法律基本案例(英文版)

InvitationtoTreat,Offer,Acceptance&RevocationAaron’sCustomCakesisapopularbakeryopentothepublic. Everydayfreshpastriesandcakesaredisplayedforsaleinthestorefrontwindowsandindisplaycasesinsidetheshop. Customerscanalsoplacespecialordersforthemedcakesandpastries.Attractedbythewindowdisplayofchocolatecupcakesoffered‘onsale’for$5eachor$50foradozen,BillwalkedintoAaron’sCustomCakesonTuesdaymorningandcommencedthefollowingdialoguewithCindy,theshopmanager:Aaron–Goodmorning,thosecakeslookdelicious. IthinkI’dliketobuyadozenofthemiftheytasteasgoodastheylook.Cindy–Thesearethebestcupcakesontheplanet! Wouldyouliketotryasample?Aaron–Yes,please!(Aarontastesaportionofoneofthechocolatecupcakes)Aaron–They’redelicious! Cindy–Thankyousir,so,that’llbeonly$50foronedozen.Aaron–Thisissogreat,insteadofcupcakes,I’dratherhaveonebigcakeformyanniversarypartytomorrownight,canyoudothat?Cindy–Yeswecan,howmanypeopledoyouneedtoserve?Aaron–Weplantohaveasmallgatheringof5people,plusmyselfandmywife,foratotalofseven.Cindy–Thatshouldn’tbeaproblemthen. Foronly$200wecanbakeyouananniversarycakeusingthissamerecipeasforthecupcakes,largeenoughforsevenpeopletohaveaslice,andwecanalsoincludedecorativefrostingthatspells“HappyAnniversary”withyournameandyourwife’snameifyoulike.Aaron–Thatsoundsgreat,you’vegotadeal.Cindy–We’llneeda50%depositandyoucanpick-upthecaketomorrowafter1.Aaron–Doyoutakecreditcards?Cindy–Nosir,I’msorry,wedon’t.Aaron–Well,Icanbringyouthedepositlaterthisafternoon,around6,willthatbeok?Cindy–That’sfine,wecloseat7.Aaron– Thanks,I’llbebackbeforethen.Rule/relevantlaw:(a)IsDisplayaninvitationtotreatoranoffer?Themainandthefirstissueinthisquestionis“isdisplayaninvitationtotreatoranoffer?” Inthefollowingcases,itwasheldthat“Display”isjustandInvitationtoTreat,butnotanoffer.(i)In,awindowdisplayofaknifewithapricetaghasbeenheldasjustanInvitationtoTreatratherthananOffermadebytheshop.            (ii)Inthelandmarkcaseof,thedisplayofdrugontheshelvesofashopwasheldtobeanInvitationtoTreatonly(notanOffer).Thecustomerwhohaspickeditupwasmakinganoffertobuy.Thecashierdidnotacceptanypayment,thusnoofferhasbeenaccepted.Itwasheldthatthereisnocontract.(4marks)(NB:eithercasewillbefine)(b)DoesAaronintendtocreateanylegalrelationshipwiththeshop?Oneoftheelementsforformationofcontractisthatthereshouldbeintentiontocreatelegalrelationshipbybothparties.(1mark)(c)Aaronsaid”I’dratherhaveonebigcakeformyanniversarypartytomorrownight,canyoudothat?”Wasitanoffertobuyabigcake?Onecanrevokeanofferinnegotiationprocess.Theremustbeanofferfirst.Avalidoffermusthavecertaintyofterm,includingthemaincomponent“price”.(2mark)(d)IsAaron’sinquiryaboutusingcreditcardsforpayment,”Doyoutakecreditcards?”,acounter-offer?Anoffermustbefullyacceptedtoconstituteavalidacceptance.Anychangestoatermwouldbeacounteroffer,notanacceptance.In,achangeonthetermwasheldasacounteroffer,notanacceptance.   NegotiationonModeofPaymentcouldbeanegotiatingonconsideration,whichconstitutesaTermofcontract.Ifthistermhasnotbeenagreed,thereisnocontract.Thecommonlawisthatacounterofferhastheeffectofextinguishingthepreviousoffer.Onecannotreverttotheoriginalpositiontoaccepttheofferagain.(6mark,each2marks)(subtotalforlaw:13marks)AnalysisandApply: Theusualprocessinformationofcontractis1.Makeanoffer(withconsiderationproposed)2.acceptance(byagreementtoacceptfullythetermsofofferwithintentiontobebound,andconsideration,canbepaidatonce,asexecuted,orlater,asexecutory).(a)DisplayisaninvitationtoTreat(notanOffer)Theplacementofcupcakesinitsshopwindowsanddisplaycaseswithapostedpriceof$5foroneand$50for12isnotan‘offer’,itisaclassic“invitationtotreat”bythebakeryaccordingtothedecisionsaboveinand thelandmarkcaseof.Thecustomerwhohaspickedupandreadytopaywasheldasmakinganoffertobuy(notanacceptance).Sotherewouldbenocontractinthisscenario. (3marks)(b)Aaronintendstocreate alegalrelationshipwiththeshopOneoftheelementsforformationofcontractisthatthereshouldbeintentiontocreatelegalrelationshipbybothparties.Applyingtothefacts,whenAaronwalksin,heexpressesinterestandintenttoenterintoacontractandisreadytomakeanoffertobuy(whichalsoindicateshisintentiontocreatealegalrelationship). Whenhetastesthecake,thisisalsonotyetanoffertobuyyet,norisitacounteroffer,orconstitutestoanycontractbindingbothparties. (2marks)(c)Aaronsaid”I’dratherhaveonebigcakeformyanniversarypartytomorrownight,canyoudothat?”Itwasaninvitationtotreatonly(notanoffertobuyabigcake)AsAaronhasnotyetmadeanoffertobuyatthisstagewhenhesaiditisdelicious,thereisnoissueonrevocationofoffer.Avalidoffermusthavecertaintyofterm,includingthemaincomponent“price”. Applyingtothefact,Aarondidnotproposethepriceforthatbigcake,hisindicationwouldonlybeaninvitationtotreat.Itshouldnotbeconsideredasanoffertobuysincethemaincomponentsofaterm,price,hasnotbeenproposed.(3marks)(d)IsAaron’sinquiryaboutusingcreditcardsforpayment,”Doyoutakecreditcards?”,acounter-offer? In,itwasheldthatavalidacceptancemeanstheoffereewouldacceptfullythetermoffered.Achangeonthetermwasheldasacounteroffer,notanacceptance.Applyingthelawtothefacts,arguablyAarondidnotaccepttheshopmanager’soffertosellhimabigcakeat200withdepositof50%cashInstead,Aaronsaid“doyoutakecreditcard”,hewasmakingacounteroffer.Since:(i)NegotiationonModeofPaymentcouldbeanegotiatingonconsideration,whichconstitutesaTermofcontract.Ifthistermhasnotbeenagreed,thereisnocontract.(ii)anoffermustbefullyacceptedtoconstituteavalidacceptance,Aaronhasnotacceptedtheoffertosellat200with50%cashdeposit.Hemadenewtermofusingacreditcardforpayment.So,thisstatementisacounteroffer.Astheshopmanagersaid“Nosir,I’msorry,wedon’t.”,themanagerhasrejectedthecounterofferfromAarontobuyonebigcakewithsuchterm-tousecreditcardaspayment.Ifso,thereisnocontractatthisstageyet. (iii)Thecommonlawisthatacounterofferhastheeffectofextinguishingthe  previousoffer.Onecannotreverttotheoriginalpositiontoaccepttheofferagain.Applyingtothefacts,asAaron’sproposaltousecreditcardisacounteroffer,ithasextinguishedtheoriginalofferofShopmanagertosellat200with50%cashdeposit.ThefactthatAaronagreedtobringcashdepositlaterdoesnotconstituteanacceptanceofshopmanager’soriginaloffersinceonecannotreverttotheoriginalpositiontoaccepttheofferagain. Inshort,thereisnocontractyetatthisstage.Arguably,theproposaltobringcashdeposittobuyitisanewoffer,theshopmanagerresponded”That’sfine”,haseffectivelyconstitutedanacceptanceofAaron’snewoffer.Thereisacontract.Thefactthattheconsiderationhasnotbeenpaidyetisnotanissue,ithasbeenagreedanditisanexecutoryconsideration.Thecontracthasformedalreadyatthisstagesincethefourelementsofcontract- “offer”,“acceptance”,“intentiontocreatelegalrelationship”,andconsideration”-areinexistence.(4marks)(SubtotalforApply:12marks)Conclusion:Thereisacontractsincethefourelementsofcontract- “offer”,“acceptance”,“intentiontocreatelegalrelationship”,andconsideration”-areinexistence.ConsiderationPartIidentifytheissuePleaseindentifythemainissuesaroseinthecasePartIIApplythelawtoanalyzethefactIssueone:---thefact---therelevantlaws---apply---sub-conclusionIssuetwo:……PartIIIConclusionMaryshallmarryonDecember2013andshehasbookedPeterastheweddingplanneratanagreedpriceofHK$150,000.whenpaymentisdueonDecember2013.Duetocashflowdifficulty,PeterproactivelyapproachesMarytoofferdiscountandsuggestMarytopayHK$50,000instead.MarycomestoconclusionthatPeter’sdiscountistoogoodtoberejected.MarypaysHK$50,000onJune2013andPeterdeliverstheserviceasperscheduleDecember2013.Inviewofthegreatsavingsinweddingplanner,Maryhasspentextramoneyinupgradingabetterqualityredwinefortheweddingparty.PeterclaimsthebalanceofHK$100,000afterMary’smarriage.whetherpartpaymentcanbeoffullpaymentornot?whetherthedoctrineofpromissoryestoppelcanbeapplied?Issue1Partpaymentcanbeoffullpayment?Peterissufferingfromcashflowproblem.PeterpromisesMarythatshecanpayHK$50,000fortheweddingplannerserviceinsteadofHK$150,000.Inviewoftheattractivediscount,MaryhaspaidPeterHK$50,000inJune2013andPeterhasdeliveredtheweddingplannerserviceasperscheduleDecember2013.However,PeterclaimsthebalanceHK$100,000afterwards.(fact)Generalruleisthatpartpaymentisnotfullpayment.However,paymentof alessersummaydischargedthefulldebtissomeadditionalconsiderationisprovided.Thismaybesoifthepartpaymentismade:●Beforeitisoverdue●Bydifferentmeans●In adifferentplacetothatoriginallyspecifiedMaryhaspaidHK$50,000onJune2013insteadofDecember2013.MaryhasprovidednewconsiderationofearlypaymentforPeter’spromise.(applythelawtoanalyzethefact)Thus,partpaymentfromMaryisoffullpaymentaccordingly.(sub-conclusion)Issue2thedoctrineofpromissorystoppelTheequitabledoctrineofpromissoryestoppelcanprovideameansofmakingapromisebinding,evenwithoutconsideration.ItwasdevelopedfromLordDenning’sobiterstatement: "Inmyopinion,thetimehasnowcomeforthevalidityofsuchapromisetoberecognied.Thelogicalconsequence,nodoubtisthatapromisetoacceptasmallersumindischargeofalargersum,ifactedupon,isbindingnotwithstandingtheabsenceofconsideration“CentralLondonPropertyTrustvHighTreesHouseLtd.1947(law)Inthiscase,MaryInviewofthegreatsavingsinweddingplannerbill,Maryhasspentextramoneyinupgradingabetterqualityredwinefortheweddingparty.PeterpromisestoreceivediscountpriceofHK$50,000.InrelianceonPeter’spromise,MaryhaspaidearlierinJune2013insteadofDecember2013.Further,Maryhasspentextramoneytoupgradebetterqualityredwinefortheweddingpartytoherdetriment.(applylawstoanalyzethecase)Therefore,PeterhasbeenestoppedfromrenegingonthepromiseuponwhichMaryhasrelieduponaslongasthecircumstanceswhichledtothatpromisecontinued.(sub-conclusion)Conclusion:PartpaymentisfullpaymentasMaryhasprovidednewconsiderationonPeter’spromise.Further,MarycanrelyonpromissoryestoppedtodefendherselfonPeter’sclaim.IntentiontoCreateLegalIntention•PartIidentifytheissuePleaseindentifythemainissuesaroseinthecase•PartIIApplythelawtoanalyzethefactIssueone:---thefact---therelevantlaws---apply---sub-conclusionIssuetwo:……•PartIIIConclusion•Yvonne operatedasmallrestaurantinYuenLong.•JohnwasaregularcustomerandtheProjectManagerofalargeconstructionprojectinthearea.•JohncametoknowYvonnesincetwoyearsagoandtheygotonverywell.• Yvonneadored Johnverymuchandlookedforwardtoseeinghimeverymorningwhenhecameforbreakfast.• OnemorningtheywerechattingabouttheMarkSixJackpottobedrawnonthefollowingTuesdayinthepresenceofafewcustomers.•ItwasagreedthattheyshouldinvestinamarksixsyndicatecomprisingofYvonne,JohnandHelen,whowasJohn’sPersonalAssistant.•EachpersonwouldcontributeHK$100.00perweekandYvonnewoulddecidethenumberstobeentered.Yvonnewouldretaintheticket.•TheydidnotwinuntilsixmonthslaterwhentheywonaFirstPrice.BythattimeYvonnehadalsodiscoveredthatHelenandJohnwereinloveandtheywouldsoongetmarried.• Yvonnewasquiteupsetandthereforedecidedtokeepthewholeofthewinnings.• Yvonneclaimedthattherewasnowrittenrecordoftheagreementandshecouldnotnowrememberthetermsofagreement.Yvonnesaidthatsinceshewastheonewhoselectedthewinningnumbersandalsopurchasedthewinningticketsheshouldhave90percentofthewinningsandHelenandJohncouldhavethebalanceasagiftfromherfortheirwedding.•HelenwassoangrywithYvonnethatsheassaultedYvonne.Helenwasprosecutedforcommonassaultandwasfined.• Both HelenandJohnwerenothappytoacceptonlytenpercentofthewinnings,astheyconsideredthattheyhavethelegalrighttoshareinequalproportionasMaryinthejackpotwinnings.•AdviseHelenandJohn•Whethertherewasavalidcontract◆Whethertherewas anylegalintentiontoformanycontractualrelationship•WhatexactlyweretheTermsoftheContractespeciallyrelatingtothesharingofprofit◆Writtenagreement?◆Oralevidence◆Independentwitnesses•Issue1:Intentiontocreatelegalintentionvalidcontract?•(facts)HelenandJohnmetinasocialsetting.•(law)ThereisanpresumptioninCommonLawagainstanintentiontocreatelegalrelationsindomesticandsocialagreements(JonesvPadavatton (1969))unlessrebuttedbyadducingevidencetothecontrary.•(applyinglawtofacts)ItispresumedthatthecontractwasnotintendedtobemadebutHelenandJohncanshow thedegreeof“reliance”byshowingproofofpaymenttoYvonne.Thisprovestheseriousnessofthecommitment,henceintention.•(sub-conclusion)Itispossibletoprovetheagreementcomeswithnecessarylegalintention•Issue2:Thetermsofthecontract•(facts)Therewasnowrittenagreementsigned.Theyagreeditintherestaurantinfrontofothercustomers.•(law)intheabsenceofawrittenagreement,oralevidencecanbegiven.•(applyingfactstolaw)Thereareindependentwitnesseswhocantestifytotheformationoftheagreementandtheterms.•(sub-conclusion)Dependingontheevidenceofthewitnesses,astrongcasecanbebuiltforHelenandJohn’sclaim.Conclusion:Itislikelythatthecourtwillruleintheirfavorgiventheevidenceoftheirrelianceonthecontracttorebutthepresumptionandthetestimonyofthecustomersatthetimeoftheformation.Termsof ContractCondition,Warranty,InnominateTerm•AandBenteredintoacontract.InwhichAwastoprovideprivatelessonstoBeachmonthforthedurationof5yearsandafinaltrialassessmentonthelastdayofthelastmonth,i.e.31stMay2011beforeanimportantexaminationofB.•Bothtermsweredescribedas“condition”inthecontract.•ThereareacoupleofmonthswhereAdidnotprovidelesson.•AforgottoattendtheassessmentforBon31stMay.Aproposedtorescheduleitafewdayslater.•AdviseB.•Issue1:Isthetermformonthlylessonsaconditionorwarranty?•Issue2:Isthetermforfinalassessmentonspecificdateaconditionorwarranty?•Doestheuseofconditionmeansitisautomaticallyaconditionbylaw?•Whatisthetrueintentionofthepartiesinthecontract?•Whataretheeffectofthebreach?•Issue3:WhataretheremediesavailabletoB?Issue1:Isthetermformonthlylessonaconditionorwarranty?•(fact)Themissingofthelessonsisonlyacoupleoverdozens.•(law)Theuseoftheword“condition”doesnotmeanthetermisnecessarilyacondition.(SchulerAGvWickmanMachineToolSalesLtd)•(law)Atermisaconditionwhereeverybreachdeprivesthenon-breachingparty“substantiallyofthewholebenefit”intendedinthecontract.(HongKongFirShippingCoLtdvKawasakiKisenKaishaLtd)•(apply)TheintentionofthepartiesistohaveAhelpBimprovehisability.ItisunlikelythatthemissingofjustacouplelessonswillaffectB’soverallperformance.•(sub-conclusion)Thistermislikelytobefoundedasawarrantyinsteadofcondition.Issue2:Isthetermforfinalassessmentonspecificdateaconditionorwarranty?•(fact)Thedatetothefinaltrialhasbeenfixedaspartoftheconditionterm.ThepurposeofthisassessmentistoprepareforB’sexam.•(law)AtCommonLaw,timeisusuallytreatedasoftheessenceofthecontract.•(apply)Thetimetoperformisincorporatedintothecontractstressingitspurposeandimportance.•(sub-conclusion)Itislikelythatthecourtwillfindthisasacondition.•Issue3:WhatisBentitledtoforremedies?•(fact)Abreachedaconditionandawarranty.•(law)Thebreachofaconditionentitlesthenon-breachingpartytoterminatethecontractandclaimfordamageswhilethebreachofwarrantyentitlesittodamagesonly.•(applyandsub-conclusion)Bcansueforterminationofcontractfromthebreachingofthesecondtermandclaimfordamagesforthebreachingofboth.•Conclusion:•Thecourtislikelytofindthefirstbreachaswarrantyandthesecondbeach(inrelationtotimeofperformance)asconditionsincetheeffectofthebreachwerenotstipulated.•Thecourttakesintoaccounttheseriousnessofthebreachaswellastheintentionofthepartieswhencontractinginordertoprotectthecertaintyofcontractjustly. •BisentitledtoterminatingthecontractforA’sfailingtogivethefinalassessmentintime.•Bisalsoentitledtodamagesfortheuntimelyassessmentaswellasthecouplemonthlylessonsthatwerenotprovided.ExemptionclauseWhatarethemainlegalissues aroseinthecase.Inanotherword,inordertoanswerthequestionincase,whataretheprerequisiteissuesthatneedtobeclarified.Pleaseidentifythelegalissuesprecisely.Rule1---Step1relevantlaw(citethecaseorillustratetheordinancedirectly)---Step2applytheabovelawtoanalyzethecurrentfactRule2Rule3......ThispartshouldincludeanswersforallthelegalissuesButpleasenomorelogicalexplanationTeddydrovehiscartothecarparkentrance.Hepressedthebuttonoftheautomaticticketmachine,theelectricalfenceliftedupandhedroveinsidethecarpark. ItwasthesecondtimeTeddyvisitedthiscarparkandinsidethecarparktherewasaverysmallwoodensignattachedatahiddenspot.Onthewoodensigntherearesmallwordsstatedthat“Thecarparkcompanywillnotberesponsibleforanyaccidentoccurredinthecarpark”Teddyparkedhiscarinthecarparkforthreehours,theceilingofthecarparksuddenlycollapsedandtheconcretedestroyedTeddy’scar.Thereasonforthecollapsedwasthatthecarparkcompanyneglectedtomaintainthebuildingproperly. WhenTeddywentinsidethecarpark,adebriswasfallenfromtheceilingwhichhitTeddy’sandbrokehisskull. Teddyhiredalawyertoinstitutealawsuitagainstthecarparkcompanytosuefordamages.Ifthecarparkcompanywishedtorelyontheexemptionclausetoexcludeitsliabilities,howwouldhislawyerchallengeitsvalidity?Discuss.Whethertheexemptionclausehadincorporatedinthecontract?Whethertheexemptionclausevalid?Therequirementsforexemptionclausescontainedinunsigneddocument(thefirstissue)1.Sufficientnoticemustbegiven–thepartywhowishestorelyonanexemptionclausemusttakereasonablestepstobringittotheattentionofthecustomerthatthereareexemptionclausesinthedocument.(law)Whenadocument(woodensign)containedexemptionclausewhichwasunsignedbytheothercontractingparty(Teddy)butmerelydeliveredtohim,thelawrequiredtheexemptionclausemakertogivesufficientandreasonablenoticetotheotherpartyastotheexistenceoftheexemptionclauses.However,theactualcontentoftheexemptionclausedoesnothavetoconveytoTeddy.(applythelawtoanalyzethefact)2.Thegreatertheexemption,thegreaterthedegreeofnoticerequired.Thorntonv.ShoeLaneParkingLtd.(1971)(law)InTeddy’scase,thedegreeofnoticewasinsufficientsincetheexemptionclausewasintendedtoexemptalldamagesoccurredinsidethecarparkwhilethesizeofthewoodensignwastoosmalltodrawthecustomer’sattention.(applythelawtoanalyzethefact)3.Exemptionclausemustbecontainedinthecontract(law)Thewoodensignmustbeanintegralpartofthecontractinordertobeeffective.InVictoriaLaundry(Windsor)Ltdv.NewmanIndustriesLtd(1949),thecourtheldanreceiptisnotanintegralpartofthecontractbutmerelyanacknowledgementofreceiptthereforeitdoesnothaveanycontractualeffect.(applythelawtoanalyzethefact)4.Theexemptionclausemustbegivenbeforethecontractisconcluded(law)InThorntonv.ShoeLaneParkingLtd(1971)whentheexemptionclausewasstatedinthesigndisplayedinsidetheautomaticcarpark.Thecourtheldcontractisconcludedwhenthedrivertooktheticketfromtheautomaticticketmachineattheentrancegatesincetherewasnoturningback.Whenthedriversawthesignitwastoolatetobecomepartofthecontract.ApplythisprincipleinTeddy’scase,thecontractisconcludedwhenhiscardroveinsidethecarpark. Undercommonlawthewoodensignwastoolatetoincorporateintothemaincontractsincethewoodensignwasdisplayedinsidethecarparkandthecontracthadalreadybeenconcluded.However,accordingtothecaseOlleyv.MarlboroughCourt(1949),itwasTeddy’ssecondvisitifhealreadysawthewoodensigninthepreviousoccasionthentheexemptionclausemaybeabletoincorporateintothecontractprovidedthatthedegreeofnoticewasenoughtodrawTeddy’sattention.(applythelawtoanalyzethefact)Eveniftheexemptionclausewasincorporatedinthecontract,thevalidityoftheexemptionclausewouldberestrictedbytheControlofExemptionClausesOrdinance.(thesecondissue)Inrelationtotheskullinjuries,s.7(1)oftheControlofExemptionClausesOrdinancehadspecifiedthatnoinjuriesordeathcanbeexcludedbyreferenceofexemptionclause.(law)Therefore,Teddy’sskullinjurycouldnotbeexemptedevenifallthecommonlawrequirementsaresatisfied.(applythelawtoanalyzethefact)InrelationtothedamageonTeddy’scar,s.7(2)oftheControlofExemptionClauseOrdinancehadspecifiedthattheexemptionclauseshavetosatisfytherequirementofreasonablenessinordertobevalid.(law)Therefore,inrelationtoTeddy’scardamage,whetheritisreasonablefortheCarParkCompanytoexemptfromitsliability,thecourthastodetermineitsreasonablenessonthefactsofthecase.Thecourthastoseewhethersuchexemptionisreasonablenecessarytoprotectthecarpark’slegitimateinterestunderthecircumstance.(applythelawtoanalyzethefact)Theexemptionclausecontainedinthewoodensignmaynotbeabletoincorporateintothecontractbecausethedegreeofnoticewasinsufficient.(thefirstissue)Eveniftheexemption