Contract Law Overview

The act of communicating acceptance of an offer must be done by the offeror or someone specifically authorized by them.

A unilateral offer can be accepted by completing the specified action, even without notifying the offeror beforehand.

When parties act in accordance with the terms of an agreement, even without expressly accepting it, a contract can be implied.

The intention to create legal relations refers to the parties' clear intention to create a legally binding agreement that can be enforced by the law.

Agreeing to a deal isn't enough; the parties must intend for their agreement to have legal consequences.

Courts evaluate the facts and behaviors of the parties to determine whether they intended to create a legally binding agreement.

An invitation to treat (ITT) is a communication that invites someone to make an offer, but doesn't bind the sender to accept any offer.

In an auction, the auctioneer's call for bids is an ITT, and bids from participants are offers. Only when the auctioneer accepts the highest bid by striking the hammer is a contract formed.

Inviting tenders is an ITT, seeking offers from interested parties. Submitting a tender is considered an offer, which the inviter can accept or reject.

Timetables and train/bus tickets are usually considered ITT's. They invite you to travel, but the provider isn't obligated to carry you.

An invitation to negotiate or bargain is a preliminary stage where parties discuss possible terms, without any binding intent.

An offer must be communicated to the offeree to be valid. If an offeror sends a proposal, but the offeree never receives it, no contract exists.

A promise made out of emotions or sentiment is not enough to create a legally binding agreement.

Consideration in a contract must have an economic or physical value that can be measured.

A promise not to pursue legal action against someone can be valid consideration if it's part of a bargain.

Agreeing to do something you are already legally obligated to do is not valid consideration for a new promise.

If the promisee goes beyond their legal duty or provides something extra, it might be considered valid consideration.

A witness promised payment for appearing in court is not enforceable because they're already legally obligated to appear.

Forbearance from enforcing a legal claim is valid consideration if it's requested and relied upon by the other party.

A debtor's promise to provide security as payment for a bank's forbearance from legal action is valid consideration.

Court-ordered compensation designed to make up for financial losses due to a broken contract.

Court-ordered actions to ensure fairness in situations where money alone can't fix the problem.

Monetary compensation awarded to the injured party to cover losses caused by breaking a contract.

Given when there's little to no actual loss from a breach.

Awarded for substantial financial or other losses resulting from a breach.

The injured party must prove that their loss was directly caused by the contract breach.

Only losses that were reasonably foreseeable at the time of the contract can be claimed.

The injured party has a duty to take steps to minimize further losses after a breach.

A preliminary action inviting others to make offers. It is not a binding contract itself.

Advertisements are usually ITT's, inviting responses and negotiations, not forming a binding contract directly.

Advertisements for specific goods at specific prices (e.g., catalogs, newspaper listings) are invitations to treat, not offers.

Advertisements specifying conditions for acceptance without further negotiation can be offers, not ITT's.

Displaying goods in shops is an ITT. The customer makes the offer to purchase when they take the item to the cashier, and the shopkeeper accepts it.

Price lists and catalogues circulated by sellers invite potential buyers to place orders, but don't obligate the seller to accept.

Pharmaceutical Society v. Boots (1952) ruled that goods on shelves are ITT's. Contract formed at cashier's approval.

Fisher v.Bell (1961) held that displaying items for sale is not a binding proposition. Displaying a flick knife was an ITT.

An acceptance that introduces new terms or conditions to an offer, effectively becoming a counter-offer.

A counter-offer terminates the original offer, making it impossible to accept later.

A mere inquiry about an offer does not terminate the original offer.

Silence generally cannot be considered acceptance of an offer unless explicitly agreed upon.

In Hyde v Wrench, a counter-offer terminated the original offer before it could be accepted.

In Stevenson Jaques & Co. v Mclean, an inquiry was not considered a counter-offer, so the original offer remained open.

Failing to communicate the sale of goods before acceptance by the original offeree constitutes a breach of contract.

A conditional acceptance effectively terminates the original offer, requiring the original offeror to agree to the new terms for a contract to be formed.