Contract Law 1 Lecture 3 2024 PDF
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The University of Papua New Guinea, School of Law
2024
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Summary
This document is a lecture on contract law, specifically covering the elements of a contract and the concept of offer and acceptance. A proposition by the offeror, coupled with an intimation by the offeror that they are willing to enter into a contract, forms a legal offer for the offeree to accept or reject, according to the specified terms.
Full Transcript
THE UNIVERSITY OF PAPUA NEW GUINEA SCHOOL OF LAW Semester 1, 2024 Contracts Law 1 ( 5.10704 ) Lecture 3 Elements of contract 1. Offer and Acceptance 2. Intention to create legal relations 3. Capacity to contract 4. Consideration 5. Legality of the objects of contract 6. Formalities 1. Offer and Acce...
THE UNIVERSITY OF PAPUA NEW GUINEA SCHOOL OF LAW Semester 1, 2024 Contracts Law 1 ( 5.10704 ) Lecture 3 Elements of contract 1. Offer and Acceptance 2. Intention to create legal relations 3. Capacity to contract 4. Consideration 5. Legality of the objects of contract 6. Formalities 1. Offer and Acceptance Offer A ------------------offer----------------------------> B < ---------------- acceptance--------------------- A – Offeror B - Offeree Offer A proposition by the offeror to the offeree coupled with an intimation by the offeror that he/she is willing to enter into a contract should the offeree accept the terms of the offer A. To whom? i) A particular person. identifiable person Perform Subject matter. eg Coffee – Buai etc ii) A group of persons Eg Accountants Lawyers iii) World at large Carlill v Carbolic Smoke Ball Co ( 1892) 2 QB 484 CSBC-----Advertisement Medicinal drug –influenza Take as prescribed Still contract influenza 500 pounds Mrs C---took -influenza Claimed 500--refused CSBC---Defence: No offer to Mrs C No acceptance No communication Court: World at large Mrs C accepted by purchase No requirement to communicate acceptance CSBC waived that requirement Not an offer: a) Invitations to treat. Supermarket Pharmaceutical Society of GB v Boots ( 1953 ) 1 QB 256 b) Auctions c) Advertisements d) Statement of price e) Tenders f) Memorandum seeking attention of interested buyers g) Draft Agreements Communication of offer a) Effective communication after b) Effect-----Offeree: 1) Accepts > K 2) Rejects > Destroys 3) Nothing 4) Cross – offer 5) Counter – Offer Destroys offer Legal positions B. Termination - Offer : i) Termination Before receipt Before acceptance Byrne v Van Tienhoven ( 1880 ) 5 CPD 344 ii) Rejection iii) Counter-offer Destroys offer Change positions A-------------B A
