Burrows Chapter 1 What is a contract? - 'A contract is a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognises as a duty' - Bilateral and unilateral contract - Simple contract: contracts made in writing or orally, which are valid because of the agreement and the consideration. Requires the presence of consideration - something must be given in exchange for a promise - Contracts made formally by deed: that promises contained in a deed are contractually binding irrespective of agreement or consideration. It derives its validity from the form in which it is expressed. Such a promise can bind the promiser even before it is communicated to the promisee and hence without any agreement between the parties Offer and Acceptance Two General Illustrative Cases Harvey v Facey [1893] AC 552, Privy Council - It was held by the Privy Council that there was no contract for the sale of Bumper Hall Pen because Facey's telegram was not an offer to sell. It was merely an invitation to treat. - The 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. Gibson v Manchester City Council [1979] 1 WLR 294, House of Lords - Approach used "look at the correspondence as a whole and at the conduct of the parties and see therefrom whether the parties have come to an agreement on everything that was material" - Conventional approach: Upon the true construction of the documents relied upon as constituting the contract, there never was an offer by the corporation acceptance of which by Mr. Gibson was capable in law of constituting a legally enforceable contract. It was but a step in the negotiations for a contract which, owing to the change in the political complexion of the council, never reached fruition. - Not an offer to sell capable of acceptance so as to constitute a contract 'May be prepared to sell the house to you". Language does not permit such a construction. Display of Goods for Sale Fisher v Bell [1961] 1 QB 394, Divisional Court of the Queen's Bench
- The sole question is whether the exhibition of the flick knife in the window with the ticket constituted an offer for sale within section 1(1) of the Restriction of Offensive Weapons Act 1959 - According to the ordinary law of contract the display of an article with a price on it in a shop window is merely an invitation to treat. - No offence was committed here. Act prohibit selling and offering for sale of goods by inserting words "offering or exposing for sale". However, this was a mere invitation to treat and not an offer for sale Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401, Court of Appeal - Question was whether the defendants contravened s18(1)