Contract Law Analysing Contracts agreement · consensus ad idem - meeting of minds · all contracts are agreements but not all agreements are contracts · contractual agreements usually requires a party to do something in return for another party agreeing to do something, and vice versa · the law could not agree all agreements between parties 1. the agreement was in a deed form (prime facie evidence) (formal requirements) 2. consideration objective test/ approach · was it agreed . is there a meeting of minds · is what was said/written the same as what was meant o problems with oral contracts, it is not as easy to prove what was said or intended Tamplin v James [1880] 15 ChD 215 Defendant attended an auction to buy an inn which was put on sale as 'Lot 1'. The auctioneer explained the particulars of sale and the plan, which showed the extent of the property. 'Lot 1' was not sold at the auction eventually. Immediately after the auction, the defendant made an offer for the property, which was accepted. Later, it turned out that the defendant made the offer under the mistaken belief that 'Lot 1' included two adjacent plots of land. Defendant then refused to go ahead with the contract. - The court held that the defendant was bound by his contract to buy 'Lot 1', and he was not entitled to the adjacent plots. . there was offer and acceptance and therefore they were bound by contract . the defendant was under a subjective belief that the plot would come with the adjacent plots · courts held that the objective view should prevail as it was explained to the claimant what was the perimeters of the lot · VTB Capital Plc v Nutritek Int'l Corpn [2013] UKSC 5, per Lord Neuberger- "Objectivity is one of the most fundamental principles on which contractual liabilities and rights are based." · Emphasis is placed on the outward impression and not on the subjective meaning. what the reasonable person would have concluded from the facts and events · o should the reasonable person be in the shoes of the observing party? or should it be the view of the detached reasonable person? o the ‘peculiar knowledge' problem " the reasonable person will not possess the knowledge/rational which was used to come to the subjective conclusion objectivity
· promisee objectivity (recipient) - the reasonable person stands in the shoes of the promisee and views the events from that perspective · promisor objectivity - stand in the shoes of the promisor (giver) · detached objectivity - the reasonable person is from a neutral position and view the events from there (a fly on the wall) Upton-on-Severn Rural District Council v Powell [1942] 1 All ER220 · D calls for fire assistance and it is sent . Powell was under the impression that he did not have to pay for the service . he lived outside the council boundaries and therefore he would have to be charged