‚ 2012‚ Business Law‚ p303). A contract must be satisfied certain legal requirements which are agreements‚ intention to create legal relations‚ considerations and capacity. Agreement = Offer + Acceptance Therefore‚ here apply the rule
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distinguished‚ from the following: (i) A mere statement of intention Such a statement cannot form the basis of a contract even although the party to whom it was made acts on it (Re Fickus (1900)). (ii) A mere supply of information As in Harvey v Facey (1893) where it was held that the defendant’s telegram‚ in which he stated a minimum price he would accept for property‚ was simply a statement of information‚ and was not an offer capable of being accepted by the plaintiff. Invitation to treat
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