Contract Formation in Scots Law Week 1
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What is typically necessary for the conclusion of a contract?

  • Agreement on the time of delivery
  • Agreement on the nature, subject, and price (correct)
  • Agreement on the payment method
  • Agreement on the location of the contract
  • In the context of contractual obligations, who is referred to as the pursuer?

  • The party raising an action (correct)
  • The party providing consideration
  • The party that agrees to the terms
  • The party receiving payment
  • What is the primary basis for negotiating with the other party in a contractual dispute?

  • The emotional response of the parties
  • The mutual understanding of terms
  • The infallibility of the contract
  • The possibility of legal action (correct)
  • What was Frederic's response to Adham's initial offer for the bike?

    <p>He countered with a higher price</p> Signup and view all the answers

    Which scenario demonstrated a lack of consensus or agreement in a contract?

    <p>Adham posting money for the bike without confirmation</p> Signup and view all the answers

    How is consensus viewed in the context of contracts?

    <p>Objectively, based on observable agreements</p> Signup and view all the answers

    In the case of Muirhead and Turnbull v Dickson, what was under dispute?

    <p>Whether it was a sale or hire purchase agreement</p> Signup and view all the answers

    What is the role of the defender in a contractual dispute?

    <p>The party being accused in a lawsuit</p> Signup and view all the answers

    What occurs after an invitation to treat is accepted?

    <p>An offer is made following the invitation to treat.</p> Signup and view all the answers

    In the context of Carlill v Carbolic Smokeball Co, what was the nature of the advertisement?

    <p>A binding offer available for acceptance.</p> Signup and view all the answers

    What is the effect of a counter-offer?

    <p>It kills the original offer.</p> Signup and view all the answers

    When does an offer typically lapse?

    <p>Upon the passage of a reasonable period of time.</p> Signup and view all the answers

    Which of the following accurately describes acceptance?

    <p>Acceptance may be express or implied.</p> Signup and view all the answers

    What stipulation can an offeror make regarding acceptance?

    <p>The mode of acceptance may be stipulated.</p> Signup and view all the answers

    What determines whether a statement can be considered an offer?

    <p>The clarity of the terms indicating intent to be bound</p> Signup and view all the answers

    In the case of Boots’ self-service system, when was the contract formed?

    <p>At the checkout when the pharmacist supervises the sale.</p> Signup and view all the answers

    What can be said about the nature of advertisements in general?

    <p>They are generally regarded as invitations to treat.</p> Signup and view all the answers

    In the case of Mathieson Gee (Ayrshire) LTD v Quigley, what was the result regarding the existence of a contract?

    <p>There was no contract because acceptance was not clear</p> Signup and view all the answers

    Which of the following statements is classified as an invitation to treat?

    <p>Goods displayed with a price attached</p> Signup and view all the answers

    According to the legal definitions provided, who is referred to as the offeror?

    <p>The party that makes the offer</p> Signup and view all the answers

    Which case emphasizes the principle that an accepted offer creates a contract?

    <p>Viscount Stair, Institutions</p> Signup and view all the answers

    What is the primary distinction between an offer and an invitation to treat?

    <p>An offer aims to create a binding contract, while an invitation to treat does not</p> Signup and view all the answers

    What essential element was lacking in the agreement between MG and Q that resulted in no contract?

    <p>Clear acceptance of the offer</p> Signup and view all the answers

    Which statement correctly identifies what constitutes a legal offer?

    <p>It must have terms indicating the intent to be bound</p> Signup and view all the answers

    What is required for a promise to be considered a unilateral obligation?

    <p>It must be made in writing and signed, unless in business.</p> Signup and view all the answers

    Which case demonstrates that an oral promise made in a commercial setting can be relied upon?

    <p>Carlyle v RBS</p> Signup and view all the answers

    According to Stair, what happens to a promise if the recipient does not accept it?

    <p>It becomes void only by a contrary rejection.</p> Signup and view all the answers

    What must a promise demonstrate to be enforceable according to the principles of promise?

    <p>There must be serious intention to be bound.</p> Signup and view all the answers

    What condition can a promise be subject to?

    <p>It may be subject to a condition, but needs no acceptance.</p> Signup and view all the answers

    What is the general rule regarding the communication of acceptance?

    <p>Acceptance is effective on receipt.</p> Signup and view all the answers

    Which of the following cases illustrates the Postal Acceptance Rule?

    <p>Thomson v James</p> Signup and view all the answers

    Under what condition can an acceptance be effectively withdrawn according to the given content?

    <p>If the withdrawal letter reaches the offeror before the acceptance letter.</p> Signup and view all the answers

    What is necessary for a contract to exist as per the details provided?

    <p>There must be actual communication of acceptance.</p> Signup and view all the answers

    In the context of an offer, which statement is true?

    <p>A withdrawal of an offer must be actually communicated to be effective.</p> Signup and view all the answers

    What distinguishes a contract from a promise?

    <p>A contract becomes binding only after communication.</p> Signup and view all the answers

    Which situation exemplifies a unilateral contract?

    <p>A person promises a reward for finding a missing dog.</p> Signup and view all the answers

    What should parties ideally specify to avoid confusion regarding acceptance?

    <p>There should be a clear indication of how acceptance can be communicated.</p> Signup and view all the answers

    Which of the following statements correctly reflects an enforceable contract?

    <p>A clearly defined contract with all necessary elements settled.</p> Signup and view all the answers

    What is an essential element that must be present for a contract to be enforceable?

    <p>Intention to create legal relations.</p> Signup and view all the answers

    In the context of contract law, what is meant by 'incomplete agreements'?

    <p>Contracts that leave essential terms open for interpretation.</p> Signup and view all the answers

    What illustrates a characteristic of conditional agreements in contract law?

    <p>An agreement contingent upon a specific future event.</p> Signup and view all the answers

    According to the legal principles laid out, which type of agreements are generally not enforceable?

    <p>Agreements to agree that lack definitive terms.</p> Signup and view all the answers

    Which of the following cases involved a term determined by arbitration?

    <p>Foley v Classique Coaches</p> Signup and view all the answers

    What is a significant factor in determining whether an agreement between parties is legally binding?

    <p>The intention of both parties to create legal obligations</p> Signup and view all the answers

    In which situation did the courts imply a term regarding reasonable payment due to dissensus on price?

    <p>Avintair v Ryder Airline Services Ltd</p> Signup and view all the answers

    What legal principle suggests that commercial agreements are enforceable as contracts?

    <p>Presumptions based on the context of the agreement</p> Signup and view all the answers

    Which case demonstrates that an agreement on price is not always an essential term for contract validity?

    <p>R&amp;J Dempster v Motherwell Bridge and Engineering Co Ltd</p> Signup and view all the answers

    Which statement best describes the case Balfour v Balfour?

    <p>It failed to establish a legal obligation.</p> Signup and view all the answers

    What distinguishes a suspensive obligation from a resolutive obligation?

    <p>A suspensive obligation is due on occurrence of an uncertain event.</p> Signup and view all the answers

    Under the Requirements of Writing (Scotland) Act 1995, which situation requires a written document?

    <p>The creation of a real right in land.</p> Signup and view all the answers

    Which of the following obligations can be classified as contingent?

    <p>Obligations based on a certain event.</p> Signup and view all the answers

    Which of the following describes the nature of commercial agreements based on Rose and Frank Co v JR Crompton & Bros Ltd?

    <p>They can be informal and non-binding.</p> Signup and view all the answers

    Study Notes

    Student Attendance System

    • System for on-campus attendance: Students open the app/calendar, find their beacon, click "Check-In" icon, wait for it to turn solid green
    • System for online attendance & engagement: Students open the app/calendar, click the Watch link, close the confirmation screen, view the lesson on their device
    • Online Introduction to Scientific Enterprise: The course is scheduled for Monday, September 6th at 10:00

    Contract Formation in Scots Law

    • Topic: Formation of a Contract/Incurring Contractual Obligations
    • Course: Private Law of Scotland I, LW11011, Week 1
    • Contract Disputes: Courts uphold rights and enforce duties. Possibility of legal action provides a basis for negotiation. Party raising action is the pursuer, other party is the defender.
    • Contract Conclusion: Sometimes the answer is obvious, sometimes arguable. Examples are included in the slides showing scenarios and questions for discussion to determine if a contract was reached.

    Elements of a Contract

    • Agreement/Consensus in Idem: Agreement on the nature of the contract, subject(s) of the contract, and the price/consideration
    • Objectivity of Consensus: Courts consider the outward appearance of agreement, not the parties' internal thoughts or intentions

    Cases and Examples

    • Muirhead & Turnbull v Dickson (1905): The court determined the contract was NOT for hire purchase, looking at what parties said, not what they thought they said. This case emphasizes objective interpretation of agreement.
    • Mathieson Gee v Quigley (1952): Examines whether a contract existed based on the parties' communications.
    • Hyde v Wrench (1840), Wolf & Wolf v Forfar Potato Co (1984): A counter-offer kills the original offer, making it no longer capable of acceptance. Passage of time and reasonable time for acceptance discussed.
    • Wylie & Lochead v McElroy & Sons (1873): Passage of reasonable time for acceptance discussed in the context of commodity price fluctuations.
    • Holwell Securities v Hughes (1974), Felthouse v Bindley (1862): Acceptance must be communicated. Silence does not constitute acceptance; the offeror can't stipulate acceptance by silence.
    • Shaw (2010): Consideration of circumstances where a party thought their communication constituted acceptance, and a contract was then judged to exist.

    Communication of Acceptance

    • General Rule: Acceptance is effective on receipt; it needs to be read, heard, or received.
    • Exception - Postal Acceptance Rule: If offer and acceptance are conducted by post, acceptance is deemed effective on posting The offeror cannot withdraw an offer once the letter of acceptance has been posted, but revocation needs to have been received to be effective. Once the acceptance has been posted, the contract is formed. -Important context: To avoid confusion, an offer may specify that acceptance must be communicated directly to avoid the postal rule.

    Revocation

    • A contract's offer can be withdrawn but needs to be effectively communicated before the acceptance. Putting the revocation in the post is not enough, it needs to be received.

    Offer vs Invitation to Treat

    • Offer: Statement with clear terms demonstrating intention to be bound upon acceptance.
    • Invitation to Treat: Not an offer; it's an invitation to make an offer. Common examples include shop displays, advertisements, price lists, and quotations.

    Cases Illustrating Offer/Invitations to Treat

    • Pharmaceutical Society of Great Britain v Boots (1953): A self-service store selling drugs; a pharmacist supervising transactions. Clarified the difference between an invitation to treat and an offer in retail settings.
    • Carlill v Carbolic Smoke Ball Co (1893): Company made a promise for a particular outcome to customers; viewed as a binding offer, not an invitation to treat.

    Contract vs Promise

    • Contract: Binding in law; includes a clear agreement, acceptance, and consideration. Key questions include if it's binding, if it needs writing, if it needs agreement and acceptance, and if its communication is required and how to revoke it.
    • Promise: Something that may not be legally binding. It highlights essential elements in determining if a promise is actionable in law. Examples are given in slide 25

    Further Study Points

    • Enforceability and formalities of contracts will be discussed following this material.

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    Description

    Explore the principles of contract formation and the obligations that arise within Scots law in this Week 1 quiz from the Private Law of Scotland course. Understand the roles of pursuer and defender in contractual disputes and engage with various scenarios to determine contract status. Test your knowledge on the legal foundations and practical implications of contract formation.

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