Cases

01. Parker v Clark [1960] is an English contract law case concerning reliance and creation of legal

relations in a social type of agreement.

Facts

The Clarks, an elderly couple, invited their niece and her husband, the Parkers to live with them. The Parkers said they would like to, but it would mean they would have to sell their own house. The Clarks assured the Parkers that in doing so they would leave a share of the clark house to Mrs Parker, and her daughter, in their will. The Parkers sold their house, lent the balance of the money to their daughter who in turn bought a flat. Then the Parkers moved in. But they fell out. The Clarks asked them to leave, and the Parkers sued for breach of contract.

Issue

The issue was whether the two families had intended to create a legal relationship.

Decision

The Clarks were liable for damages to the Parkers given that the Parkers had relied to their detriment on the assurance of the Clarks that they would have a place to stay.

Reasoning

The main issue that calls for determination and which will resolve the dispute is whether the Clarks and the Parkers had any intention to create a legal relationship. In the facts above, we see that the defendants suggested that the claimants come to live with them. [Page: 111]. So the facts show that both the defendants and the claimants had some kind of intention to create a legal relationship and therefore the Parkers‟ action against the Clarks for breach of contract was validated by the court.

02. Adams v Lindsell [1818] is an English contract case regarded as the first case towards the establishment

of the "postal rule" for acceptance of an offer. Ordinarily, any form of acceptance must be communicated expressly to an offeror; however, it was found that where a letter of acceptance is posted, an offer is accepted "in course of post".

Facts

The case involved two parties in the sale of wool. On 2 September, the defendants wrote to the plaintiffs offering to sell...