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Contract Formation Case Studies
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Errington v Errington and Woods (1952)
Reinforced that a unilateral contract becomes irrevocable once the party has commenced performance of the act.
Balfour v Balfour (1919)
Established the principle that not all agreements between parties, especially within a domestic context, are contracts.
Blue v Ashley (2017)
Highlighted that informal discussions, especially in a social context, cannot be assumed to be binding contractual agreements.
Thomas v Thomas (1842)
Outlined that consideration must be sufficient but need not be adequate, exemplified by the token payment of £1 per annum for a property.
Carlill's case (1893) revisited
Contributed to the understanding of consideration in unilateral contracts where general performance of an action can be sufficient.
L'Estrange v Graucob (1934)
Highlighted the significance of signing a contract, whereby a party is bound even if they have not read the terms.
Entores Ltd v Miles Far East Corporation (1955)
Modified the postal rule for instantaneous communications, establishing that acceptance must be received by the offeror.
McArdle v McArdle (1951)
Clarified that consideration must not be past; therefore, a promise made for actions already completed does not constitute valid consideration.
Harvey v Facey (1893)
Determined that a statement of the lowest price at which the seller would sell was not an offer but merely an indication of the price.
Storer v Manchester City Council (1974)
Contrasted with Gibson v Manchester City Council, showing that where necessary documentation is completed and sent, an agreement can be formed.
Hyde v Wrench (1840)
Demonstrated that once an offer is rejected, it cannot be accepted later; a counteroffer constitutes a rejection of the original offer.
Pharmaceutical Society of Great Britain v Boots Cash Chemists (1953)
Clarified that goods displayed with a price in a self-service store constitute an invitation to treat, not an offer. The offer is made when the customer brings the goods to the cash desk.
Adams v Lindsell (1818)
Established the 'postal rule', where acceptance is deemed to have occurred when the letter of acceptance is posted, not when it is received by the offeror.
Smith v Hughes (1871)
Explored the objective test of agreement in contract law, emphasizing the importance of what is perceived by a reasonable person as intentions to enter an agreement, rather than private intentions.
Rose & Frank Co v JR Crompton & Bros Ltd (1925)
The case established the concept of 'honour clauses', which can indicate an agreement is not legally enforceable as a contract.
Williams v Roffey Bros & Nicholls (Contractors) Ltd (1991)
Introduced the concept that providing additional consideration can make a contract modification binding even without new consideration from the other party, if it avoids a detriment to the modifying party.
Merritt v Merritt (1970)
Contrasted Balfour v Balfour by enforcing an agreement between estranged spouses. Courts are more willing to find contracts in post separation agreements.
Chappell & Co Ltd v Nestle Co Ltd (1960)
Established that even something with no intrinsic value could constitute valid consideration if it is of some value to the other party.
Peppercorn case: Thomas v Thomas (1842) revisited
Illustrated the concept of a 'Peppercorn rent', where a nominal consideration is deemed sufficient to support a contract.
Fisher v Bell (1961)
Reiterated that displaying an item in a shop window is an invitation to treat and not an offer to sell, following the principles of contract formation.
Gibson v Manchester City Council (1979)
Demonstrated that an intention to agree in the future does not amount to a current agreement to contract.
Currie v Misa (1875)
Defined consideration in a contract as a right, interest, profit, benefit, or forbearance, detriment, loss, responsibility.
Partridge v Crittenden (1968)
Held that an advertisement in a newspaper for the sale of goods was an invitation to treat, not an offer.
Felthouse v Bindley (1862)
Confirmed that silence cannot amount to acceptance. An uncle's assumption of purchase did not constitute a contract without explicit agreement by the nephew.
Carlill v Carbolic Smoke Ball Co. (1893)
Established that a unilateral offer can be accepted by performing the act. The company's advertisement was an offer, and purchasing/using the smoke ball was acceptance.
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