Contracts issues and Ratios



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CONTRACTS-Issues-and-Ratios



CONTRACTS Issues and Ratios

LECTURE 2


Offer and invitation to Treat

Canadian Dyers Association Ltd. v. Burton

ISSUE
Whether a contract to sell the property had been made

RATIO
There can be no contract unless there can be found an Offer and Acceptance of that Offer.


The mere quotation of a price does not constitute an offer
Whether or not there is an offer will depend on the language used and the circumstances of the particular case
Courts can look to the conduct of the parties surrounding the offer. (but they did more)

Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern Ltd.)

ISSUE
Whether a contract completed once the customer took the item from shelf as was argued by the Society.
RATIO
The act of taking the item from the shelf does not amount to acceptance of an offer to sell because the display of the item with a price is merely an invitation to treat.
Taking something off a shelf is not acceptance but an invitation to treat

Carlill v. Carbolic Smoke Ball Co.

ISSUE
How would an ordinary person reading this document construe it?
RATIO
Some ads can constitute offers where there is an offer to the world at large, which is accepted by an act carried out by the Offeree in a mode required by the offeror.
A unilateral contract is a contract in which there is a promise only on one side, the consideration for which is not a return promise, but rather the doing of some act.

Goldthorpe v. Logan

ISSUE
Was there a contract between the Defendant Logan and the Plaintiff Goldthorpe?
RATIO
The unilateral contract provides a technique to insure the enforcement of promises made to the public at large.
It does not matter that the promise was extravagant or recckless

R. v. Ron Engineering & Construction (Eastern) Ltd

ISSUE
Was the contractor entitled to withdraw their tender?
Can the contractor have its deposit back?
RATIO
A tender invitation and a tender bid are seen as being a unilateral contract that is brought into existence immediately on the submission of the bid. This contract is known as Contract A.
Contract B, which sets out the terms and conditions of the project, is entered into subsequent to the formation of Contract A.
Unsuccessful bidders still have Contract A with the owner, so if they were improperly not chosen as successful bid as per the terms of the Invitation to Tender, then they have recourse for breach of contract.

M.J.B. Enterprises Ltd. v Defence Construction (1951) Ltd.

ISSUE
Whether the inclusion of a “privilege clause” in the tender documents allows the owner to disregard the lowest bid in favour of any other tender, including a non-compliant one
RATIO

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