Contract Law

Large Group 1
Introduction to Module
Elements of Contract Formation
Offers
Module overview
• Units 1-3 Contract formation
• Unit 4 Variations
• Units 5a – 5b Terms and remedies
• Unit 6 Exemption Clauses
• Unit 7 Frustration
• Unit 8 Misrepresentation
• Unit 9 Duress and undue influence
• Unit 10 Consolidation
Contracts in everyday life
• Activity 1
• Bus, train, petrol
• Food, clothes, toiletries
• Gas, electric, water
• Cinema, sports
• Loan, credit card
• Tenancy, house, mortgage
• Education
Elements of contract
formation
Activity 2
Intention to create legal relations
Agreement = offer + acceptance
• Activity 3 : Consider when in each case there
is offer and acceptance (therefore, a contract)
Activity 3 – Qu. 3
When is an offer accepted?
1. A. You put a particular computer in to
your virtual basket
2. B. You enter your payment details and
click ‘Buy now’.
3. C. You receive the confirmation e-mail.
4. D. The goods are dispatched and you
are notified.
Offer
• Definition
• Willingness to be bound
• Certain terms
• Intention to be bound when accepted
• Contrast Invitations to treat
• Termination
• Offers can be revoked anytime before
acceptance; but must be communicated
• Rejection (incl counter-offer)
• Lapse
Unilateral contracts
• A unilateral contract is a contract
in which only one party is bound

• Rewards

• Carlill v Carbolic Smoke Ball Co

text
Activity 5 –Offers to the public
1. They cannot be revoked because it is
impossible to contact everyone you saw the
offer.
2. They can be revoked via the social media
accounts of the offeror as everyone has
access to social media.
3. They may be revoked by a notice of similar
prominence published in the same place.
 Auctions
• Sale of Goods Act 1979, s. 57(2)

• Barry v Davies (t/a Heathcote Ball & Co)

Tenders
• Spencer v Harding
• did not amount to a promise to sell to person who
made highest tender
• Blackpool & Fylde Aero Club v Blackpool Borough
Council
• Implied unilateral offer to consider bids