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Key Concepts and Case Law in Contract Formation

Cheat sheet Requirements for a contract Bilateral offer - Formed by an exchange of promises by two parties Meaning of an offer - A promise or indication by a party that he/she is prepared to enter a contact with another party, on certain terms Spencer v Harding [1870] LR 5 CP 561 - The use of the word 'offer' does not necessarily mean a contractual offer has been made, they were simply requesting for tenders, nothing more. Gibson V Manchester city council - it was just a invitation to treat, Mr Gibson was just the one making the offer and the council did not accept because of the political change Storer V Manchester City Council - the document was deemed to be an offer an acceptance. Fisher v Bell [1961] - By picking up the item you are the one making the offer and therefore the display in the shop windows was an invitation treat. Pharmaceutical Society of GB v Boots Cash Chemists (1953) - The C of A held that the sale was made at the cashier's desk where a pharmacist is present. The customer made the offer at the till and the cashier could accept or reject it. The display at the shelves was an invitation to treat. Partridge v Crittenden [1968] - Limited Stock Argument tt he did not manufacture birds, so he could have a limited amount so if a 100 people replied to only 50 birds. It was an invitation to trade he just wanted to see who was interested ( persuasive authority) Lefkowitz v Great Minneapolis Surplus Stores [1957] tt 3 fur coats $1 each , frst come frst served." should be interpreted as an offer because it has 'frst come frst served' so the limited stock argument does not apply to this advert. Barry v Davies (Heathcote Ball & Co) (2001) - Highest bid was £200 for each item. @ because it was advertised without reserve it wasn't an offer Carlill v Carbolic Smoke Ball Co [1893] - It was an offer to the world, so complete performance of the offer was deemed acceptable and she could claim the £1,000. Acceptance Hyde v Wrench (1840) - Held -Plaintiff's offer of £900 was not an acceptance. It was a counter-offer (just like Gibson V Manchester City Council) and his fnal communication was not an acceptance of the original offer but a further offer to buy at £1,000, which the defendant was at liberty to accept or reject. Stevenson, Jaques & Co v McLean (1880) 5 QBD 346 - request information, the acceptance was valid. The inquiry sought to clarify the position as to delivery of the iron. It was not a counter-offer - it did not alter or change the contract Butler Machine Tool co Ltd v Ex-Cell-O Corporation (England) Ltd [1979] 1 All ER 965 - The C of A held in favour of the buyer, stating that the acknowledgement slip was a counter-offer, which was accepted by the seller, and the seller's