Define Following Voidable Contract Terms Flashcards

Contract that never exists at any point in time. May have all required elements but is formed over something illegal and is unenforceable by the courts

Some vitiating element which means one party can choose to rescind and make it void or accept and make it valid. Void only from the time it is rescinded.

Valid from the beginning but cannot be enforced by at least one party, e.g. against a minor

One party has to perform if the first party performs, but the first party is under no obligation to do so, e.g. Holloway v AG

Expression of willingness to enter into a binding contractual relationship on certain terms as soon as they are accepted.

Asked how much for house and replied lowest price 900 opounds, said yes I'll take it. Was only answering secondary question and not whether would sell the house. Supplying info is not an offer, there must be an intention to enter into binding relations

CC sent letter asking if wanted to buy house but changed mind before negotiations finalised. Invitatio ad offerendum: invitation to make an offer or to treat (enter negotiations) is not an offer as there is no intention to be bound.

When determining if offer or mere invitation to treat, courts will look at 1) willingness to undertake legal liability on defined terms 2) sufficiently clear indication of those terms

As a general rule, ads are an invitation to treat as if were an offer, could be unlimited acceptances for a limited stock which could not make commercial sense

Offered $100 to anyone who got the flu after using their smoke balls. Valid offer and acceptance. An offer can be made to the world at large as contract will only be with small portion of public that accepts it. Puffery (outrageous offer that noone could reasonably believe) is not usually an offer, but is not always puff.

Goods displayed in pharmacy, only the pharmacist at the counter could sell prescription meds so offer made when takes to counter, cashier accepts- display of goods is only an invitation to treat.

Opening of an auction is invitation to treat, offer made by bidder and accepted with auctioneers hammer. If a bid was an acceptance, would be a contract on the first bid.

Advertised sale of machines "without reserve" but auctioneer withdrew the lot after the P's bid. 2 contract approach: 1) standard auction contract where ad is only an invitation to treat and bid an offer 2) procedural contract governing the way the parties would conduct dealings in pursuit of the primary contract. Breach of procedural: damages= difference between bid and true value elsewhere.

If no mention about reserve provisions, is a standard auction and the two contract approach does not apply.

Tenders for bridge construction, said would accept lowest conforming tender, but accepted a non conforming tender. As with auctions, two contract approach. Making an offer was acceptance of unilateral process contract and breached this by accepting non confomring tender.