Contract law by Stefan Fafinski; Emily Finch

By Stefan Fafinski; Emily Finch

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Legal principle William Tweddle’s claim failed. Even though he was named in the agreement, he had not himself given consideration for the agreement. 1. 1 Consideration is the promise to pay money to William Tweddle in return for the same promise John Tweddle William Tweddle Contractual agreement William Guy William Tweddle gave no consideration and cannot enforce the contract REVISION NOTE William Tweddle was also unable to enforce the contract due to the common law rule on privity of contract.

The father died after some repayments had been made. Other family members claimed possession of the house, title to which remained in the name of the father. Their claim failed. Legal principle The contract was a unilateral contract, since it involved an act (payment of the mortgage) in return for a promise (to transfer the house once all the payments had been made). Once performance had commenced (by the mortgage repayments being made) then the father’s promise could not be revoked. However, Lord Denning also stated that the promise would not be binding if the act was left incomplete and unperformed.

M. m. m. m. m. QXP:M00_FAFI5820_02_SE_C00 2/7/09 15:28 Page 30 1 AGREEMENT AND CONTRACTUAL INTENTION Make your answer stand out: ❚ Although the question is concerned primarily with offer and acceptance, remember that these are only two of the essential elements of a contract. Although intention to create legal relations and consideration are unproblematic in this instance, a thorough answer will consider them both briefly. Since this is a commercial arrangement (Tom is a vintage car dealer) then the presumption that there is intention to create legal relations arises (there is nothing to suggest that it has been rebutted: Rose & Frank Co.

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