Estoppel Non-contractual promises and representations have been relied on, and it will prevent the person who makes the representation or promises from: acting inconsistently with these promises or, at very least, from taking steps to ensure the other party does not suffer harm as a result of relying on the assumption.

Express Terms Express terms are terms incorporated by writing or oral.

Formalities A limited number of contracts must be evidenced by writing to be enforceable.

Implied Terms Terms that has not been expressed, however, it was implied that they are the terms to the contract; either by facts or by law.

Intention to be

Legally Bound "To create a contract there must be a common intention of the parties to enter legal obligations, mutually communicated expressly or impliedly"

Rose and Frank Co v JK Crompton

Offer "an offer is a statement of the terms upon which the offeror is prepared to be bound if acceptance is communicated while the offer remains alive."

Nielsen v Dysart Timbers Ltd

Privity Only the parties to a contract are legally entitled to enforce it, or be bound by it. Even if there is a benefit or burden upon a third party to the contract, the third party cannot enforce the contract.

Bonke v Flight Centre Ltd

Restitution One of the parties are not allowed to benefit unjustly.

Void: never an effective source of legal rights or obligation

Voidable: not properly formed - innocent party may be able to set the contract aside Unenforceable: contract exists but it cannot be enforced by one or both parties

Notarised: the contract was not signed

(3)

3

General Rules

Terms General Rule Case

Acceptance What was offered is all that can be accepted.

Automatic Ticket Machines

The offer is the display of the ticket machine while the acceptance is when a person puts money into the machine.

Thornton v Shoe Lane Parking

Consideration "an executory agreement by which the plaintiff agrees to do something on the terms that the defendant agrees to do something on the terms that the defendant agrees to do something else, may be enforced, if what the plaintiff has agreed to do is 'either for the benefit of the defendant or to the trouble or prejudice of the plaintiff'."

Bolton v Madden

Construction A contract is to be given the meaning intended by the parties. Intention can be object and expressed.

Exclusion clause "[T]he interpreation of an exclusion clause is to be determined by construing the clause according to its natural and ordinary meaning, read in the light of the contract"

Formalities Where the parties agree that writing is required and where a statute requires a non-verbal contract - formalities requirements (where particular formalities that require the contract to be written) Four Corners

Rule Denies exemption to the person relying on the clause because s/he acts outside the contract.

Implied Duty to

Co-Operate "Applicable to every contract that each party agrees, by implication, to do all such things as are necessary on his part to enable the other party to have the benefit of the contract."

Butt v McDonald

Implied Terms - court of

dealings

Where the parties have concluded several contracts on similar terms agreed in the same manner, this may have the effect of incorporating the terms into a subsequent contract between them.

Minors Contracts with minors are voidable at the option of the minor

Goode v Harrison Parol Evidence

Rule

"If there be a contract which has been reduced into writing, verbal evidence is not allowed to be given what passed between the parties either before the written instrument was made or during its preparation, so as to add to or subtract from or in any manner to vary of qualify the written contract."

Goss v Nugent

Privity Only parties to a contract can enforce it. Coulls v Bagot's Executor and Trustee Co Ltd

Reasonable notice

Terms on a sign, docket, ticket etc cannot be part of a contract unless the other party is given reasonable notice of the incorporated terms.

Balmain New Ferry Co v Robertson

Ticket Cases Issue of ticket is an offer that passenger can accept or reject after s/he has had a reasonable time to consider the conditions of the ticket.

Written Terms -

signature If your contract is in writing and it is signed by both parties, then the words on the document are incorporated as terms of the contract and the parties will be bound by all the terms contained in the agreement.

(4)

4

Offer

Unilateral - the contract is formed after one party completes their obligation. Hence, then only one party have obligations to complete the contract. - Carlil v Carbolic Smoke Ball

Bilateral - the contract is formed immediately. Hence, then they both have obligations to complete the contract. - United Dominions Trust v Eagle Aircraft Services

Basic Principle

 An offer can be expressed or implied

 Offer must put forward a proposal for consideration

 Offeree must be able to choose between accepting or rejecting it

 It is in a form of a command, then there is no binding contract

 Intention to be legally bound

 Offer must be communicated to the other party (offeror or agent) To whom can an offer be made?

 Individuals

 Groups of people

 General public - world at large (Carlil v Carbolic Smoke Ball)

 Reliable third party - somebody that is reliable and can give you all the facts.

 But only the person/s for whom an offer is intended can accept Agreement without clear offer and acceptance

On page #

When is an 'Offer' not an 'offer'?

 No intention to be legally bound

 Mere puffery - an exaggerated or perhaps unsustainable claim about product (a statement that is too good to be true). It does not give any terms to legally rights. - Carlil v Carbolic Smoke Ball

 Request for information - it's not an offer nor acceptance, but just to ask for more information about the offer and terms - Harvey v Facey

 Invitation to treat - some that looks like offers is actually a invitation to treat (treat = to deal) - Gibson v Manchester City Council

Auctions: --> Smythe v Thomas

 Auctioneer invites bid Invitation to Treat

 People bid Offer

 Fall of the hammer Acceptance

Internet Auctions

 If it gives you the option of two: it's an offer. Ex. they say buy now for $5 and by clicking buy now is the acceptance.

 Offer that was made when the customer is prepared to put the money in the machine, the acceptance is when the customer puts the money in the box

 s26B Electronic Transaction (Qld) Act 2001 (Qld) page # Tenders info on page

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