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1、1ContractContract LawLaw NotesNotesContractsContracts A AOfferOfferPage 9Bilateral con tractsUn ilateral con tractsOffers to the p ublic at largeWhat is an offer?-Mere puff-Supply of in formati on-In vitati on to treatPage 9Categoriz ing tran sacti ons- Advertiseme ntsa)b)c)d)Advertiseme nts in a ca
2、talogue or a curricular Advertiseme nts in n ews papers or magaz ines Advertiseme nts app eari ng on the internet Disp lay of goods-Aucti onsa)Advertisement of auctionb)Auctions with reservesc)Auctions without a reserve -Ten deri ng-Sta nding offers Op ti onsCommuni cati on of an offerTermin atio n
3、of an offer- An offer may be term in ated bya)b)c)d)e)Revocati on by the offerorRejected by the offereeLapse of timeFailure of a con diti on subject to which the offer was madeDeathAcceAcce ptanceptanceRequireme nts of acce ptanceAcce ptance must corres pond to offer- Offeree must have kno wledge of
4、 and act in relia nee to an offerPage 10Page 12Page 13Page 14Page14Page1423A coun ter offer is not acce ptanceAcce ptance must be unq ualifiedMere enquiry does not con stitute acce ptanceNotificatio n to the offerer of the fact of acce ptance-Method of acce ptancea)Method of acceptance stipulated by
5、 offerb)Acceptance by sileneec)Acce ptance by con duct-In sta ntan eous commun icatio n: Acce ptance must be com muni cateda)General ruleb)Meaning of in sta ntan eous com muni cati on-Po stal acce ptance rulea)b)c)d)e)Stateme nt of the ruleP olicy beh ind the ruleTo what com muni cati on does the ru
6、le exte nd Where is the rule dis pl acedRevocati on of acce ptance p rior to rece iptAcce ptance in un ilateral con tracts-Acce ptance com monly by con duct-Withdrawal of an offer after acce ptance has comme needWho may acce pt an offer?Con tract formatio n: time and pl ace-In sta ntan eous com muni
7、 cati on-P ostCertaintyCertainty andand CompletenessCompletenessStateme nt of the rule- Facets to the principalAmbiguity and un certa in ties-In dividual terms-Agreeme nts to n egotiateSaving ambiguous, un certa in or meanin gless terms-Link to exter nal sta ndard-Link to reas on able ness sta ndard
8、-Severa nee-Waiver or removal of certa intyIncomp lete agreeme nt-Agreeme nt contains mecha nism to compi etea)Referenee to a third partyb)Discreti on reta ined by con tract ing p arty-Breakdow n of mecha nism to comp letePage 16Page 18Page 18Page 19Page 19Page 20Page 20Page 21Page 2245Saving incomp
9、i ete agreeme nts-Incompi eti on of terms-Failure to sp ecify a p ricea)b)c)Page 23d)Con tract sile nt on p riceCon tract p rovides for p arties to agree in the futureCon tract make pro visi ons for mecha nism to compi eteCon tract pro vides for p ayme nt of a reas on able priceSubject to agreeme nt
10、sSubject to finance agreeme ntsa)Satisfactory financeb)Steps to be taken to obtain finance Subject to con tractIntentionIntention toto createcreate legallegal relationsrelationsPage 27Stateme nt of rulePage 27Domestic and social relati onships-P resu mp ti on-Rebutti ng the p resu mp ti ona)b)c)d)Hu
11、sba nd and wifeSep arated husba nd and wife Other family relati on shi ps Social relati on shi psCommercial agreeme nt-P resu mp ti on-Rebutti ng the p resu mp ti onGover nment activities-Commercial agreeme nts- Policy in itiativesVolun tary associati onsCircumsta nces in dicat ing abse nee of inten
12、t-Honour clause-Pro moti onal puff and free gifts-Ex gratia p ayme nts and without p rejudice offers-Letter of comfort-Letter of intent and un dersta ndingConsiderationConsiderationNature of con siderati on- Con siderati on in bilateral con tractsPage 27Page 29Page 30Page 30Page 30Page 32Page 3267Co
13、n siderati on in uni lateral con tracts Executed and executory con siderati onRules gover ning con siderati on-Con siderati on must move from the pro miseea)Ben efit n eed not move to the pro misorb)Joint promisesc)Overlap with Doctrine of privity-Con siderati on must be barga ined for-Con siderati
14、on must be sufficie nta)General principalb)Consideration need not be adequatec)Con sideratio n can be nominal-Con siderati on must not be p asta)General principalb)Past consideration distinguished from executed con siderati onPage 33Con siderati on and formal agreeme nts - DeedsPage 35Con siderati o
15、n: sp ecific exa mp les-Moral con siderati on-P erforma nee of exist ing dutiesa)Performanee of existing contractual dutiesb)Performanee of a public dutyc)Where promise is made to a third party-P ayme nt of a debta)Rule in Pinnel?s caseb)Circumsta nces in which the rule will not op erate*Page 35P ar
16、ties en ter into a deed Accommodati on to ben efit the creditor Amount owing is dis pu tedP ayme nt by a third partyComp ositi on with creditors*Forbeara nee to sueBarga in for con duct already p erformedEquitableEquitable EstEst opoppelpelPage 38Eleme nts of est oppel-Assu mp ti on of exp ectati on
17、-En couraged or in duced-Relia nee-Kno wledge or inten ti on-Detrime nt-Failure to avoid detrime ntPage 39RemediesPage 4189Page 42Page 42P romisorBen eficiaryP romiseAcce ptanceDefen cesVariati on and rescissi on of pro miseImp ositi on of burde nsCom mon law still app licablePage 45FormalitiesForma
18、litiesPage 47Guara ntees-Nature of guara ntees-Tran sacti on which are not guara nteesa)b)c)d)Page 47Con tracts of in dem nityPro mise of guara ntee made to the debtor Person agrees to take over the debt of ano ther The agreeme nt impo ses no person al liability on the personLetters of comforte) Req
19、uireme nts of writ ing: contenta)Information particular to the guaranteeb)Ack no wledgeme nt of the agreeme nt Requireme nts of writi ng: sig ned by p arty to be charged or age ntGen eral ruleStatutory abrogati on of rights -Quee nsla nda)b)c)d)e)f)g)h)-Common wealth-In sura nee Con tracts Act 1984
20、(Cth) s 48En titleme nt of a n amed person to claim- Maritime con tracts of carriageP P rivityrivityPage 4210Page 50a)Servants or agents of sea carriersb)Con sig nees and en dorseesSo called exe mp ti on at com mon law-AgencyDefin iti onExe mp ti on clauses and third p arties TrustsUn just en richme
21、 ntCon tracts relat ing to land-Nature of con tract n eed ing writ ing-Requireme nts of writ ing: content11Page 52Page 53a)Information particular to the guaranteeb)Ack no wledgeme nt of the agreeme ntRequireme nts of writi ng: sig ned by p arty to be charged or age ntJoin der of docume nt-Refere nee
22、 to a docume nta)Documents that are physically connectedb)Documents that are executed at the same time-Refere nee to a tran sact ionEffect of statutory non-comp lia nee: com mon law-Con tract valid to p ass title-Recovery of money p aid un der unen forceable con tracta)Recovery of depositb)Recovery
23、of amount more than deposit-Other restituti onary claim may still be availableEffect of statutory non-comp lia nee: equity- Doctri ne of part p erforma neea)P age 55b)c)Acts are un equivocally referable to some such con tractActs done in relia nee on the agreeme nt and with kno wledge of the other p
24、 artyActs done by the p arty seek ing to en force the con tractOral con tract must be otherwise en forceabled)Est oppelCon structive trustEstablishingEstablishing contractualcontractual termterms sPage 56Incorpo rati on by sig naturea)General ruleb)Whe n the rule is dis placedPage 56Incorpo rati on
25、by no tice: un sig ned docume nta)Reas on able ste ps take n by the defe ndantb)Reas on able ste ps must be take n on or before con tract formatio nPage 57Incorpo rati on by no tice: sig nsc)Reas on able ste ps take n by the defe ndantd)Reas on able ste ps must be take n on or before con tract forma
26、tio nPage 58Incorpo rati on of no tice: websitePage 59Incorpo rati on by refere neePage 591213Incorpo rat ing oral terms-Mere puff-Rep rese ntati on or terma)b)c)Page 59Words or con duct of p artiesKno wledge and exp ertise of stateme nt maker Stateme nt maker has con trol in relati on to in formati
27、o nOral stateme nt not reduced to writ ingIn terval of timed)e)Collateral con tractsa)Nature of a collateral con tractb)Bip artite and trip artite collateral con tractsc)Con siste ncy with the mai n con tractP arole evide nee rule-Stateme nt of the rule-When the rule app lies-Exce ptio ns of the rul
28、ea)b)Page 61c)d)e)Evide nee of a collateral con tractEvide nee that the writte n con tract is not yet in forceEvide nee that the writte n con tract was later varied or changedEvide nee to imp ly a termEvide nee n ecessary for rectificati onImp lied terms- Terms imp lied to give effect to the p resum
29、ed inten ti on of the p artiesa)b)Page 62Term imp lied on the basis of bus in ess efficie ncy Term imp lied from p revious con siste nt course of deali ngsTerm imp lied from custom or usageTerm imp lied to comp lete an agreeme ntc)d)Terms imp lied irres pective of p arties inten ti onse)f)g)h)Term i
30、mp lied as a legal in cide nt of a p articular class of con tractGen eral duty of co-op erati onImp licati on of duties of good faith, fair deali ngs and reas on able nessTerm Imp lied by statuteConstructionConstruction ofof termstermsPage 66Interp reti ng the meaning of terms-Gen eral app roach-Adm
31、issible evide neea)The parole evidenee ruleb)Factual matrixPage 661415Legal effect of words: types and terms - Promissory terms a)Page 69b)c)ConditionsThe statutory position WarrantiesThe statutory position Intermediate or innominate termsPage 72c)Exceptions to the parole evidence rule Ambiguity Ide
32、ntification of subject matter Identification of parties and their relationshipIdentification of the real consideration Custom or usageRectificationInadmissible evidencea)Subjective intentionb)Prior negotiationc)Subsequent conductContingencies- Conditions precedent- Conditions subsequentExemption cla
33、uses- Specific rules of construction a) b)Page 73c)The contra proferentem ruleAttempts to exempt negligenceThe rules regarding attempts to exempt negligence The four corners rule1617ContractContract LawLaw ExamExam NotesNotesOfferOffer:An offer is an exp ressi on to ano ther of a willi ngn ess to be
34、 bound by the stated termsAustralia n Woolle n Mills Pty Ltd v The Commo nwealthBilateralContractsBilateralContractsUn der Bilateral Con tracts each p arty un dertakes to the other p arty to do or to refra in from doing someth ing, and in the eve nt of his/her failure to p reform his/her un dertak i
35、ng, the law pro vides the other party with a remedy.Un ited Domi nio ns Trust Ltd v Eagle Aircraft Services LtdUnilateralUnilateral ContractsContractsUn der un ilateral con tracts the pro misor un dertakes to do or to refrain from doing someth ing if ano ther p arty, the pro misee, does or refra ins
36、 from doing someth ing, but the pro misee does not at the time of the offer un dertake to do or to refra in from doing that thing.Un ited Domi nio ns Trust Ltd v Eagle Aircraft Services LtdThe po siti on in such cases is simply that the con siderati on on the part of the offeree on the part of the o
37、fferee is compi etely executed by the doing of the very thi ng that con stitutes acce ptance of the offer.Australia n Woolle n Mills Pty Ltd v The Commo nwealthOffersOffers toto thethe P P ublicublic atat LargeLargeAn offer can be made to the p ublic at large.Carlill v Carbollic Smoke Ball Com panyW
38、hatWhat isis notnot anan Offer?Offer?MereMere PuffPuffSometimes stateme nts can be regarded only as ,mere pu fferytke claims are made only for advertis ing purp oses and mea n nothing.Carlill v Carbollic Smoke Ball Com pany18SupplySupply ofof InformationInformationThe supply of in formatio n is not
39、an offer.A request for in formatio n must be discer ned from a con tractual offer. A clearer in dicati on of a prep ared ness to en ter into a con tract, tha n merely p rovidi ng terms or in formatio n upon which a party maybe prep ared to en ter into such a con tract, is n eeded.Harvey v FaceyInvit
40、ationInvitation toto TreatTreatAn in vitati on to treat is an in dicator of a p arties willi ngn ess to n egotiate entry into a con tract. It is a tech nique used by a p arty who desire ano ther p arty to make an offer and cannot be con strued or the terms be acce pted as if it were a valid legal of
41、fer in itself.Carlill v Carbollic Smoke Ball Com panyThe dis play of goods in a store is an in vitati on to treat.Pharmaceutical Society of Great Britai n v. Boots Cash Chemists (Souther n) LtdAn advertiseme nt that gives in formati on about goods for sale and their p rice will gen erally be an in v
42、itati on to treat rather tha n an offer.P artridge v Critte ndenCategorizingCategorizing TransactionsTransactionsAdvertisementsAdvertisementsMost advertiseme nts are con sidered in vitati ons to treat but some may be regarded as offers depending on Ian guage used in the advertiseme nt and other rele
43、va nt factors.a)Advertisements in a catalogue or in a curricular.Circulars, which pro vide in formatio n about items for sale and their p rices, are regarded as in vitati ons to treat. If it were regarded as an offer and the manu facturer ran out of stock, they would be in breach of con tract for an
44、yone who acce pted such an offer as they could not pro vide stockGrain ger v Goughb)Advertisements in News papers and Magazines.These are also con sidered in vitati ons to treat uni ess the advertiseme nt is couched in terms which in dicate the retailers willi ngn ess to be bound if the sp ecified t
45、erms are acce pted (eg. there is a pro mise (Carlill) rather tha n a mere in vitati on (P artridge v Critte 19nden).c)Advertisements appearing on the Internet.The app licati on of the same principle as n ews papers and magaz ines is used.d)Display of Goods.Items app eari ng in retail outlets, eve n
46、if the p rice is attached, are regarded as an in vitatio n to treat.Pharmaceutical Society of Great Brita in v Boots Cash ChemistsAuctionsAuctionsa)Advertisement of AuctionsThe advertiseme nt of an auct ion is con sidered an in vitati on to treat on the part of the aucti on eer. The aucti on eer may
47、 withdraw items from the aucti on or can cel the aucti on all together without in curri ng any liability from poten tial bidders.Harris v Nickers onThe aucti on eer may withdraw various lots from the auct ion or can cel the auct ion altogether without in curri ng any liability from poten tial bidder
48、s.Harris v Nickers onb)Auctions with ReserveEach bid rep rese nts an offer, which the auct ion eer may reject or acce pt. Acce ptance of an offer occurs, and an agreeme nt is formed, whe n the aucti on eer kno cks dow n the prop erty to the successful bidder.Because the agreeme nt is not formed un t
49、il the bid is kno cked dow n, the bidder can withdraw a bid (offer) before this time.Payne v Cavec)Auction without a ReserveEve n in an auct ion without a reserve, each bid rep rese nts an offer that could be acce pted or rejected by the auct ion eer.AGC Ltd v. McWhirterTenderingTenderingAn advertis
50、eme nt for ten ders will gen erally be the same as an advertiseme nt for an aucti on, which is ak in to an in vitatio n to treat. Therefore no liability will be in curred if the person 20does not acce pt any of the ten ders or eve n con sider them in a bona fide way. Each ten der will be con sidered
51、 an offer, which can be acce pted or rejected.Spen cer v. HardingStandingStanding OffersOffersA sta nding offer is an in dicatio n by one p arty of his/her willi ngn ess to pro vide goods over a sp ecified p eriod of time.A sta nding offer is acce pted every time an order is p laced. If the goods ar
52、e not delivered or are refused the offending party will be in breach of con tract.Great Northern Railway Co v. WithamAn offeror may withdraw the offer, any time, before acce ptance of the offer is made in the form of an order.Further, uni ess the p arties agree to the con trary, there is no obligati
53、 on of the offeree to order goods only through the offeror, (eg. the offeree may choose not to acce pt the sta nding offer)Colo nial Ammun iti on Co v Reid OptionsOptionsThe sta nding offer may be revoked at any time before acce ptance by the offeree. However, if the offeree pro vides con siderati o
54、n (eg paying mon ey) to the offeror to kee p the offer open for some p eriod, the offer cannot be withdraw n duri ng this p eriod.Routledge v GrantCommunicationCommunication ofof anan OfferOfferFor an offer to be valid it must be com muni cated to the offeree by the offeror, or some one authorised b
55、y the offeror.Cole v Cott in ghamAn offer becomes effective once it is com muni cated to the offereeTaylor vLairdAcce ptance must take p lace in relia nee upon an offer. If the offeree p erforms a p articular act that corres ponds to the terms of the offer without kno wledge of the offer, there is n
56、o agreeme nt, and no con tract comes into existe nee.Ti nn v Hoffma n & CoIf it is an offer to the world at large, the offer could be acce pted by any fulfilli ng the 21requireme nts of the offer.Carlill v Carbolic Smoke CompanyTerminationTermination ofof anan OfferOfferAn offer may be termi nated a
57、t any time before it is acce pted. However, once an offer is acce pted it becomes irrevocable.Goldsbrough Mort & Co Ltd v Qui nnAnAn offeroffer maymay bebe terminatedterminated bybya)Revocation by the offerorRevocatio n is the formal withdrawal of the offer by the offeror. Before acce ptance, an off
58、er can be freely revokedGoldsbrough Mort & Co v Qui nnVeivers v Cordi nglyUni ess there is a pro mise, supp orted by con siderati on or un der seby the offeror to kee p it open for a fixed p eriod.Routledge v GrantA revocati on will only be effective once it has bee n com muni cated to and received
59、by the offereeBryrne v Leon Van Tie n Hove nIn un ilateral con tracts, the offer cannot be withdraw n after the offeree has beg un to p erform the n ecessary con diti ons of acce ptance of the offer and comp leti on of the con tract.Abbot v Lanceb)Rejected by the offereeThe rejecti on must be com mu
60、ni cated to the offeror before it is effective. Once rejected, an offer cannot be later acce pted. If an offeree atte mpts to acce pt the offer but in troduces new terms, the offeree is rejected the offer and is deemed to be making a coun ter offerSteve nson Jaques & Co v McLea nc)Lapse of timeAn of
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