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Contract: Formation

  • 7 subtopics
  • 21 things to know
  • A2 Units 3 and 4
  • Law of Contract, one of three A2 areas of which two are studied

What Contract: Formation covers

Contract: Formation is examined in A2 Units 3 and 4 — Contract Law, one of three areas of which a student studies two. Unit 3 applies these rules to a scenario and Unit 4 evaluates them.. It covers offer and invitation to treat, acceptance, counter-offers and the ending of an offer, consideration and existing duties, payment of less than the debt, and promissory estoppel, intention to create legal relations, privity of contract and the Contracts (Rights of Third Parties) Act 1999 and evaluating the rules of agreement and consideration.

Where it is assessed

A2 Units 3 and 4

the law of contract — one of three areas of which two are studied, applied in one paper and evaluated in the other.

Check the WJEC specification ↗

The 7 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

State the rule about past consideration and the case that illustrates it.

Key term

Is the effect of promissory estoppel to suspend or to extinguish the promisor's rights?

Key term

What did Simpkins v Pays (1955) decide about a shared competition entry?

Key term

State the doctrine of privity of contract.

Key term

How must a third party be identified if they are to enforce a term under the Act of 1999?

Key term

What restriction does section 2 of the Contracts (Rights of Third Parties) Act 1999 place on the contracting parties?

Evaluation

Explain the criticism of the distinction between an offer and an invitation to treat drawn in Fisher v Bell (1961).

Key term

State the case in favour of retaining the postal rule.

Evaluation

Explain the criticism that the doctrine of consideration defeats the parties' intentions.

Key term

Distinguish an offer from an invitation to treat.

Numbers

How may a contract be accepted by conduct?

Key term

What was the significance of the company depositing one thousand pounds with its bankers in Carlill v Carbolic Smoke Ball Co (1893)?

Key term

State the postal rule established in Adams v Lindsell (1818).

Key term

Distinguish executory consideration from executed consideration.

Key term

State the rule in Pinnel's Case (1602).

Key term

Why was Merritt v Merritt (1970) decided differently from Balfour v Balfour?

Key term

What did Fisher v Bell (1961) decide about goods displayed in a shop window?

Key term

State three conditions that must be satisfied before the postal rule can apply.

Key term

What exception to the past consideration rule comes from Lampleigh v Braithwait (1615)?

Key term

What three exceptions to the rule in Pinnel's Case were recognised at common law?

Key term

What did Edwards v Skyways (1964) decide about a payment described as ex gratia?

Take Contract: Formation further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Executed consideration vs Executory consideration

    Executed consideration: an act already carried out in exchange for the other party's promise. Executory consideration: a promise still to be performed when the agreement is made.

  • Past consideration vs Present consideration

    Past consideration: an act finished before any promise was made, and supports nothing. Present consideration: it is given in exchange for that promise and makes it enforceable.

  • Promissory estoppel vs Consideration

    Promissory estoppel: preventing a party going back on a promise that has been relied on, and can only be used defensively. Consideration: the value given in exchange that makes a promise enforceable in the first place.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    Define an offer in the law of contract.

    Model answer

    An offer is a definite statement of terms by which the offeror indicates a willingness to be bound as soon as those terms are accepted by the person to whom the statement is addressed.

  2. 2

    Distinguish an offer from an invitation to treat.

    Model answer

    An offer can be turned into a binding contract by acceptance alone, whereas an invitation to treat is only an indication that a person is willing to receive proposals, which that person may then accept or refuse.

  3. 3

    What did Partridge v Crittenden (1968) decide about advertisements?

    Model answer

    It decided that a newspaper advertisement of goods for sale is normally an invitation to treat and not an offer, because the advertiser cannot be taken to promise to supply everyone who replies.

  4. 4

    What did Carlill v Carbolic Smoke Ball Co (1893) decide about advertising a reward?

    Model answer

    It decided that an advertisement promising a reward to anyone who used the product as directed and still caught influenza was a unilateral offer made to the whole world, which was accepted by performing the stated conditions.

  5. 5

    Why did the argument that Mrs Carlill had never communicated her acceptance fail?

    Model answer

    The court held that in a unilateral offer of this kind the offeror impliedly waives the need to notify acceptance, because performance of the conditions is itself the acceptance.

  6. 6

    What was the significance of the company depositing one thousand pounds with its bankers in Carlill v Carbolic Smoke Ball Co (1893)?

    Model answer

    The deposit showed that the promise was seriously meant rather than mere advertising puff, which established the intention to be legally bound.

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Contract: Formation revision questions

What does Contract: Formation cover in WJEC A-Level Law?
7 subtopics: offer and invitation to treat, acceptance, counter-offers and the ending of an offer, consideration and existing duties, payment of less than the debt, and promissory estoppel, intention to create legal relations, privity of contract and the contracts (rights of third parties) act 1999 and evaluating the rules of agreement and consideration. Each one has its own page with questions and model answers.
How is Contract: Formation organised?
By the WJEC 603-1978-1 specification, subtopic by subtopic, so it matches the order you are taught it in.

Every question in Contract: Formation, on a schedule.

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