1. Contract Law
by Charlotte Richardson

2. A contract can be defined as an
agreement between two parties that is
enforceable by law

3. Agreement
(Offer + Acceptance)
Intention to be
Consideration
legally Bound

4. Offer + Acceptance = Agreement

5. To have an agreement, you must first have a valid offer.
An offer can be made in writing, verbally or by conduct
The rules of an offer are as follows
 The offer must be communicated by the offeror
(which is the person making the offer) to the offeree
(which is the person receiving the offer)
Taylor v Laird [1856] 25 LJ EX 329
 An offer can be withdrawn before acceptance
Routledge v Grant [1828] 4 Bing 653
 An offer can be made to the whole world
Carlill v Carbolic Smoke Ball co [1893] 1 QB 256
The terms of the offer must be certain
 Guthing v Lynn [1831] 2 B & AD 232

6.  Goods displayed in a shop window
Fisher v Bell [1961] 1 QB 394
 Advertisements in Newspapers or a magazine
are also invitations to treat, there is no
contract in place until one party makes the
offer to buy, which then needs to be
accepted.
Partridge V Crittenden [1968] 1 WLR
1204
 Goods displayed on a shelf
Pharmaceutical Society of GB V Boots
Cash Chemist Ltd [1953] 1 ALL ER 482
 Mere statement of price

7.  Advertisements which state a promise such of that
in:
Carlill V Carbolic Smoke Ball LTD [1893] 1 QB
256
This is not an invitation to treat because of the
promise stated on the poster. The promise forms
the offer.

8.  An offer can be accepted verbally, in writing or by
conduct
 Acceptance must be the mirror image of the offer.
Hyde V Wrench[1840] 49 ER 132
 Acceptance must be communicated
Powell V Lee [1908] 99 LT 284
 Silence is not considered acceptance
Felthouse V Bindley [1863] 142 ER 1037

9. Acceptance has taken place one the letter has
been posted
Adams V Lindsall [1818] 106 ER 250
 Even if the letter is lost or destroyed
 Household Fire Insurance Co V Grant [1879]

10. Consideration is defined as the price of which the promise of
the other is bought
 Consideration doesn't have to be adequate
Thomas V Thomas[1842] 2 QB 851
But it must be real and have actual value
Chappell & Co Ltd V Nestle & Co Ltd [1960] AC 87
 Consideration may be executionary but not past
Roscorla v Thomas [1842]

11. Two presumptions
 Social and Domestic Arrangements
 Commercial Arrangements

12.  Usually not legally binding
Balfour v Balfour [1919] 2 KB 571
Unless the couple are estranged
Merritt V Merritt [1970] 1 WLR 1211

13.  Usually legally binding
Edward V Skyways Ltd [1969] 1 WR 349
Unless
The intention not to be legally bound is made in
agreement
Jones V Vernon Pools Ltd [1938] 2 ALL ER 626

14.  Bob, who is a butcher has put a poster up in
his shop window
 We need to work out if this is an offer? Or an
invitation to treat?
 Is there a contract –Is there a offer and
acceptance? Is there consideration and is
there intention to create legal relations.

15.  If the poster had stated a unilateral promise as that in
Carlill V Carbolic Smoke Ball LTD [1893] 1 QB 256
 Bobs poster would be a valid offer, which the customer could
accept
 BUT the acceptance doesn’t mirror the offer
 Therefore, there is no contract in place – so the customer
can’t sue Bob for breach of contract

16.  If this was a Social or domestic agreement it is
presumed not to be legally bound – there for No
contract
Lens v Devonshire Club (1914)
 But commercial arrangements are presumed to be
legally binding, so Bob would be liable for breach of
contract.
 Peter would be able to claim reliance loss for the work
Bob did not complete
 Anglia Television Ltd v Reed [1972] 1 QB 60