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Contract Law

For a contract to be lawful, the following must be established: An agreement: an agreement is the first requirement for the legitimacy of a contract. An agreement has to consist of an offer and acceptance. It has the consensus ad idem.

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Timothy Ugwu
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328 views3 pages

Contract Law

For a contract to be lawful, the following must be established: An agreement: an agreement is the first requirement for the legitimacy of a contract. An agreement has to consist of an offer and acceptance. It has the consensus ad idem.

Uploaded by

Timothy Ugwu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as ODT, PDF, TXT or read online on Scribd
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For a contract to be lawful, the following must be established:

An agreement: an agreement is the first requirement for the legitimacy


of a contract. An agreement has to consist of an offer and acceptance. It
has the consensus ad idem.
Consideration: this is the thing given by a party to a contract in
exchange for what the other party gives. It is a proof of bargain.it is also
called the quid pro quo.
Intention: a contract should show that both parties had the intention to
be lawfully bound with the terms of the agreement they have reached.
Turner (2010).
However in the cause of this presentation, there are certain terms that
require definition.
Invitation to treat: according to Turner (2012) an invitation to treat is
when a party invites another to make an offer to buy that is different from
the original offer.
Promissory estoppel: this means that the claimant has depended on
the defendants promise and it is unfair for the defendant to go back on it.
Chen-Wishart (2012).

Scenario 1:
To be able to establish a contract, there must be an offer. One must
clearly state the difference between an invitation to treat and an offer.
An example of invitation to treat can be seen in this leading case.
Pharmaceutical Society of Great Britain v. Boots [1953] 1 QB 401.

Macmillan and Stone (2012) given the principal from Canadian Dyers
Association Ltd. V. Burton [1920] 47 O.L.R 259 (H.C) and also Harvey v.
Facey [1893] AC 552 an ordinary quotation of price does not make up an
offer to sell to the person to whom the quotation is addressed. It is no
more than an invitation to treat. An advertisement is merely an invitation
to treat according to the precedent from Partridge v Crittenden (1968) 2
All ER 425. Therefore there was not an offer and there was no contract
formed.
Scenario 2:
To establish if there was a contract there must be an agreement. An
agreement consists of an offer and acceptance. For Bob to have started
work, it meant that there was a clear acceptance through the conduct
because the offer was a clear and plain promise Woodhouse A.C Israel
Cocoa Ltd v. Nigerian Product Marketing Co ltd [1972] A.C 741.
However, the contract became discharged in performance because
payment was after completion. Thus, the general rule of no completion;
no payment established from Cutter v. Powell (1795) EWHC KB J13 is
applicable. Since the contract was discharged through performance it is
seen as promissory estoppel. Thus, there is a contact even without a
consideration.

Bibliography

Ben-ishai, S. and Percy, R. (2009) Cases and commentaries. 8th edition.


Toronto: Carswell.
Chen-Wishart, M. (2012) Contract Law. 4th edition. Oxford: Oxford
University Press.
http://www.e-lawresources.co.uk/Offer-and-acceptance.php

(no

date)

(accessed 8th December 2013).


http://www.e-lawresources.co.uk/Promissory-estoppel.php (no date)
(accessed 7th December 2013).
McMillian, C. and Stone, R. (2012) elements of the law of contract.
London: university of London.
Turner, C. (2010) Unlocking Contract Law. 3rd edition. Italy: Hodder
Education.

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