Australian Business Law Summary

6492 Words Sep 14th, 2011 26 Pages
Topic 3: Contract Law

*What is a contract? a legally enforceable agreement; that is, an agreement enforceable in a court
*Types of contracts
Number of parties: * Unilateral – one party (eg reward case) * Bilateral – two parties, both with mutual obligations * Multilateral – more than two parties, all with obligat0ions
* Simple Contracts: written; oral; part-written & part-oral * Need all elements of a contract , including consideration * If all elements present, enforceable unless written contract required and not present * Formal Contracts (normally ‘Deeds’): satisfy formality requirements (eg written, signed, sealed & delivered) * No need for ‘consideration’ (that is, mutual
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emists (Southern)Ltd display of items on shelves = invitation to treat, because cashier always there & could stop sale
Fisher v Bell: window display = invitation to treat
BUT sometimes ads can be offers: Carlill v Carbolic Smoke Ball Co * a supply of information: Harvey v Facey * Mere puffery

*Other circumstances
-Vending machine = offer, accepted by insertion of payment
-TENDERS: call for tenders = usually invitation to treat; Tender bid = usually an offer
-AUCTIONS: Auctioneer’s call for bids = invitation to treat; Bid at auction = offer
*Offer to the world at large: Any statement intended to be an offer to anyone reading it, can be an offer to ‘to the world at large’
Carlill v Carbolic Smoke Ball Co

*Other matters regarding offers
-Offer is only effective once communicated(until it was received)
-Language need not be important, eg the word ‘offers’ will not necessarily be offers
-If advertisement limits possible number of persons able to accept ‘offer’ then can be an offer
-If rain checks are offered if supply runs out, can demonstrate intention to make binding offer to world at large, not merely invitation to treat

*Possible responses to an offer:
-Reject it terminates it (ends offer permanently)
-Make counter-offer terminates original offer (Hyde v Wrench)
-Ask for more information or clarification before making a final decision whether to accept (Stevenson, Jaques & Co v McLean) =>no effect on offer but offer will lapse

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