Law Paper
Contract: a legally enforceable agreement General Rule (GR) for an agreement to be legally enforceable, following requirements must be satisfied: 1. There is an agreement between the parties (2 or more persons) 2. The parties intended to create legal relations 3. Each party has provided consideration, that is, paid a price or made a promise GR for an agreement to be formed: 1. One person (the offeror) has made an offer 2. Another person (the offeree) has accepted the offer 3. The offeree has communicated their acceptance to the offeror Offer: an expression of willingness to enter into an enforceable r/s with the person to whom the offer is directed Offer v Request for information: Distinction rests on offeror’s intention to be bound immediately in contract e.g. Harvey v Facey mere statement of the lowest price at which the vendor would sell contains no implied contract to sell at that price to the persons making the inquiry. Offers v Invitations to Treat (An invitation to negotiate or make an offer) e.g. 1. Price lists and catalogues 2. Invitation to submit a tender 3. USUALLY advertisement except reward cases Exceptions to the GR: e.g. Carlill v Carbolic Smokeball Company (1892) Court dec it was MORE than a mere invitation to treat and it was a legal offer to the world because the wording of the ad made it clear that CSBC was willing to enter into legal relations with anyone who accepted the offer of the reward. 4. Display of goods e.g. Pharmaceutical Society of Greate Britain v Boots Cash Chemist ltd (1953) sale takes place at the cashier under the supervision of the pharmacist Offer GR: 1. Offer must be communicated to be effective. 2. Offer can be withdrawn or revoked anytime prior to acceptance unless offeree has paid the offeror to keep the offer open e.g. option contract: Goldsborough Mort & Co Ltd v Quinn (1910) Court dec cos GMC had paid Quinn to keep his offer open for one week Quinn so was not permitted to withdraw the offer,