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Common Law Reasoning Essay
Common Law Reasoning Essay
There are five principal methods when one wants to terminate an offer. The
first is an offer may be revoked before it is accepted. Second, an offer can be
cancelled if the offeree rejects it. This came when there was a counter-offer made by
an offeree in Hyde v Wrench. Thirdly, An offer may be terminated due to the passage
of time. An offer with no time limit is assumed to be valid for a reasonable period of
time. In fact, Alvin did not state the time limit of this offer. Fourth, an offer that is
stated to expire if a specific event occurs cannot be accepted after the event has
occurred. Lastly, the offer will be terminated by the offeror's death.
(a) Betty had no idea about the offer made by Alvin. She accidentally found it
and returned it to Alvin. The general rule of accepting an unilateral offer is the
offeree must have the idea of this offer in one’s mind. As if there is no offer in one’s
mind, they can’t accept an offer and form a contract. In Gibbons v Proctor, the
offeree was aware of the offer just before the information that was needed by the
offeror. Hence, he was entitled to claim the reward. In R v Clarke, Clarke provided
evidence to clear himself, not to claim for reward. McMillan Cj mentioned that
Clarke can’t form a contract when he did not intend to act as a offeree and enter a
contract. It is the same when one does not know about the offer or forgetting it. In
contrast, Denman, c.J stated that as long as one satisfied the terms of an offer, they
will be rewarded in Williams v Carwardine. The same in Ewan McKendrick, he
supported that provided the offeror gets what he wants, the offeree will be
awarded. According to the cases above, she did not have any motive to enter a
contract. She would not form a contract with Alvin and get the reward. On the other
hand, Betty would be entitled to the claim if only the court adopts the argument by
Ewan McKendrick. In Conclusion, Betty will be less likely to claim for the rewards as
she did not know about the offer. Alvin does not need to pay him.
(b) Chad was not aware of the revocation on the office notice board. The
revocation can be claimed as insufficient as it was not completely the same method
when posted the offer as per Shuey v USA. The revocation should give the same
notoriety and prominence in the original advertisement. Chad can claim it was
insufficient to bring the revocation to him. He started to research on Tuesday. In
Great Northern Railway Co. v Witham, acceptance requires the completion of an act.
This idea had changed as Sir Frederick Pollock said that acceptance not started when
completion of the act, but when the starting of an act. The general rule in Payne v
Cave, it would be unjust to withdraw the offer after the offeree has begun an act. In
Errington v Errington affirmed that when performance has started, it is too late to
revoke the offer. In Daulia v Four Millbank Nominees, the court upheld that the
offeror has an implied obligation not to stop him from finishing his part of the
performance. Furthermore, the act of Chad finding the laptop in a second-hand sale
may regard him as providing the information of Alvin’s laptop. On the facts, Chad
would be entitled to claim the rewards as he had done all the acts required by Alvin
and the revocation on the board was not valid to him. Alvin should pay him.
(c) Diya received the withdrawal notice from Freddie on Thursday. Revocation
may occur through a third party that is trustworthy. In Dickinson v Dodds, the court
held that a message from the defendant via the third party to the claimants was
valid. Hence, there is no offer by Alvin anymore. The revocation is effective to Diya
even if Diya found his laptop. She is unable to form a contract with him. Diya
returned Alvin’s laptop on Friday’s morning. This act should not be seen to be valid
in a contract as the offer had already been revoked. Alvin does not need to pay her.
(d) Evan got the laptop on Tuesday’s morning and Alvin shouted at him that he
wanted to revoke the offer. This revocation had come too late as Evan had already
completed Alvin’s required act. In Great Northern Railway Co. v Witham, acceptance
requires the completion of an act. This idea had changed as Sir Frederick Pollock said
that acceptance not started when completion of the act, but when the starting of an
act. The general rule in Payne v Cave , it would be unjust to withdraw the offer after
the offeree has begun an act. In Errington v Errington affirmed that when
performance has started, it is too late to revoke the offer. In Daulia v Four Millbank,
the court upheld that the offeror has an implied obligation not to stop him from
finishing his part of the performance. It would be unfair for him when he is about to
complete the whole act required. As well as Evan had completed the act, the
contract is valid. Alvin should not stop him from doing his act. He can’t revoke a
contract when he had already seen that Evan has nearly completed the act. Alvin
must pay him.
In conclusion, there is a valid and binding contract formed between Alvin and
Chad, Alvin and Evan. Alvin should pay both of them. On the other hand, There is no
contract between Alvin and Betty, Alvin and Diva as the revocation had brought to
their attention. They could not form a contract with Alvin.
(1450 words)
2b.
The general rule is that performance of an existing legal and contractual duty
by contract usually would not be a consideration.
Existing legal duty should not be a consideration when the promisee does
nothing beyond what he is already legally required to do. Promisor did not get any
benefit and the promisee did not get any detriment other than they were already
entitled. For example, Leeds United FC v West Yorkshire Police, there is a dispute
between the two parties over who is responsible for the protection for the vicinity of
land that is owned by Leeds United FC. The court in favour of the football club as
they mentioned that the protection was under the duty of police to safeguard
property, deter crime, and maintain the order in society. Hence, the football club
need not pay the police as this is their original duty.
In Collins v Godefroy, Collins sued because she was not paid as originally
promised by Godefroy. The court held that Collins would need to appear in court
formerly. Hence, her appearance should not be seen as a consideration. There is no
extra act that can be seen as consideration.
In Stilk v Myrick, before the storm, two sailors deserted the ship. It was
believed that the captain needed not to pay the sailor as promised. On account of,
they had only carried out their contractual obligations. The desertion of two sailors
on a ship was viewed as a normal occurrence, and the sailors did not go above and
beyond what was contractually agreed. Similarly in the Hartley v Ponsonby, 17 out of
37 sailors had deserted the ship. The court ruled that the sailors in Hartley had gone
above and beyond their contractual duties because the crew had shrunk to the point
where the rest of the voyage was more dangerous. As a result, the sailors had given
new consideration in exchange for the captain's promise to pay more. The
differences in two cases, the quantity of sailors who deserted the ship. Lots of
desertion of sailors may be seen as detriments to the sailors, in exchange, the
captain should have paid more to inspire the sailors.
In Williams v Roffey Bros, as the plaintiffs can' t keep up the progress, the
defendants offered the plaintiffs extra money if the work was completed on time
and the plaintiff agreed to a change in work arrangements. Despite the fact that the
plaintiffs were only doing what they were supposed to be doing, the defendant
would get extra benefits as the defendants would save money by avoiding the
penalty clause, the expense and difficulties of finding another contractor, as well as
the modified working conditions would also benefit defendants. Arrangements. All
these cases would only apply when there is no economic duress. For instance, In
Williams v Roffey Bros, the defendants reluctantly suggested the plaintiff. This is just
an exception to the performance of an existing legal duty by contract.
The progress of the court can be seen as it does not take much persuasion to
discover the existence of consideration. In Attrill v Dresdner Kleinwort Ltd, the court
would see that the promise by the company is a benefit to the employees in return
that the employees would not resign.
WRN Ltd v Ayris still stands for the performance of an existing legal contract
usually would not be a consideration. However, in certain circumstances, when one
party demands for extra service or stuff, the other party suffers detriment that is
beyond their original duty, performance of an existing legal and contractual duty can
suffice as consideration.
(752 word)
2c.
In Currie v Misa, the court defined consideration as "a good consideration in
the sense of the law may consist either of the same rights, interest, profit, or
benefits to one party or some forbearance, detriment, or loss of responsibility given
suffered or undergone by the others." Consideration is a crucial element in an
agreement. If there is an absence of consideration, there is no contract form. In
simple terms, it is based on the idea of reciprocity, that both parties in a contract
should exchange something in enforcing a promise. Parties should either obtain or
lose something. They use a promise to exchange another promise. Anything could
amount to consideration. There are two orthodox interpretations by Professor
Atiyah and Professor Trietel. Professor Atiyah states that the courts find the phrase
‘consideration’ as a reason to enforce a promise and create a contract. On the other
hand, Professor Trietel got a comprehension that was completely contrary to
Professor Atiyah’s. He holds that there is a clear theory of consideration in the
English law. The court would define the benefit and detriment in every case.
In Eastwood v Kenyon, the guardian used and even loaned money to raise the
girl up. The girl promised that she would pay it off when she had the ability to do it.
After years, the girl’s husband promised to help to pay it off but he went back on his
word. He refused to pay. The Court ruled in favour of the defendant. The claimant's
actions occurred prior to the husband and daughter's promises, and thus were out of
time. This was not a good consideration. As a result, there was no contract.
However, there are some exceptions stating that past consideration can be a
good consideration. The first requirement is the act must have been performed at
the plea of the promisor. In Lampleigh v Brathwait, Brathwait spent lots of money on
the way to do the act Lampleigh required. Lampleigh promised to pay Brathwait but
he did not. The plaintiff was successful in court. The plaintiff had acted on the
defendant's request so it is acceptable that the promise was made after the plaintiff
had taken action. Secondly, Both parties must have a reasonable expectation that
payment will be made. As per Re Casey's Patents, Casey must have assumed his work
would be compensated because the work was not merely a gesture of goodwill but
something a manager would have expected to be rewarded for. LAstly, the promise
must be legally binding.
In conclusion, past consideration is not a good consideration. As if past
consideration is a good consideration with no condition, one will take the benefit to
start a bad bargain by adding any condition. This will lead to injustice in the end.
(748 words)
3.
Where one party has not given genuine consent of their own free will,
vitiating factors prevent a contract from being fully binding. It may appear from this
that where one or both parties are mistaken about some aspect of the contract
being entered into, that party can't be said to be giving consent to it , as they believe
the consent is to something else. There are two types of mistake, which are bilateral
mistake and unilateral mistake. Furthermore, there are common mistake and mutual
mistake in bilateral mistake. Besides, the unilateral mistake can be devided into
three parts, which are mistake as to the identity of the party, mistake as to a
signature in document and the last, mistake as to the terms of the contract.
Steven visited Marcus to ask for the sale for a grand piano. Marcus selled
Steven the piano with a reduced price as Steven disguised a star in YouTube, Alberto.
This is a face to face contract between both parties. There is a unilateral mistake
made by Marcus here.
For contracts made at a distance or non face-to-face, the case would usually
be a mistake as to identity. As both parties can’t meet each other. They can purely
believe in what has been said by the other party. For instance, in Cundy v Lindsay,
Lindsay received an order by post thinking that she is selling handkerchiefs to
Blenkiron by a signing. Actually, the one who started that order was Blenkarn.
Blenkarn received it and sold it to Cundy. The court held that there is no contract
between Lindsay and Blekarn, they would have the right to take back the
handkerchiefs from Cundy. As Lindsay had intended to create a contract with
Blenkiron & Co, not Blenkarn. This would be a fundamental mistake in contract.
Hence, the contract voided.
In King’s Norton Metal v Edridge, Mr Wallis by using the name 'Hallam & Co'
ordered goods from the claimants by post by using a stationery depicting a large
factory. Court held that there is a contract as this is a mistake as to attributes. He
believed in the creditworthiness of a large factory, not the buyer itself. Therefore,
the contract is valid. The difference between both cases was that Cundy v Lindsay
simply had different customers in mind, King’s Norton Metal v Edridge had different
types of customers. Lastly, in Shogun Finance v Hudson, Shogun sold the car to the
finance company, then only sold it to the customer, which is a fraudster, lastly, the
fraudster sold it to Mr Hudson. It was a contract in the distance as the fraudster did
not meet the finance company. He got to pay a 10 percent deposit to get a car as he
impersonated Durlabh Patel on account of his credit rating. Shogun discovered this
and sued Mr Hudson to recuperate the car. The court held that it was a mistake as to
identity. The contract would be void. The fraudster had no good title to pass the
ownership to Mr Hudson.
In the later case, Phillips v Brooks, He was permitted to obtain the ring on
credit of Sir George without being obliged to pay for it. In the blink of an eye, the
rogue sold it to Brooks. As the evidence above, the ring was sold on one’s credibility,
this would be a mistake as to attributes too. The same result in Lewis v Averay
applied.
Moreover, in Ingram v Little, the Ingrams sold their car by receiving a cheque
from a deceiver who impersonated P.Hutchinson after checking with his address.
They discover the fraud and meanwhile, their car has already been sold to Little. The
court accepted that there is no contract between them as the Imgrams intended to
bargain with P.Hutchinson not the deceiver. Ingrams were successfully retrieved
from Little. This is the only case where the court did not follow the presumption in a
face to face contract. Later, in Shogun Finance, the House of Lords ruled that this
case was decided incorrectly.
In Solle v Butcher, the defendant paid a higher rent than the maximum rent
stated in the Rent Act 1923. It was not sufficiently fundamental to avoid the contract
but Lord Denning introduced equity into the strict common law to reduce the
hardship that would be encountered by the claimant. However, the approach of
Lord Denning had been criticised in the case Great Peace Shipping v Tsavliris Salvage
(International) Ltd. There was a misunderstanding of the defendant in the distance
from the claimant's vessels. They refused to pay and cancelled the contract with the
claimant. The defendant argued that there was an erroneous mistake concerning the
fundamentals of contract. The court held that the claimant won as even though the
distance is far, but the performance of the contract was still possible. It was not a
sufficiently fundamental mistake that was radically different from the original
contract.
( 1483 words)