Lecture 1
Elements of a contract
Elements of a Contract:
1. Intention
2. Consideration
3. Written (sometimes)
4. Formation
5. Agreement
6. Mistake – one party messes up terms of contract, other party has knowledge
of this contract invalid
Agreement:
Minds of the parties come together – each agrees to either do/not do something
(consensus between parties)
2 Main parts of a contract:
1. Offer
2. Acceptance
Note: Contract does not need to be in writing to be valid in the UK (verbal/oral
agreements are valid)
Examples of objective evidence needed to determine the existence of a contract:
- Language and conduct showing immediate readiness to be bound (obligation)
– test for offer
- Language and conduct showing immediate readiness to be bound – test for
acceptance [“let u know” = invalid]
- Lang and conduct inconsistent -> up to the judges to determine if there is a
contract or not (form a judgement) [usually say no immediate readiness as a
default]
Example case 1: Harvey v Facey
Principle from the case: Asking the price of an item is not offer to buy
Harvey asked Face if he would sell a particular item, and what the lowest list price
was. To this question, Facey replied that the lowest price was 900. Harvey then
Elements of a contract
Elements of a Contract:
1. Intention
2. Consideration
3. Written (sometimes)
4. Formation
5. Agreement
6. Mistake – one party messes up terms of contract, other party has knowledge
of this contract invalid
Agreement:
Minds of the parties come together – each agrees to either do/not do something
(consensus between parties)
2 Main parts of a contract:
1. Offer
2. Acceptance
Note: Contract does not need to be in writing to be valid in the UK (verbal/oral
agreements are valid)
Examples of objective evidence needed to determine the existence of a contract:
- Language and conduct showing immediate readiness to be bound (obligation)
– test for offer
- Language and conduct showing immediate readiness to be bound – test for
acceptance [“let u know” = invalid]
- Lang and conduct inconsistent -> up to the judges to determine if there is a
contract or not (form a judgement) [usually say no immediate readiness as a
default]
Example case 1: Harvey v Facey
Principle from the case: Asking the price of an item is not offer to buy
Harvey asked Face if he would sell a particular item, and what the lowest list price
was. To this question, Facey replied that the lowest price was 900. Harvey then
