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Introduction to English Law
Lecture 7: Contract Law
11 th^ December 2008
Dr. Ian Curry-Sumner
UCERF, School of Law, Utrecht University 2
Elements of a Contract
- Formation
- Contents of the contract
- Factors that vitiate a contract
- Discharge of a contract
- Remedies for breach
- Rights and liabilities of third parties
Section 1
Formation of a Contract
4
Formation of a Contract – Intro (1)
Offer Acceptance
Consideration
Intent to create
legal relations
Counter offer, rejection …
Section 2
Offer
6
7
Elements – Offer (1)
Carlill v. Carbloic Smoke Ball (1893) An offer is an expression of a willingness to contract on certain terms made with the intention that a binding agreement will exist once the offer is accepted 8
Elements – Offer (2)
Problem cases A. Offer v. Invitation to Treat Advertisements and other notices Need to distinguish unilateral offer from advertisement. Harris v. Nickerson (1873) Auctioneer advertised that certain goods would be sold at a certain location on a certain date. P turned up but the lots he required had been removed. 9
Elements – Offer (3)
Displays of goods for sale Does the display of goods in a window amount to an offer? Fisher v. Bell (1961) Flick-knife in window. Seller prosecuted under Restriction of Offensive Weapons Act 1961. Pharmaceutical Society of GB v. Boots (1953) Goods on shelf. Needed to place in basket and at desk, supervised by registered pharmacist. 10
Elements – Offer (4)
Ticket cases Chapelton v. Barry UDC (1940) Sign by some deck-chairs for hire constituted a offer, which the Ps^ had accepted when he took two of the deck-chairs. The tickets were mere receipts. How are timetables and passenger tickets considered? Cokcerton v. Aznar SA (1960) Tickets have been held to be contractual documents on the basis that the proffering of the ticket by a bus conductor is an offer which is accepted by taking the ticket. 11
Elements – Offer (5)
Tickets (Problem cases) Wilkie v. London Passenger Transport Board (1947) Timetable amounts to an offer which is accepted by the passenger when applying for ticket or boarding the bus. Still undecided! B. Offer v. Request for Information Harvey v. Facey (1893) Will you sell us Bumper Hall Pen? Telegraph lowest cash price. This was just a request for information.
Section 3
Acceptance
Section 4
Consideration
20
Elements – Consideration (1)
Comparison Romanist countries Doctrine of causa English law Doctrine of consideration Germanic countries (and NL since 1992) Neither doctrine Can be compared because requirement above and beyond intention 21
Elements – Consideration (2)
Introduction Promises are only enforceable where indication that intend to be bound Can be in the form of: Form , e.g. a deed Reciprocity , e.g. consideration Reliance , e.g. promissory estoppel 22
Elements – Consideration (3)
Solution Idea that the promisee should not be able to enforce a promise unless he has given something in return. Classic definition: Principles 1.Consideration may not be past 2.Consideration must move from promisee, but not necessarily to promisor 3.Consideration must be sufficient, though not necessarily adequate Currie v. Misa (1875) Either some right, interest, profit or benefit to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other. 23
Elements – Consideration (4)
Consideration Defined Benefit to the promisor (person benefiting from promise) Detriment to the promisee (person making the promise) Conditions : I will give you £500 if you break your leg You can have my flat if you move in and look after it Gifts : If you buy 4 gallons of petrol, you will receive a World Cup coin 24
Elements – Consideration (5)
Principle 1: Executed/Executory but not past Past consideration by promisee is no consideration Exceptions Lampleigh v. Braithwait (1615) B had killed another and asked Lampleigh to secure a pardon. L went to considerable effort and expense. B subsequently promised to pay £100. B then failed to pay. Pau On v. Lau Long (1980) Lord Scarman Conditions: (a) act must be done at the promissor’s request (b) parties understood that the act was to be paid (c) payment enforceable if had been promised in advance
25
Elements – Consideration (6)
Principle 2: From Promisee, but not to promsior Promisor Promisee Makes promise Person to whom promise made Tweedle v. Atkinson (1861) Ps^ father and Ps^ future father-in-law agreed to pay £100 and £ respectively upon Ps^ marriage. Ps^ future father-in-law died before paid. Price v. Easton (1833) A promised B that if B did certain work for him, A, would pay money to C. B did the work, but failed to pay C. 26
Elements – Consideration (7)
Principle 3: Sufficient, not necessarily adequate Chappell v. Nestlé (1960) Wrappers of chocolate bars held to be sufficient consideration for the sale of the record. Bainbridge v. Firmstone (1838) At the request of F, B allowed him to weigh two boilers provided he returned them in as good a condition as they were lent. F dismantled the boilers to weigh them and returned them in this state. Detriment is that didn’t have boilers in possession for a period of time.
