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Contract Law (Essential) by Suff, Marnah Suff, Nicholas Bourne

By Suff, Marnah Suff, Nicholas Bourne

Necessities are written to offer scholars an figuring out of the foundations of every topic. There are references to fresh circumstances, laws and educational articles.

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Contract Law (Essential)

Necessities are written to offer scholars an figuring out of the rules of every topic. There are references to contemporary circumstances, laws and educational articles.

Extra resources for Contract Law (Essential)

Sample text

In Mountford v Scott (1975), £1 was paid for an option to purchase a house, and this was found to be good consideration. In Chappell & Co v Nestle (1960), three wrappers from the defendant’s chocolate bars were found to be part of the consideration. However, in Lipkin Gorman v Karpnale Ltd (1992), it was held that gambling chips given by a gambling club to one of its members did not 18 CONSIDERATION AND INTENTION TO BE LEGALLY BOUND constitute consideration, but were merely ‘convenient mechanisms for facilitating gambling’.

The character of all terms is ascertainable at the moment the contract is concluded. Nothing that happens after its formation can change the status of a term. If the term is a condition then the parties will know that its breach allows the other party to terminate, eg where 41 ESSENTIAL CONTRACT LAW the term is designated a condition by legislation or by precedent or by the parties themselves. But there can still be uncertainty where the parties have to await the court’s decision on the nature of the term.

The court found that his signing the contract was consideration for this promise, thus creating a collateral contract. In Evans & Son Ltd v Andrea Merzario Ltd (1976) Lord Denning considered the oral statement to be a collateral contract. In Esso Petroleum v Mardon (1976), the court held that the statement by a representative of Esso with regard to the throughput of a petrol station was covered by an implied collateral warranty that the statement had been made with due care and skill. Acceptance by the court of a collateral contract is, however, rare.

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