Contract Law

What Makes a Valid Contract?

Forms of Agreement

Every time you buy or sell something, this is a contract in action. If buying over the counter, by taking an item of stock to the counter, the customer is making an offer to buy, and the taking of payment is the seller’s acceptance of that offer. In Pharmaceutical Society of Great Britain v Boots Cash Chemists,[1] a pharmacy in 1950’s Britain came up with the super-radical idea of offering some of their merchandise in shelves for customers to select independently as in a normal shop. The Pharmaceutical Society did not like this and sued...

 

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Effects of Conduct

Contracts can be implied by conduct. If two parties engage in a course of conduct where they both do something for each other, a contract implied by conduct emerges from their commitments to ongoing cooperation...

 

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Advertising

Contracts are distinguished from what lawyers call Invitations to Treat. These include advertisements and display of goods for sale (as in Boots Cash, above).

 

Without this distinction, every advertisement and every display of products would constitute an offer of a contract and any action merely looking like acceptance by the customer would bind the seller and customer...

 

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[1]Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Limited [1953] 1 QB 401.