1 Contents 1 Introduction to Private Law............................................................................................................................ 8 1.1 The place of contract within private law .................................................................................................. 8 1.2 TORT ..................................................................................................................................................... 8 1.2.1 Torts committed in a contractual context......................................................................................... 8 1.2.2 Concurrent liability in contract and tort ........................................................................................... 8 1.2.3 Tort and contract compared:........................................................................................................... 8 1.3 UNJUST ENRICHMENT ............................................................................................................................ 9 1.4 EQUITY .................................................................................................................................................. 9 1.4.1 The development of equity ............................................................................................................. 9 1.4.2 Equitable obligations .................................................................................................................... 10 1.4.3 Equitable remedies in contract ...................................................................................................... 10 1.5 STATUTORY OBLIGATIONS AND REGULATION ........................................................................................ 10 1.5.1 Misleading or deceptive conduct ................................................................................................... 10 1.5.2 Unconscionable conduct ............................................................................................................... 10 1.5.3 Unfair contract terms.................................................................................................................... 10 1.5.4 Consumer guarantees ................................................................................................................... 10 2 Formation of Contract: Offer........................................................................................................................ 11 2.1 Offer ................................................................................................................................................... 11 2.2 Offers distinguished from invitations to treat ........................................................................................ 14 2.3 Revocation of an offer.......................................................................................................................... 14 2.4 Unilateral contracts ............................................................................................................................. 15 3 Agreement: Acceptance............................................................................................................................... 16 3.1 Conduct constituting an acceptance...................................................................................................... 16 3.2 Consciousness of the offer - Relationship between the offer and acceptance .......................................... 17 3.3 Relationship between the offer and acceptance .................................................................................... 17 3.4 Communication of acceptance.............................................................................................................. 17 3.4.1 General rule ................................................................................................................................. 17 3.4.2 The postal rule: ............................................................................................................................ 18 3.4.3 Scope of the postal rule ................................................................................................................ 18 3.4.4 Modern electronic communications .............................................................................................. 19 3.4.5 Silence as acceptance ................................................................................................................... 19 3.4.6 Acceptance inferred from conduct................................................................................................. 19 3.5 Correspondence between offer and acceptance .................................................................................... 21 3.5.1 The English approach .................................................................................................................... 21 2 3.6 A meeting of the minds ........................................................................................................................ 23 3.7 Non-contractual obligations ................................................................................................................. 23 4 Consideration (Introduction, Elements, Existing Legal Duty Rule & Exceptions) ............................................... 23 4.1 When is consideration required? .......................................................................................................... 23 4.2 Essential elements ............................................................................................................................... 23 4.2.1 The benefit/detriment requirement .............................................................................................. 23 4.2.2 The “bargain” requirement ........................................................................................................... 23 4.2.3 Bargains and conditional gifts........................................................................................................ 24 4.2.4 Bargains and reliance .................................................................................................................... 24 4.3 Consideration must move from the promisee ........................................................................................ 26 4.4 Adequacy v Sufficiency of consideration................................................................................................ 26 4.5 Past Consideration ............................................................................................................................... 27 4.5.1 The general rule ........................................................................................................................... 27 4.5.2 Promise to pay for past services .................................................................................................... 28 4.6 Discretion as to performance................................................................................................................ 28 4.7 The existing legal duty rule ................................................................................................................... 28 4.7.1 The general rule ........................................................................................................................... 28 4.7.2 Part payment of a debt ................................................................................................................. 28 4.8 Exceptions to the existing legal duty rule:.............................................................................................. 29 4.8.1 Fresh Consideration ...................................................................................................................... 29 4.8.2 Practical benefit ........................................................................................................................... 29 4.8.3 Promise made to third parties ....................................................................................................... 32 4.8.4 Bona fide compromise .................................................................................................................. 33 4.8.5 Termination and replacement ....................................................................................................... 34 4.9 Policy Discussions ................................................................................................................................ 34 4.9.1 Criticism of the doctrine of consideration....................................................................................... 34 4.9.2 The function of consideration........................................................................................................ 34 5 Intent to Create Legal Relations ................................................................................................................... 35 5.1 The objective approach ........................................................................................................................ 35 5.2 Presumptions ...................................................................................................................................... 35 5.3 Commercial transactions ...................................................................................................................... 36 5.3.1 Presumption of legal enforceability 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