Making a contract

  1. Carlill v Carbolic Smoke Ball
    • Issue 1: intention to be legally bound
    • 2: offers made to world at large
    • 3. acceptance by conduct
    • 4. performance of an act as consideration
  2. Balfour v Balfour
  3. Cohen v Cohen
    dress allowance, not legally enforceable.
  4. Merritt v Merritt
    not in amity - goodwill broken down, intend agreement to be legally binding
  5. Ermogenous v Greek Orthodox Community of SA
    intention to be legally bound - presumptions refuted.
  6. Esso Petroleum v Commissioners of Customs and Excise
    • intention to be legally bound; commercial agreements
    • Facts: commemorative coins, subject to purchase tax
    • Issue: Did Esso have intention to be legally bound by offer to give coins to motorists who purchased petrol?
    • Decision: Yes - legally binding promise, subject to purchase tax.
    • Reason: commercial promotion, Esso gained. Commercial circumstances - intention to be legally bound.
  7. Masters v Cameron
    • intention to be legally bound, condition intention
    • Facts: Cameron agreed to sell farm to Masters. Both parties signed written agreement, subject to preparation of formal contract by lawyer.
    • Decision: Cameron not intended to be bound until a formal contract prepared, signed.
  8. Perri v Coolangatta Investments
    • Facts: Perri agreed to buy property, but first needed to sell. Failed to do so within reasonable time.
    • Issue: Breach of contract?
    • Yes.
    • Only performance of contract made conditional - rather than completion of contract. Contract itself already in existence.
  9. Thomas v Thomas
    • token consideration insufficient
    • Facts: promise to pay $1 a year, keep house in good condition. Sufficient consideration?
    • Yes. Enforceable. Requirement that consideration be of some value.
  10. Stilk v Myrick
    • insufficiency of past consideration
    • Facts: seamen deserted from ship, captain promise to crew to share deserters pay if they worked extra hard.
    • Issue: Had crew given consideration for captain's promise, so to create binding contract?
    • Decision: crew given nothing of value in exchange. -> no binding contract/
    • Reason: when originally signed on for voyage, crew made promise to do whatever necessary in case of emergencies - already bound to do extra work -past consideration.
  11. Placer Development v Commonwealth
    • illusion of promise
    • Facts: imported timber products, "at an amount or at a rate to be determined by Commonwealth from time to time"
    • Issue: Was what government said about paying subsidy legally enforceable?
    • Decision: No. Not a promise at all.
    • Reason: unspecified amount of money.
  12. Partridge v Crittenden
    • Facts: advertisement in newspaper. Unlawfully 'offering' wild birds for sale.
    • Issue: Was advertisement offer in legal sense?
    • Decision: No. Only invitation to treat. Buyers themselves offer to buy advertised birds.
    • Reason: invitations to treat are not offers for sale.
  13. Henthorn v Fraser
    • acceptance by post
    • Facts: letter of acceptance posted, but whilst in transit, Fraser received higher offer.
    • Issue: Had Henthorn already accepted offer?
    • Decision: Yes. Effective as soon as letter of acceptance posted.
    • Reason: acceptance by post need not be specifically authorised for it to be effective as soon as letter posted.
  14. Brinkibon v Stahg Stahl und Stahlwarenhandels-gesellschaft mbH
    • contract; acceptance by telex
    • Issue: acceptance sent by telex in London, received in Vienna, when did acceptance take effect?
    • Decision: Took effect when telex received in Vienna.
    • Instantaneous.
  15. Coulls v Bagot's Executor and Trustee
    • contract; formation; privity; rights of third parties
    • Facts: royalities given to wife, Doris. Coulls died. Contract was not of personal nature, not terminated by death. Contract remained enforceable against estate.
    • Issue: Did Doris have legally enforceable right to payment?
    • Decision: No contractual obligations owed, because she was not a party to contract.
    • Reason: She had not provided any consideration, no contractual right to sue. Royalties should be paid to estate, distributed to beneficiaries.
  16. Price v Easton
    • contract; formation; privity; parties
    • Facts: builder owed money to Price, did not have money. If builder did work for Easton, Easton would pay Price money. Easton failed to pay.
    • Price bought action against Easton.
    • Issue: Was Price entitled to enforce promise?
    • Decision: No.
    • Reason: Price not party to agreement, doctrine of privity, Price did not acquire legally enforceable rights.
Card Set
Making a contract
Chapter 5