Contract Formation Case Law and Theories

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France: Lemonade Bottle Case
The display of goods is a binding offer.
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England: Pharmaceutical Society v Boots
The display of goods is an 'invitation to treat'.
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Netherlands: Hofland v Hennis
Advertisement is generally a binding offer. Except for 'intuitu personae' contracts - when special attributes of the buyer are important to the seller.
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France: Maltzkorn v Braquet
Advertisement is generally a binding offer.
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England: Partridge v Crittenden
Advertisement is an 'invitation to treat'.
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England: Offord v Davies
An offeror is free to withdraw from an offer at any time before acceptance.
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England: Hyde v Wrench
The lapse of an offer occurs when the offer is rejected or there is a counter offer.
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Civil Law: Receipt Theory
The contract is concluded once acceptance reaches the offeror.
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England: Brinkibon Ltd v Stahag Stahl GmbH
Instantaneous Communication: Acceptance takes effect when it comes to the attention of the offeror.
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Common Law: Dispatch Theory (Mailbox/Postal Rule)
Non-instantaneous Communication: Acceptance takes place when the offeree posts the acceptance.
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Adams v Lindsell
Dispatch Theory
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Household Fire & Carriage Accident Insurance Co Ltd v Grant
Dispatch Theory
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Holwell Securities Ltd v Hughes
Dispatch theory should not always be applied.
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England: Felthouse v Bindley
Silence/inactivity does not amount to acceptance.
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Subjective Approach to Intention
Focuses on what the party's actual intention was when concluding the contract.
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Objective Approach to Intention
Focuses on if a 'reasonable person would infer intention from the statements and conduct of a party.
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England: Smith v Hughes
An objective approach to establishing intention.
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Germany: K Speditions - Gesellschaft
An objective approach to establishing intention.
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England: Balfour v Balfour
Presumption that domestic agreements are not legally binding unless indicated.
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England: Merritt v Merritt
Presumption of domestic agreements not being legally binding is not applied if they are no longer in an amicable relationship.
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England: Cheshire, Fifoot & Furmston
'To offer a friend a meal is not to invite litigation.'
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England: Currie v Misa
Valuable consideration is a right, benefit, interest, or profit to one party or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other party.
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England: Peppercorn Theory/Rule
Even a peppercorn can be considered good consideration.
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England: Chappelll and Co v Nestle Ltd
Value of consideration does not need to be adequate (equivalent), but sufficient, in the eyes of the law.
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England: Stilk v Myrick
Pre-existing contractual duty is invalid consideration.
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Williams v Roffey Bros
Marks a shift away from the bargain view of contracts to the view based on the intentions of the parties. Consideration must still exist, but they must be ready to try to find its existence to reflect the intentions of the parties when bargaining powers a
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Central London Property Trust Ltd v High Trees House Ltd
The doctrine of promissory estoppel can enforce a promise that lacks consideration if requirements are met.
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Other cards in this set

Card 2

Front

The display of goods is an 'invitation to treat'.

Back

England: Pharmaceutical Society v Boots

Card 3

Front

Advertisement is generally a binding offer. Except for 'intuitu personae' contracts - when special attributes of the buyer are important to the seller.

Back

Preview of the back of card 3

Card 4

Front

Advertisement is generally a binding offer.

Back

Preview of the back of card 4

Card 5

Front

Advertisement is an 'invitation to treat'.

Back

Preview of the back of card 5
View more cards

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