Contract Law 1 L 3 .docx

THE UNIVERSITY OF PAPUA NEW GUINEA SCHOOL OF LAW Semester 1, 2024 Contracts Law 1 ( 5.10704 ) Lecture 3 Elements of contract Offer and Acceptance Intention to create legal relations Capacity to contract Consideration Legality of the objects of contract Formalities Offer and Acceptance Offer A ------...

THE UNIVERSITY OF PAPUA NEW GUINEA SCHOOL OF LAW Semester 1, 2024 Contracts Law 1 ( 5.10704 ) Lecture 3 Elements of contract Offer and Acceptance Intention to create legal relations Capacity to contract Consideration Legality of the objects of contract Formalities 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 To whom? A particular person. identifiable person Perform Subject matter. eg Coffee – Buai etc A group of persons Eg Accountants Lawyers 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: Invitations to treat. Supermarket Pharmaceutical Society of GB v Boots ( 1953 ) 1 QB 256 Auctions Advertisements Statement of price Tenders Memorandum seeking attention of interested buyers Draft Agreements Communication of offer Effective after communication Effect-----Offeree: Accepts > K Rejects > Destroys Nothing Cross – offer Counter – Offer Destroys offer Legal positions Termination - Offer : Termination Before receipt Before acceptance Byrne v Van Tienhoven ( 1880 ) 5 CPD 344 Rejection Counter-offer Destroys offer Change legal positions A-------------B A<---------------B Time stipulation Lapse of time No time stipulation Reasonable time Reasonable time? Circumstances. Failure of a condition subject to which offer made Eg Destruction of subject-matter Death Acceptance K