Contract Law 1 Lecture 4 PDF

THE UNIVERSITY OF PAPUA NEW GUINEA SCHOOL OF LAW Semester 1, 2024 Contracts Law 1 ( 5.10704 ) Lecture 4 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 4 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 Communication of offer a) Effective communication after R v Clark ( 1807 ) 40 ER 1101 Williams v Cawardine ( 1833) Fitch v Snedaker 38 NY ( 1868 ) b) Effect-----Offeree: 1) Accepts  K 2) Rejects  Destroys offer 3) Nothing  Presumed to reject  Circumstances 4) Cross – offer  Coffee  Drying equipment  Workers Tinns v Hoffman & Co ( 1873 ) 29 LT 271 5) Counter – Offer  Destroys offer  Legal positions Hyde v Wrench ( 1841 ) 49 ER 132 6) Makes an inquiry Stevenson v McLean ( 1881 ) 5 QBD 346 A. Termination - Offer: i) Termination  Before receipt  Before acceptance Dickenson v Dodds ( 1867 ) 2 Ch D 463 Byrne v Van Tienhoven ( 1880 ) 5 CPD 344 Luxor ( Eastbourne ) v Cooper ( 1941 ) 1 ALL ER 33 Errington v Errington and Woods ( 1952 ) 1 KB 290 McDonald and McDonald v Papua Construction Ltd ( 1964 ) PNGLR 22 ii) Rejection iii) Counter-offer  Destroys offer  Change legal positions A-------------B A