Business Law

A Valid Contract MUST have 3 ELEMENTS!

OFFER (5 rules) MUST BE SATISFIED!!)

1. Sufficiently complete

2. Promissory

a. Placer Development Ltd v Cth

3. Intention to result in a contract if accepted

b. Partridge v Crittenden

c. PSGB v Boots Cash Chemists(Southern) Ltd

4. Addressed to a person/identified group?

d. Carlill v Carbolic Smoke Ball Co

5. Has the offer expired/withdrawn/counter offer?

Is it a formal or informal contract?

* Formal Deed = ENFORCEABLE CONTT

* Informal Is there consideration?

* NO UNENFORCEABLE

* YES (SEE BELOW)

VALID

AGREEMENT

VALID CONTRACT

ELEMENT 3:

Deed OR Consideration

ELEMENT 2: Intention to be legally bound

(Judged objectively reasonable person test)

* What sort of agreement is it?

(REBUTTABLE PRESUMPTIONS)

* Domestic (not binding)

* Commercial/Business (binding)

State clearly:

* What is being bought/sold?

* Price payable

* Was there OFFER & ACCEPTANCE?

ELEMENT 1: Agreement

Consideration MUST be

* Something of value Thomas v Thomas

* Can be a thing/money/promise

* Cannot be something done in the past

* Stylk v Myrick

Commercial/Business

1. Esso Petroleum v Commissioners of Customs & Excise

2. Ermogenous v Greek Ort. Community of SA Inc

Domestic

1. Balfour v Balfour

2. Cohen v Cohen

3. Merritt v Merritt

ACCEPTANCE (4 rules) MUST BE SATISFIED!!)

1. In the same terms as offer

2. Made while the offer is still in existence

3. Made by the person to whom the offer was addressed

4. Made in acceptable form

How was the offer accepted?

1. Instantaneous (face to face, fax, phone)

a. fax Brinkibon

2. Email similar to instantaneous- designated info system

3. Post Postal acceptance rule

b. Henthorn v Fraser

Do I need to know all the required cases for...