Types of Contracts

Most contracts complete by performance - coffee, bus etc

However there are other ways for contracts to end - bus blowing up (frustration). Or a party can
breach the contract.
A gun to the head duress - invalid contract. !ontracts are based on consent.
"here are also illegal contracts.
A contract is a legally enforceable agreement. #f one cannot enforce a promise, it$s not a contract.
"here are written and verbal contracts.
An offer is a clear and unambiguous statement of the terms upon which
%ome things are implicit in contracts.
&here the contract is formed is significant - which country$s law applies to it'
(ifferent "ypes
)ilateral contract - &hen both parties have to perform mutual duties in the future.
*nilateral contract - One of the parties will have had already given something.
!arbolic %mo+e )all !o.
http,,www.e-lawresources.co.u+,!arlill-v-!arbolic-%mo+e-)all-!o.php
http,,www.bailii.org,ew,cases,-&!A,!iv,./01,..html
"100 reward will be paid by the Carbolic Smoke Ball Company to any person who contracts the
iufluenza after having used the ball three times daily for two weeks according to the printed
directions supplied with each ball."
LORD JUSTICE LINDLEY:What is reasonable time? You have to ask a pharmacist and
physician how long it would take for the ingredients effects to wear off.
nudum pactum - that there is no consideration? (Argued)
No. The advertisers get out of the use an advantage (the effects of the ball) which is enough to
constitute a consideration.
LORD JUSTICE BOWEN: It was intended to be issued to the public and to be read by the public.
How would an ordinary person reading this document construe it?
Does the protection go on forever having stopped using the ball (Argued)? No. I think the immunity
is to last during the use of the ball. The disease here was contracted during the use of the carbolic
smoke ball.
The extravagance of the promises (of 100) is no reason in law why a person should not be bound
by them.
2ou can$t ma+e a contract with the world (Argued).. 2es you can. Although the offer is made to the
world, the contract is made with that limited portion of the public who come forward and perform
the condition on the faith of the advertisement.
Nudum pactum (argued)? it is consideration enough that the plaintiff took the trouble of using the
smoke ball. Also, the defendants received a benefit from this user, for the use of the smoke ball was
contemplated by the defendants as being indirectly a benefit to them, because the use of the smoke
balls would promote their sale.
EXAMPLE: Im selling a cup of coffee for at least 50c. Although there is only one cup of coffee,
there can be more than one contracts. 10 people could give me at least 50c, therefore I have 10
contracts.
-You can draft a contract to do anything you want, within reason, add any terms, eg. I will sell this
coffee for the first person that does x, y and z.
Invitation to treat - a statement made without intending a contract to result if the other party
indicates his consent. THIS IS NOT A CONTRACT.
It generally involves one party inviting another to make an offer.
Cup of coffee: I want to sell this coffee, I plan to sell it for 50c, Ill hand it over immediately, if
youre interested in it, and happy to give me 50c. Thats ok.
-The offeror is NOT willing to contract. Here its actually the person who buys it who makes the
offer.
Invitation to treat - if youre willing to make an offer, here are the terms that Im willing to sell
under.
Advertisements are usually invitations to treat.
British Case: Pharmaceutical Society of Great Britain v Boots Cash Chemists
Court said: When you saw the sign stating the products price, it was an invitation to treat. It wasnt
offering the product, it was inviting you to pay. (If you are willing to pay the set price, you are
likely to be sold the product).
Irish Binding Case: Minister of Industry and Commerce v Pim [1966] IR 154
Putting a coat in a window and displaying the price is not an offer. Its an invitation to treat.
Goods available for sale online - this is not an offer either.