ContractLaw

-CaseAnalysisModuleCaseofIRAC〔1〕AlanboughtafieldfromBill,afterBilltoldhimthatitwasbigenoughfor6horses.Billhadneverkepthorsestherehimself,however.Infactitwasonlybigenoughfortwohorses.ModuleCaseofIRAC〔1〕Issue:-misrepresentationIscontractvoidbecauseofmisrepresentation?Rule(setoutthelaw):-Thisquestionisaboutmisrepresentation.Amisrepresentationisastatementoffactwhichisamaterialinducementtoenterintoacontract.Itmaymakeacontractvoidable.ItmustbeastatementofFact.,notopinion.(BissetvWilkinson)(crucialcase)ModuleCaseofIRAC〔1〕ApplicationofLaw:Inthiscase,Billisonlyexpressinganopinionashehasneverkepthorsesinthefieldhimself,sothisisnotrepresentationofafact.Conclusion:-Alancannotclaimmisrepresentation,thecontractisvalid.TrainingofIRAC(2)

Fact:

TonyofferedtosellhislaptoptoGinafor$500.Ginasaidshewouldbuyitifshecouldraisethemoney.TonysaidhewouldwaituntilSundaytoallowhertofindthemoney.However,onFridayStaceyofferedTony$600forthelaptopandTonyacceptedStacy’sofferandsoldittohim.TonytriedtoringGinatotellherthetablehadalreadybeensoldsoshecouldnotbuyit.Gina’ssisteransweredthephoneandtookthemessage,butforgottotellGina.OnSundayGinaarrivedatTony’sflatwiththemoney.

Issue:

offerandacceptanceistherecontractbetweenpartiesbecauseofaneffectiveacceptancefromGina?TrainingofIRAC(2)Rule:Theofferorcanwithdraw(revoke)anofferatanytimebeforeitisaccepted.DickinsonvDodds(1876)p71Acceptanceis“Afinalandunconditionalacceptanceofthetermsoftheoffer〞.Tobelegallybinding,threerulesmustfulfil:1.mustbeamirrorimageoftheOffer2.mustbefirm:absolute,unconditional3.communicatedtotheofferor;Anoffercanbeaccepteduntilitisrevoked,butapromisetokeepanofferopenuntilacertaindateisnotbindingunlessitissupportedbyconsideration.RoutledgevGrant(1828)offercanberevokedatanytimebeforeacceptance,butrevocationisnoteffectiveuntilitiscommunicatedtotheofferee.TrainingofIRAC(3)Application(a)：InthiscasethereisanofferbyTonytosellGinahislaptopfor$500.WhenGinasaysshewillbuyifitshecanraisethemoney,thisisnotanacceptance,becauseitisconditional–notabsoluteandunqualified.TonypromisestokeeptheofferopenuntilSunday,butheisnotboundbythispromiseasGinahasgivennoconsiderationforit.Sohecouldrevoketheofferbeforetheacceptanceiscommunicatedtohim.

TrainingofIRAC(4)Application(b)：TonyisthereforeentitledtorevoketheofferonFriday,buttherevocationisnoteffectiveuntilitiscommunicatedtoGina.Gina’ssisterfailedtopassonthemessagebecausesheforgotandthereforeGinadidnotreceivenoticeoftherevocation.Sotherevocationnoticeofofferisfailed.SowhensheturnedupatTony’sflatwiththemoney,shewasacceptingtheoffereffectively.TrainingofIRAC(5)Conclusion:

Therefore,thereisabindingcontractbetweenTonyandGina.Case1Fact:GinapaidanEnglishlanguageexpertTony$750toimproveherEnglishvocabularyreadyforanexaminationshewasgoingtotakelaterintheyear.Ginawasverykeentopass,andafortnightbeforetheexamshesaidtoTony“IfIpasstheexamIwillpayyouanextra$250asabonus〞.GinadidpasstheexambutisrefusingtopayTonythe$250.RationaleIssue:considerationRule：considerationis“thepricebywhichonepartyboughttheotherparty’sactorpromise〞DunlopvSelfridge(1915)Acontractisonlylegallybindingifthereisconsideration.Apromisetocarryoutexistinglegalobligationsdoesnotamounttoconsideration(CollinsvGodefroy)asyouareonlydoingwhatyouarelegallyobligedtodoanyway.applicationGinapaidanEnglishlanguageexpertTony$750toimproveherEnglish,bothpartieshadcreatedthecontractofservice,Gina’ssubsequentpromiseo