Section 1 Contract Law report for a law firm

Contract Law Outline

Contract law in order to be bound should have the three important parts, in
which is Offer acceptance and consideration.
Contract law can be described in different classification may be Bilateral between
two or more parties or Unilateral.
Distinguish between Invitation to treat and An Offer
Invitation to Treat
Advertisements of goods for sale are considered normally an Invitation to treat.
Eg: Partridge v Crittendem, 1968.
Catalogues and prices lists distributed by traders , normally be regarded as
Invitation to treat Eg. Grainger and Sons V Gough 1896 and Carbolic Smoke
Ball
Offer
Where two parties have achieved an agreement
Smith v Hughes
An offer may be express or implied those conduct. It may be addressed to one
particular person, a group of persons, or to the world, at large as in an Offer a
rewards.
Methods of communication by post rule; that the rule that Acceptance must be
communicates when affected when is posted. Eg Adams v Lindsell 1818.
The post rule
is essentially as a rule of communicated and is usually justified on the grounds
that if the Offeror chooses the post as a mean of effecting a contract, they must
accepted the risks also.
Consideration and Rules:

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A Binding Contract must be supported by consideration ,this mean a Valuable

Consideration in the Law of Contract.
Consideration has been defined in terms of Act or Fordearance of one party, or
the promise tereof,is the mind for which the promise of the others is bought , and
the promise thus given for value is enforceable.(Pollock ,approved by Lord in
Dumlop Pneumatic type Co v Selfridge LTD ,HC 1915.
Test of Enforceability

The best way of discovering whether the parties intended to enter into a contract
is not to ask then, but to apply the Subjective Test , would give the explanation
of a Binding Contract .
The Court app[ly the Objective Test and asks whether the reasonable
bysander ,after taking into account all the circumstances of the case. Eg. In
Carbolic v Smoke Ball , the company has deposit 1000.00 in the Alliance bank
is showed that his was sincerely in this matter. The court held that any objective
bysander who read this would presume an intention to enter into a binding
Contract.