attachments: write your exam code here: return this exam ......carlill v carbolic smoke ball co. 28...

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Write Your Exam Code Here: ________________ Return this exam question paper to your invigilator at the end of the exam before you leave the classroom. Attachments: 1. Course Syllabus (5 pages) 2. Case Chart (10 pages) THIS EXAMINATION CONSISTS OF 3 PAGES (INCLUDING THIS PAGE) PLEASE ENSURE THAT YOU HAVE A COMPLETE PAPER THE UNIVERSITY OF BRITISH COLUMBIA PETER A ALLARD SCHOOL OF LAW FALL EXAMINATION- DECEMBER 2019 LAW 211.04 Contract Law Professor Ljiljana Biukovic TOTAL MARKS: 100 TIME ALLOWED: 1 HOUR & 20 MINUTES (INCLUDING READING TIME) ******************** NOTE: 1. This is a CLOSED BOOK examination. You may refer ONLY to the clean copy of the case chart and the syllabus as provided to you in the classroom before the exam. NO OTHER BOOKS OR REFERENCE MATERIALS, WHETHER ORIGINALS OR COPIES, MAY BE USED. 2. Deal with the question on the basis of materials and topics we have covered in Contract Law classes during this term. Do not concern yourself with cases that are not on the case chart. 3. You may refer to cases in the short form (for example, Carlill when you refer to the case Carlill v Carbolic Smoke). 4. If you think that additional facts are necessary to answer a question fully, please state those facts and explain why they are necessary. THIS EXAMINATION CONSISTS OF 1 QUESTION.

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  • Write Your Exam Code Here: ________________ Return this exam question paper to your invigilator at the end of the exam before you leave the classroom.

    Attachments: 1. Course Syllabus (5 pages) 2. Case Chart (10 pages)

    THIS EXAMINATION CONSISTS OF 3 PAGES (INCLUDING THIS PAGE) PLEASE ENSURE THAT YOU HAVE A COMPLETE PAPER

    THE UNIVERSITY OF BRITISH COLUMBIA

    PETER A ALLARD SCHOOL OF LAW

    FALL EXAMINATION- DECEMBER 2019

    LAW 211.04 Contract Law

    Professor Ljiljana Biukovic

    TOTAL MARKS: 100

    TIME ALLOWED: 1 HOUR & 20 MINUTES (INCLUDING READING TIME)

    ******************** NOTE:

    1. This is a CLOSED BOOK examination. You may refer ONLY to the clean copy of the case chart and the syllabus as provided to you in the classroom before the exam. NO OTHER BOOKS OR REFERENCE MATERIALS, WHETHER ORIGINALS OR COPIES, MAY BE USED.

    2. Deal with the question on the basis of materials and topics we have covered in Contract Law classes during this term. Do not concern yourself with cases that are not on the case chart.

    3. You may refer to cases in the short form (for example, Carlill when you refer to the case Carlill v Carbolic Smoke).

    4. If you think that additional facts are necessary to answer a question fully, please

    state those facts and explain why they are necessary.

    THIS EXAMINATION CONSISTS OF 1 QUESTION.

  • Page 2/3 MARKS Question 1: 100 Maxwell Shock is a 70-year-old successful business owner, an engineer, and a

    widower. His home and his business office are in Kelowna, BC. His engineering company “Maxwell Equipment LP” (MELP) is well known for their innovation in gas equipment. His company was trusted and well-known player in gas and oil industry in North America. Maxwell was devastated by his wife’s death. He sought refuge in work, family, and old friendships.

    Maxwell did not want to return to the empty house after his wife’s funeral so he

    allowed his high school friend Norman and his wife Lana, who were going through some hard times and were living in a motor home, to move into his basement apartment. He made them sign an agreement that “in exchange for 1.00 dollar per month and natural love and affection” they would live in the apartment for as long as Maxwell was alive. They happily lived with Maxwell and he never collected a penny “for rent.” There were days when they were loud and they could have kept the place cleaner but Maxwell never complained because of his fear of solitude.

    Soon after his wife had died in the fall of 2018, Maxwell’s company MELP started

    negotiating a new and complicated project to design four gas compression units for a BC company “Natural Energy Light” (NEP) working on an expansion project for its Lightening Bay site. NEP’s project manager and lead engineer Ms. Goldsteam contacted MELP by email on October 10, 2018, and explained that NEP needed four custom natural gas compression units delivered before the weather would warm up in the spring 2019 making roads too soft to deliver heavy equipment. The project’s price was originally set at $6.1 million.

    Maxwell emailed back to NEP on October 11, 2018: “To meet proposed schedule

    MELP would need precise details of the compression units ASAP. We would need to find a manufacturer capable of meeting your timeline. We have some coolers in stock that could be remodeled and we could start working on orders for other process equipment when we see your specifications.”

    NEP emailed specifications on October 12, 2018. On October 17, 2018, Maxwell

    emailed back. The message included four quotations for four different types of compressor packages that MELP had proposed to design for NEP, a letter of intent which a one-page summary of each unit’s components and price, a list of proposed options for the units to be selected by NEP and confirmed by MELP, and MELP’s Terms and Conditions which set out the MELP’s warranty. After receiving MELP’s documents, Ms. Goldsteam emailed back explaining that the Board of NEP was yet to approve the Expansion Project and to prepare a formal contract between NEP and MELP. She would contact Maxwell immediately when the approval came through.

  • Page 3/3 MARKS Question 1 continues: 100 On October 29, 2018, Ms. Goldsteam emailed “no news yet” and asked if MEP

    could “get something started.” Maxwell responded within an hour explaining that he could complete the engineering design and make some orders before the full project was committed but that these actions would require NEP’s payment of 10% of each unit value immediately. Ms. Goldsteam emailed back immediately: “This is a real squeeze but do we have any option?” Maxwell responded: “Not with us.”

    On November 5, 2018, Ms. Goldsteam emailed to Maxwell: “Please find attached

    our signed Intent to Purchase. As noted, options and terms will be defined on a forthcoming purchase order. Please also note that we will be purchasing only 2 units. Let me know if you need anything else to get things rolling.” The signed Intent to Purchase contained MELP’s Terms and Conditions, including price modified for a 2 units order.

    After seeing the signed Intent to Purchase Maxwell started making orders and paying

    suppliers for elements needed for the units. He hired two part time engineers in order to meet NEP’s timeline. From November 15, 2018, and pursuant to the Terms and Conditions, Maxwell started emailing progress invoices to NEP for every step of the work and every purchase MELP made. NEP did not protest invoices but never paid a dime – not even the 10% advance for each unit requested by MELP.

    On January 15, 2019, Ms. Goldsteam emailed to Maxwell NEP’s notice of

    cancellation of its order of two units. Maxwell did not see this email for three days because he was out of the office to celebrate Orthodox New Year in memory of late wife’s faith. But since that was not a statutory holiday, his office kept working on the two units. When he returned to the office, he emailed back to request payments of the submitted invoices under a contract that, in his opinion, MELP had concluded with NEP. Ms. Goldsteam emailed back that NEP would not pay invoices as there was no contract concluded between NEP and MELP.

    Maxwell was overwhelmed and felt disappointed in people. He came to your office

    today. Maxwell first explained that he offered Norman and Lana a friendly help when he let them use the basement flat but he now wanted them to leave. They refused and said that they did nothing wrong – they still loved him dearly and that it was true that they had never paid but he had never asked them for money. Then, Maxwell said that he has been calling and emailing Ms. Goldsteam every week since January 17, 2019, but she has never picked up the phone or answered his emails. Maxwell also said that MELP could not survive loss suffered due to NEP’s breach of the contract. Assume that no statute applies to Maxwell’s relations with his tenants and NEP and explain how would court see his rights and liabilities on the basis of principles of Contract Law.

    THE END OF EXAMINATION

  • LAW 211.004: Contract Law Syllabus and Outline 2019/2020

    Professor: Ljiljana Biukovic/GEE Small Group

    NOTE: THIS DOCUMENT IS A PLAN, NOT A CONTRACT. CASES AND READINGS ARE SUBJECT TO ADDITIONS, DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED BY YOUR INSTRUCTOR IN CLASS IN ADVANCE.

    1

    ________________________________________________

    COURSE SYLLABUS

    Term 1

    INTRODUCTION TO THE STUDY OF THE LAW OF CONTRACT

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 1-15

    FORMATION OF THE AGREEMENT: OFFER AND ACCEPTANCE

    1. Introduction

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 17-20

    2. Offer and invitation to treat (MacDougall, ch.1)

    Canadian Dyers Assn. Ltd. v Burton 20 Pharmaceutical Society v Boots 23 Carlill v Carbolic Smoke Ball Co. 28 Goldthorpe v Logan 33 R. v Ron Engineering & Const. (Eastern) Ltd. 36 M.J.B. Enterprises Ltd. v Defence Const. (1951) Ltd. 39 Mega Reporting Inc. v Yukon (2018 YKCA 10) supp.

    3. Communication of offer

    Williams v Carwardine 48 R. v Clarke 50

    4. Acceptance Livingstone v Evans 53 Butler Machine Tool Co. v Ex-Cell-O Corp. 56 Dawson v Helicopter Exploration Co. 67 Felthouse v Bindley 73 Saint John Tug Boat Co. v Irving Refinery Ltd. 76 Eliason v Henshaw 81 Business Practices & Consumer Protection Act (B.C.), ss. 12-14 (unsolicited goods) supp.

    5. Communication of acceptance

    (a) Mailed acceptance

  • LAW 211.004: Contract Law Syllabus and Outline 2019/2020

    Professor: Ljiljana Biukovic/GEE Small Group

    NOTE: THIS DOCUMENT IS A PLAN, NOT A CONTRACT. CASES AND READINGS ARE SUBJECT TO ADDITIONS, DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED BY YOUR INSTRUCTOR IN CLASS IN ADVANCE.

    2

    Household Fire & Carriage Accident Ins. Co. v Grant 83 Holwell Securities v Hughes 86 (b) Instantaneous methods of communication

    Brinkibon Ltd. v Stahag Stahl 89 Electronic Transactions Act (B.C.), ss. 15-18 supp. Century 21 v Rogers Communications Inc. (2011 BCSC 1196) supp. Business Practices & Consumer Protection Act (B.C.) supp.

    s. 17 “distance sales contract”, s. 46 (disclosure of information), s. 47 (distance sales contract in electronic form), s. 48 (copy of distance sales contract), s. 49 (cancellation of distance sales contract);

    6. Termination of offer

    (a) Revocation Dickinson v Dodds 99 Byrne v Van Tienhoven 103 Errington v Errington 104

    (b) Lapse

    Barrick v Clark 106

    FORMATION OF THE AGREEMENT: CERTAINTY OF TERMS (MacDougall, ch.4)

    1. Introduction

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 113-15

    2. Vagueness

    R. v CAE Industries Ltd. 116

    3. Incomplete terms

    May & Butcher Ltd. v R. 122 Hillas & Co. Ltd. v Arcos Ltd. 124 Foley v Classique Coaches Ltd. 129 4. Agreements to negotiate

  • LAW 211.004: Contract Law Syllabus and Outline 2019/2020

    Professor: Ljiljana Biukovic/GEE Small Group

    NOTE: THIS DOCUMENT IS A PLAN, NOT A CONTRACT. CASES AND READINGS ARE SUBJECT TO ADDITIONS, DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED BY YOUR INSTRUCTOR IN CLASS IN ADVANCE.

    3

    Sale of Goods Act (B.C.), ss. 12-13 supp. Ben-Ishai & Percy, Contracts: Cases and Commentaries 134-35

    Empress Towers Ltd. v Bank of Nova Scotia 136 Mannpar Enterprises Ltd. v Canada 138 Ben-Ishai & Percy, Contracts: Cases and Commentaries 143-49

    5. Anticipation of formalization

    Bawitko Investments Ltd. v Kernels Popcorn Ltd. 150

    THE ENFORCEMENT OF PROMISES (MacDougall, chs.7-9)

    1. Introduction

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 157-59

    2. Exchange and bargains

    Dalhousie College (Governors of) v Boutilier Estate 159 Wood v Duff-Gordon 169 Business Practices and Consumer Protection Act (B.C.) supp. NOTE: s. 17 “continuing services contract” and “future performance contract”, s. 19 (required contents), s. 23 (future performance contracts), s. 24 (continuing service contract—terms), s. 25 (continuing service contract—cancellation); Regulation 272/2004

    3. Past consideration Eastwood v Kenyon 170

    Lampleigh v Brathwait 172

    4. Consideration must be of value in the eyes of the law

    Thomas v Thomas 173

    5. Bona fide compromises of disputed claims B. (D.C.) v Arkin 175

    6. Pre-existing legal duty

    (a) Introduction

  • LAW 211.004: Contract Law Syllabus and Outline 2019/2020

    Professor: Ljiljana Biukovic/GEE Small Group

    NOTE: THIS DOCUMENT IS A PLAN, NOT A CONTRACT. CASES AND READINGS ARE SUBJECT TO ADDITIONS, DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED BY YOUR INSTRUCTOR IN CLASS IN ADVANCE.

    4

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 179 (b) Public duty Ben-Ishai & Percy, Contracts: Cases and Commentaries 180 (c) Duty owed to a third party Pao On v Lau Yiu Long 180 (d) Duty owed to the promisor – the traditional position

    Gilbert Steel Ltd. v University Const. Ltd. 185 Foakes v Beer 190 Law and Equity Act (B.C.), s. 43 supp NOTE: Abrogates (within limits) the rule in Cumber v. Wane, which was applied in Foakes v Beer. (e) Duty owed to the promisor – judicial reform Williams v Roffey 192 Nav Canada v Greater Fredericton Airport Authority 198 Rosas v Toca 203 7. Promissory estoppel (MacDougall, ch.9) Central London Property Trust Ltd. v High Trees House Ltd. 215 Dunn v Vicars (2009 BCCA 477) supp. M. (N.) v A. (A.T.) 238 8. Intention to create legal relations (MacDougall, ch.3) (a) Introduction Ben-Ishai & Percy, Contracts: Cases and Commentaries 244 (b) Family arrangements Balfour v Balfour 244

    (c) Commercial arrangements Rose & Frank Co. v J.R. Crompton & Bros. Ltd. 248 Toronto-Dominion Bank v Leigh Instruments Ltd. (Trustee of) 250

    9. Formality: promises under seal (MacDougall, ch.8)

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 254

    10. Formality: the requirement of writing

    Law and Equity Act (B.C.), s. 59 supp. Electronic Transactions Act (B.C.), supp.

  • LAW 211.004: Contract Law Syllabus and Outline 2019/2020

    Professor: Ljiljana Biukovic/GEE Small Group

    NOTE: THIS DOCUMENT IS A PLAN, NOT A CONTRACT. CASES AND READINGS ARE SUBJECT TO ADDITIONS, DELETIONS AND REORDERING WHICH WILL BE ANNOUNCED BY YOUR INSTRUCTOR IN CLASS IN ADVANCE.

    5

    s. 5 (requirement for a record to be in writing), s. 11 (signatures) Rock Advertising Ltd. v MWB Business Exchange Centres Ltd. (2018 UKSC 24) supp.

    PRIVITY OF CONTRACT (MacDougall, ch.7)

    1. Introduction Ben-Ishai & Percy, Contracts: Cases and Commentaries 285-86 2. History of the doctrine of privity and third party beneficiaries Tweddle v Atkinson 286 Dunlop Pneumatic Tyre Co. Ltd. v Selfridge & Co. Ltd. 287 3. Ways in which a third party may acquire the benefit

    (a) Statute Ben-Ishai & Percy, Contracts: Cases and Commentaries 291-93 (b) Specific performance Beswick v Beswick 293-97 (c) Employment London Drugs Ltd. v Kuehne & Nagel Int’l Ltd. 309 (d) The Principled Exception Fraser River Pile & Dredge Ltd. v Can-Dive Services Ltd. 319

    4. Privity and contract theory

    Ben-Ishai & Percy, Contracts: Cases and Commentaries 324-25 CONTINGENT AGREEMENTS Ben-Ishai & Percy, Contracts: Cases and Commentaries 327-32 Wiebe v Bobsien 332-40 Dynamic Transport Ltd. v O.K. Detailing Ltd. 343 Law and Equity Act (B.C.), s. 54 supp.

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    ers

    fair

    ly a

    nd

    in

    go

    od

    fait

    h).

    Co

    ntr

    act

    B i

    s th

    e co

    nst

    ruct

    ion

    co

    ntr

    act

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    wee

    n t

    he

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    ner

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    d t

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    ten

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    Form

    atio

    n:

    Off

    er &

    Invit

    ati

    on

    to

    Trea

    t

    - te

    nd

    ers

  • 2

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [6

    ]

    M

    .J.B

    . E

    nte

    rpri

    ses

    Ltd

    . v

    Defe

    nce

    Co

    nst

    ruct

    ion

    (1

    95

    1)

    Ltd

    [19

    99

    ] 1

    SC

    R 6

    19

    Th

    e su

    bm

    issi

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    of

    a te

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    er i

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    act

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    obli

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    (co

    ntr

    act

    A),

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    fro

    m t

    he

    obli

    gat

    ion

    s ass

    oci

    ate

    d w

    ith

    th

    e

    co

    nst

    ruct

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    co

    ntr

    act

    to b

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    red

    into

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    cce

    pta

    nce

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    en

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    Th

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    vile

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    only

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    term

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    ntr

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    A a

    nd

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    in h

    arm

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    ith

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    cum

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    —it

    do

    es n

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    ide

    the

    impl

    ied

    obli

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    to o

    nly

    accep

    t

    co

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    an

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    F

    orm

    atio

    n:

    Off

    er &

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    ati

    on

    to

    Trea

    t

    - te

    nd

    ers

    [7]

    Meg

    a R

    eport

    ing I

    nc.

    v Y

    uko

    n

    (2018 Y

    KC

    A 1

    0)

    Th

    e bre

    ach o

    f C

    on

    tract

    A d

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    trig

    ger

    th

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    eca

    use

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    cit

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    act

    A.

    Ex

    clu

    sio

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    pu

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    rocure

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    co

    ntr

    acts

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    ical

    ly u

    nenfo

    rceab

    le

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    c p

    oli

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    Cle

    ar e

    xclu

    sio

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    lau

    ses

    ag

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    po

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    ness

    part

    ies

    wil

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    oid

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    ubli

    c i

    nte

    rest

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    stanti

    ally

    inco

    nte

    stable

    .”

    Sta

    tuto

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    ule

    s o

    f tr

    an

    spare

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    were

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    bo

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    idd

    ers

    an

    d t

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    Form

    atio

    n:

    Off

    er &

    Invit

    ati

    on

    to

    Trea

    t

    - te

    nd

    ers

    [8

    ]

    Wil

    lia

    ms

    v C

    arw

    ard

    ine

    (18

    83)

    4 B

    . &

    Ad

    . 62

    1,

    11

    0 E

    .R.

    59

    0 (

    KB

    )

    Th

    e co

    urt

    hel

    d t

    hat

    in t

    he

    cas

    e of

    rew

    ard

    s (o

    r an

    off

    er t

    o a

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    e w

    ho

    can g

    ive

    the

    info

    rmat

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    req

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    ard

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    tives

    (fear

    of

    Go

    d’s

    pu

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    eca

    use

    sh

    e kn

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    the

    rew

    ard

    an

    d s

    he

    perf

    orm

    ed

    the

    act

    in

    qu

    esti

    on.

    Form

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Off

    er –

    pu

    bli

    c o

    ffer

    to a

    ny

    on

    e w

    ho

    do

    es

    som

    eth

    ing

    [9

    ]

    R. v C

    lark

    e

    (19

    27)

    40

    C.L

    .R.

    22

    7 (

    Au

    st.

    HC

    )

    Th

    e co

    urt

    h

    eld

    th

    at C

    lark

    e w

    as

    no

    t enti

    tled

    to

    th

    e re

    wa

    rd b

    eca

    use

    h

    e did

    n

    ot

    act

    in

    reli

    an

    ce o

    n t

    he

    off

    er

    bu

    t fo

    r oth

    er r

    ea

    sons

    (to

    cle

    ar

    him

    self

    fro

    m a

    fals

    e accusa

    tio

    n).

    Cla

    rke

    ad

    mit

    ted t

    hat

    he

    had f

    org

    ott

    en a

    bo

    ut

    the

    off

    er a

    nd t

    hu

    s co

    uld

    not

    had i

    nte

    nded t

    o

    accept

    it w

    hen h

    e h

    ad p

    erfo

    rmed t

    he

    req

    ues

    ted a

    ct.

    Form

    atio

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    Co

    mm

    un

    icati

    on

    of

    Off

    er –

    pu

    bli

    c o

    ffer

    to a

    ny

    on

    e w

    ho

    do

    es

    som

    eth

    ing

    [10

    ]

    Liv

    ingst

    on

    e v

    Eva

    ns

    [19

    25

    ] 3 W

    .W.R

    . 4

    53,

    [19

    25

    ] 4

    D.L

    .R.

    76

    9 (

    Alt

    a S

    C)

    A c

    oun

    ter-

    off

    er i

    s a r

    ejec

    tion

    of

    the o

    rigin

    al

    off

    er,

    a m

    ere

    in

    quir

    y is

    not.

    If a

    n o

    ffer

    or

    repli

    es

    to t

    he

    reje

    ctio

    n,

    the

    reply

    (“ca

    nn

    ot

    red

    uce

    pri

    ce”)

    may

    am

    ou

    nt

    to a

    ren

    ew

    al

    of

    the

    off

    er.

    Th

    e an

    swer

    is d

    ep

    en

    dent

    up

    on

    co

    nsi

    deri

    ng

    all

    surr

    ou

    ndin

    g

    circ

    um

    stan

    ces

    .

    Form

    atio

    n:

    Accep

    tan

    ce c

    ou

    nte

    r-

    off

    er;

    reje

    ctio

    n a

    nd

    co

    un

    ter o

    ffer

  • 3

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [1

    1]

    D

    aw

    son

    v H

    eli

    co

    pte

    r E

    xplo

    rati

    on

    C

    o. [1

    95

    5]

    SC

    R 8

    68

    • I

    n o

    rder

    to a

    void

    pro

    ble

    ms

    wit

    h c

    ontr

    act

    form

    atio

    n (

    and

    rev

    ocat

    ion

    of

    off

    er)

    co

    urt

    s sh

    ould

    treat

    off

    ers

    “as

    cal

    lin

    g f

    or

    bil

    atera

    l ra

    ther

    th

    an

    unil

    ater

    al a

    ctio

    n w

    hen

    th

    e la

    ng

    uag

    e c

    an b

    e

    fair

    ly s

    o c

    on

    stru

    ed

    ”;

    SC

    C f

    ou

    nd a

    bil

    atera

    l co

    ntr

    act

    was

    con

    clu

    ded.

    Alt

    ho

    ug

    h i

    n t

    heory

    an o

    ffer

    for

    a u

    nil

    ater

    al c

    on

    trac

    t can b

    e re

    vo

    ked

    an

    y t

    ime

    bef

    ore

    the

    accepta

    nce,

    su

    ch

    as

    off

    er c

    ould

    be

    inte

    rpre

    ted

    to

    hav

    e an i

    mpli

    ed

    ter

    m t

    hat

    an o

    ffer

    or

    wh

    o

    co

    ntr

    ols

    co

    ndit

    ion

    s of

    co

    op

    erat

    ion

    of

    an o

    ffer

    ee w

    ou

    ld n

    ot

    be

    allo

    wed

    to p

    rev

    ent

    per

    form

    an

    ce/

    acce

    pta

    nce

    of

    an o

    ffer

    ee.

    The

    SC

    C i

    nte

    rpre

    ted v

    ario

    us

    condit

    ions

    on w

    hic

    h p

    erfo

    rman

    ce o

    f th

    e co

    ntr

    act

    dep

    ended

    as

    condit

    ions

    pre

    ceden

    ts m

    eanin

    g t

    hat

    the

    bin

    din

    g c

    ontr

    act

    exis

    ted u

    p u

    nti

    l a

    condit

    ion s

    ubse

    quen

    t

    was

    not

    fulf

    ille

    d. T

    he

    def

    endan

    t had

    bro

    ken

    the

    contr

    act

    and t

    he

    pla

    inti

    ff’s

    sil

    ence

    was

    not

    found b

    y t

    he

    SC

    C t

    o b

    e th

    e fo

    rfei

    ture

    of

    the

    pla

    inti

    ff’s

    rig

    ht

    to d

    amag

    es f

    or

    bre

    ach o

    f co

    ntr

    act.

    Form

    atio

    n: off

    er a

    nd

    acc

    ep

    tan

    ce;

    un

    ila

    teral a

    nd

    bil

    ate

    ral c

    on

    tra

    cts

    [12

    ]

    B

    utl

    er

    Machin

    e T

    ool

    v E

    x-c

    ell-

    o

    Co

    rp.

    [19

    79

    ] 1 W

    .L.R

    . 4

    01,

    1 A

    ll E

    .R.

    96

    5 (

    CA

    )

    Lo

    rd D

    en

    nin

    g r

    est

    ated

    the

    tradit

    ion

    al l

    ast

    sho

    t fo

    rmula

    for

    a m

    ore

    holi

    stic

    appro

    ach t

    hat

    som

    etim

    es

    the

    co

    urt

    has

    to c

    om

    e u

    p w

    ith t

    erm

    s im

    pli

    ed a

    s n

    ece

    ssar

    y m

    ake

    the

    co

    ntr

    act

    wo

    rk:

    1.

    Last

    sho

    t: a

    co

    ntr

    act

    is c

    on

    clu

    ded

    up

    on t

    he

    term

    s of

    the

    last

    do

    cu

    men

    t se

    nt

    by o

    ne

    of

    the

    par

    ties

    th

    at w

    as

    not

    obje

    cted

    to;

    2.

    Fir

    st s

    hot:

    a c

    ontr

    act

    is

    co

    nclu

    ded

    up

    on t

    he

    term

    s of

    the

    firs

    t d

    ocu

    ment

    sent

    ; 3.

    All

    sh

    ots

    co

    unt

    an

    d t

    he

    co

    urt

    mu

    st d

    isco

    ver

    its

    ter

    ms

    on a

    n o

    bje

    ctiv

    e

    basi

    s: A

    ) a

    con

    trac

    t is

    con

    clu

    ded

    up

    on t

    erm

    s d

    raw

    n f

    rom

    all

    th

    e d

    ocu

    ments

    th

    at h

    av

    e

    pas

    sed

    bet

    ween

    th

    e p

    arti

    es

    wh

    en

    th

    e te

    rms

    can b

    e re

    co

    nci

    led

    as

    to g

    ive a

    harm

    onio

    us

    resu

    lt,

    or

    B)

    a co

    ntr

    act

    is n

    ot

    co

    ncl

    ud

    ed

    sin

    ce t

    he d

    iffe

    ren

    ces

    are

    irre

    co

    nci

    lable

    .

    F

    orm

    atio

    n:

    Accep

    tan

    ce –

    co

    un

    ter-o

    ffer;

    batt

    le o

    f fo

    rm

    s

    [13

    ]

    F

    elth

    ou

    se v

    Bin

    dle

    y

    (19

    62)

    11 C

    .B.

    (N.S

    . 8

    69,

    14

    2 E

    .R.

    10

    37 (

    Ex

    . C

    h.)

    Sil

    en

    ce d

    oes

    not

    am

    ou

    nt

    to a

    ccepta

    nce.

    Ev

    en

    th

    ou

    gh

    the

    nep

    hew

    (se

    ller)

    mig

    ht

    hav

    e in

    ten

    ded

    to

    sel

    l, h

    e n

    ever

    co

    mm

    unic

    ated

    this

    inte

    nti

    on

    to h

    is u

    ncl

    e (b

    uyer)

    .

    In g

    enera

    l, t

    he

    off

    eror

    is i

    n c

    ontr

    ol

    of

    the

    mo

    de

    of

    acce

    pta

    nce

    bu

    t th

    e co

    urt

    s ar

    e re

    luct

    ant

    to

    allo

    w s

    ilence

    to b

    e sp

    eci

    fied

    as

    the

    mo

    de

    of

    accepta

    nce.

    Form

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Accep

    tan

    ce

    [1

    4]

    Sain

    t Jo

    hn

    Tu

    g B

    oa

    t C

    o.

    v Ir

    vin

    g

    Ref

    iner

    y L

    td. [1

    96

    4]

    SC

    R.6

    14

    Both

    off

    er a

    nd a

    ccep

    tance

    could

    be

    com

    munic

    ated

    by c

    onduct

    .

    Th

    e co

    ndu

    ct o

    f an o

    ffero

    r (k

    eepin

    g t

    he

    bo

    at a

    vai

    lable

    ) and t

    he

    co

    nd

    uct

    of

    an o

    ffer

    ee,

    un

    acco

    mp

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    d b

    y a

    ny

    ver

    bal

    or

    wri

    tten

    un

    dert

    akin

    g,

    co

    uld

    u

    nd

    er c

    erta

    in c

    ircu

    mst

    an

    ces

    (such a

    s co

    nti

    nuin

    g s

    erv

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    n t

    erm

    s p

    revio

    usl

    y a

    gre

    ed

    ) b

    e re

    aso

    nably

    co

    nst

    ruct

    ed

    as

    val

    id

    offe

    r an

    d ac

    cepta

    nce.

    F

    orm

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Accep

    tan

    ce

    [1

    5]

    E

    liaso

    n v

    Hen

    shaw

    4 W

    hea

    ton 2

    25

    (US

    SC

    1819)

    A v

    alid

    acc

    epta

    nce

    is

    the

    one

    that

    com

    pli

    es w

    ith m

    ode

    of

    acce

    pta

    nce

    sti

    pula

    ted i

    n t

    he

    off

    er.

    The

    US

    court

    hel

    d t

    hat

    the

    acce

    pta

    nce

    has

    to b

    e in

    the

    mode

    as s

    tipula

    ted b

    ut

    not

    actu

    ally

    lite

    rall

    y t

    he

    sam

    e (a

    ccep

    tance

    “by r

    eturn

    wag

    on”

    inte

    rpre

    ted t

    o m

    ean t

    hat

    acc

    epta

    nce

    had

    to b

    e

    com

    munic

    ated

    wit

    hin

    the

    tim

    e th

    e re

    turn

    tri

    p w

    ould

    req

    uir

    e).

    Form

    atio

    n:

    Com

    mu

    nic

    ati

    on

    of

    Acc

    epta

    nce

  • 4

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [1

    6]

    Bri

    nki

    nb

    on

    v S

    tah

    ag

    Sta

    hl

    [19

    83

    ] 2 A

    .C.

    34 [

    19

    82

    ] 1 A

    ll E

    .R.

    2

    93 (

    HL

    )

    Th

    e m

    ailb

    ox

    rule

    (th

    e con

    trac

    t is

    co

    ncl

    uded

    wh

    ere

    an

    d w

    hen

    th

    e a

    ccepta

    nce i

    s m

    aile

    d)

    ap

    pli

    es

    on

    ly i

    f ac

    cepta

    nce b

    y m

    ail

    is r

    eq

    uir

    ed

    or

    if t

    hat

    has

    been

    a r

    eg

    ula

    r b

    usi

    nes

    s p

    ract

    ice

    of

    the

    par

    ties

    or

    if t

    he

    off

    er

    is m

    ad

    e b

    y m

    ail

    an

    d n

    o a

    ccepta

    nce

    req

    uir

    em

    ents

    are

    speci

    fied

    .

    Th

    e re

    ceip

    t ru

    le (

    the

    co

    ntr

    act

    is

    mad

    e w

    hen

    an

    d w

    her

    e th

    e ac

    cepta

    nce i

    s re

    cei

    ved)

    app

    lies

    to i

    nst

    anta

    neo

    us

    co

    mm

    unic

    atio

    ns

    such

    as

    ph

    on

    e or

    tele

    x o

    r fa

    csim

    ile.

    Form

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Accep

    tan

    ce–

    Inst

    an

    tan

    eo

    us

    co

    mm

    un

    icati

    on

    [17

    ]

    H

    ou

    seh

    old

    Fir

    e v

    Gra

    nt

    (18

    79)

    4 E

    x.

    D, 2

    16 (

    CA

    )

    Th

    e co

    urt

    up

    hel

    d t

    he

    genera

    l m

    ail

    bo

    x ru

    le i

    n s

    itu

    ati

    on

    s w

    here

    th

    e a

    ccepta

    nce

    is

    lost

    in

    th

    e

    post

    an

    d a

    s a

    co

    nse

    qu

    ence t

    he

    off

    eror

    was

    bo

    un

    d b

    y t

    he

    off

    er

    even

    th

    ou

    gh

    acce

    pta

    nce

    was

    not

    recei

    ved.

    Th

    e m

    ajori

    ty h

    eld

    th

    e p

    ost

    off

    ice

    to b

    e th

    e ag

    ent

    of

    both

    par

    ties.

    Th

    e dis

    sent

    reje

    cte

    d t

    his

    an

    d a

    ppli

    ed

    th

    e re

    cipie

    nt

    rule

    .

    Form

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Accep

    tan

    ce –

    mail

    ed

    accep

    tan

    ce

    [18

    ]

    Ho

    lwel

    l S

    ecu

    riti

    es

    v H

    ug

    hes

    [19

    74

    ] 1 W

    .L.R

    . 1

    55,

    1 A

    ll E

    .R.

    16

    1 (

    CA

    )

    Th

    e p

    ost

    al r

    ule

    sh

    ould

    only

    ap

    ply

    if

    it d

    oes

    not

    lead

    to “

    manif

    est

    in

    co

    nvenie

    nce

    an

    d

    absu

    rdit

    y".

    Th

    e po

    stal

    rule

    do

    es n

    ot

    ap

    ply

    if

    the

    ex

    pre

    ss t

    erm

    s of

    the

    off

    er s

    pec

    ify

    that

    th

    e acc

    epta

    nce

    mu

    st r

    each

    the

    off

    ero

    r. T

    he

    req

    uir

    em

    ent

    for

    “n

    oti

    ce” w

    as

    hel

    d t

    o i

    nv

    ok

    e t

    he

    reci

    pie

    nt

    rule

    .

    Form

    atio

    n:

    Co

    mm

    un

    icati

    on

    of

    Accep

    tan

    ce –

    mail

    ed

    accep

    tan

    ce

    [1

    9]

    C

    entu

    ry 2

    1 C

    an

    ad

    a v

    Ro

    gers

    Co

    mm

    un

    icati

    ons

    Inc.

    20

    11 B

    CS

    C 1

    19

    6

    • T

    he

    act

    of

    vis

    itin

    g t

    he

    web

    sit

    e co

    uld

    co

    nst

    itute

    th

    e acc

    epta

    nce

    of

    term

    s (o

    f u

    se)

    of

    the

    web

    ag

    reem

    en

    t an

    d t

    he

    form

    atio

    n o

    f co

    ntr

    act

    as

    lon

    g a

    s a

    use

    r of

    the w

    eb

    sit

    e co

    nti

    nues

    to

    bro

    wse

    aft

    er

    readin

    g t

    he

    term

    s p

    ost

    ed.

    Th

    e co

    urt

    fo

    un

    d t

    hat

    th

    ere

    was

    an e

    nfo

    rceable

    bro

    wse

    wra

    p a

    gre

    em

    ent

    on t

    he

    Cen

    tury

    21

    web

    sit

    e an

    d t

    hat

    term

    s o

    f use

    were

    pro

    perl

    y i

    ncorp

    ora

    ted

    becau

    se t

    he

    term

    s of

    use

    were

    clear

    an

    d a

    per

    son

    wh

    o b

    row

    sed

    th

    e w

    eb

    sit

    e had

    en

    oug

    h t

    ime

    to r

    ead

    th

    em

    pri

    or

    to

    accepti

    ng

    them

    .

    Form

    atio

    n:

    Accep

    tan

    ce b

    y

    Bro

    wsi

    ng

    ;

    web

    po

    sted

    co

    ntr

    act

    s

    (bro

    wse

    wra

    p

    agre

    em

    ents

    )

    [2

    0]

    Byrn

    e v

    Va

    n T

    ien

    hoven

    (18

    80)

    C.P

    .D.

    34

    4

    Th

    e m

    ailb

    ox

    rule

    do

    es

    not

    ap

    ply

    to r

    ev

    ocat

    ion

    —re

    vocati

    on

    mu

    st b

    e re

    ceiv

    ed

    by

    the

    off

    eree

    to b

    e ef

    fect

    ive.

    Form

    atio

    n:

    Term

    ina

    tio

    n o

    f

    Off

    er -

    Rev

    ocati

    on

    [21

    ]

    D

    icki

    nso

    n v

    Do

    dd

    s

    (18

    76)

    2 C

    h.

    D. 4

    63 (

    CA

    )

    Th

    e co

    urt

    hel

    d t

    hat

    an o

    ffer

    co

    uld

    be

    revoked

    by i

    ndir

    ect

    co

    mm

    unic

    ati

    on

    app

    lyin

    g t

    he

    sam

    e

    genera

    l ru

    le l

    ogic

    —th

    at i

    s, o

    nce

    the

    per

    son

    to w

    ho

    m t

    he

    off

    er w

    as

    mad

    e k

    no

    ws

    that

    th

    e

    pro

    per

    ty h

    as b

    een

    sold

    to s

    om

    eo

    ne e

    lse,

    it

    is t

    oo

    lat

    e fo

    r th

    em

    to a

    ccept

    the

    off

    er a

    nd

    th

    e

    co

    ntr

    act

    is i

    mp

    oss

    ible

    to m

    ak

    e.

    A p

    rom

    ise t

    o h

    old

    an o

    ffer

    op

    en

    is

    not

    bin

    din

    g u

    nle

    ss h

    av

    e co

    nsi

    der

    atio

    n o

    r a

    dee

    d.

    Eq

    uit

    y

    can

    not

    be a

    ppli

    ed

    wh

    en

    a t

    hir

    d p

    arty

    has

    acq

    uir

    ed

    rig

    hts

    .

    Form

    atio

    n:

    Term

    ina

    tio

    n o

    f

    Off

    er -

    Rev

    ocati

    on

    [2

    2]

    E

    rrin

    gto

    n v

    Err

    ingto

    n a

    nd W

    oo

    ds

    [19

    52

    ] 1 K

    B 2

    90,

    [19

    52

    ] 1 A

    ll

    E.R

    . 1

    49 (

    CA

    )

    Un

    ilat

    era

    l co

    ntr

    act

    s ar

    e fo

    rmed

    wh

    en

    all

    co

    ndit

    ion

    s of

    the

    off

    er a

    re m

    et.

    In g

    en

    eral

    , off

    ers

    for

    unil

    ater

    al c

    ontr

    act

    s can b

    e r

    evo

    ked

    an

    y t

    ime

    pri

    or

    to c

    om

    ple

    te

    fulf

    illm

    ent

    by t

    he

    off

    eree

    , b

    ut

    the

    co

    urt

    held

    th

    at i

    n t

    his

    case

    an o

    ffer

    for

    a u

    nil

    atera

    l

    co

    ntr

    act

    co

    uld

    not

    be r

    evo

    ked

    by

    the p

    rom

    iso

    r as

    it c

    onta

    ined

    an im

    plied

    pro

    mis

    e not t

    o r

    evoke

    on

    ce t

    he p

    rom

    ese

    e had

    ente

    red

    on

    per

    form

    an

    ce o

    f th

    e act

    (b

    ut

    it w

    ou

    ld c

    eas

    e to

    bin

    d t

    he

    off

    ero

    r if

    perf

    orm

    an

    ce w

    as

    left

    inco

    mple

    te a

    nd

    u

    np

    erf

    orm

    ed

    ).

    Form

    atio

    n:

    Term

    ina

    tio

    n o

    f

    Off

    er –

    Un

    ilate

    ral

    co

    ntr

    acts

  • 5

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [23

    ]

    Ba

    rric

    k v

    Cla

    rk

    [19

    51

    ] S

    CR

    17

    7, [1

    95

    0]

    4 D

    .L.R

    .

    52

    9

    An

    off

    er

    wil

    l la

    pse

    if

    it i

    s n

    ot

    acce

    pte

    d w

    ithin

    a t

    ime

    lim

    it d

    eter

    min

    ed

    by t

    he

    off

    ero

    r, o

    r if

    a

    tim

    e li

    mit

    is

    no

    t sp

    eci

    fied,

    then

    it

    wil

    l la

    pse

    wit

    hin

    a r

    eas

    on

    able

    tim

    e.

    Th

    e co

    urt

    wil

    l det

    erm

    ine w

    ha

    t is

    a r

    easo

    na

    ble

    tim

    e usi

    ng

    th

    e ru

    le o

    f con

    stru

    ctio

    n

    (obje

    ctiv

    e test

    )—it

    wil

    l d

    ep

    en

    d u

    po

    n t

    he

    nat

    ure

    an

    d c

    har

    act

    er

    of

    the

    item

    bei

    ng

    sold

    , o

    n t

    he

    no

    rmal

    or

    usu

    al c

    ours

    e o

    f b

    usi

    ness

    in n

    eg

    oti

    atio

    ns

    as w

    ell

    as

    the

    circ

    um

    stan

    ces

    of

    the

    off

    er,

    incl

    udin

    g t

    he

    co

    nd

    uct

    of

    the

    par

    ties

    in t

    he

    co

    urs

    e of

    neg

    oti

    atio

    n.

    F

    orm

    atio

    n:

    Term

    ina

    tio

    n o

    f

    Off

    er –

    La

    pse

    of

    Tim

    e

    [2

    4]

    R. v C

    AE

    In

    du

    stri

    es

    Ltd

    .

    [19

    86

    ] 1

    F.C

    . 1

    29 (

    FC

    A)

    Th

    e co

    urt

    deal

    t w

    ith

    vag

    uen

    ess

    of

    a “

    bes

    t ef

    fort

    s” t

    erm

    by c

    onst

    ruct

    ing

    its

    reaso

    nable

    mea

    nin

    g i

    n t

    he

    co

    nte

    xt

    of

    the

    lan

    gu

    ag

    e u

    sed

    by

    th

    e part

    ies

    an

    d t

    he

    ov

    eral

    l p

    urp

    ose

    of

    the

    co

    ntr

    act

    wh

    ich

    has

    als

    o b

    een

    par

    tly

    perf

    orm

    ed

    .

    Pre

    lim

    inar

    y i

    ssu

    e w

    as

    if t

    he

    co

    ntr

    act

    was

    inte

    nd

    ed

    an

    d t

    he

    co

    urt

    hel

    d t

    hat

    it

    co

    uld

    be

    an

    swere

    d b

    y a

    nal

    yzi

    ng

    th

    e su

    rro

    un

    din

    g c

    ircu

    mst

    an

    ces

    as w

    ell

    as

    the

    lett

    er

    itse

    lf.

    F

    orm

    atio

    n:

    Va

    gu

    en

    ess

    of

    Term

    s

    [25

    ]

    M

    ay

    & B

    utc

    her

    v R

    .

    [19

    34

    ] 2 K

    B 1

    7 (

    HL

    )

    To

    be

    a g

    oo

    d c

    ontr

    act

    th

    ere m

    ust

    be

    a co

    nclu

    ded

    bar

    gain

    wh

    ich

    set

    tles

    ev

    eryth

    ing

    th

    at i

    s

    nec

    ess

    ary

    to b

    e se

    ttle

    d a

    nd

    leaves

    noth

    ing

    to b

    e se

    ttle

    d b

    y l

    ater

    ag

    reem

    en

    t b

    etw

    een

    th

    e

    par

    ties

    .

    It h

    as

    lon

    g b

    een

    a w

    ell

    -reco

    gn

    ized

    pri

    nci

    ple

    of

    co

    ntr

    act

    law

    th

    at a

    n a

    gre

    em

    ent

    in w

    hic

    h

    som

    e cri

    tica

    l p

    art

    of

    the

    co

    ntr

    act

    mat

    ter

    is l

    eft

    un

    det

    erm

    ined

    is

    no c

    ontr

    act

    at

    all.

    It i

    s p

    erfe

    ctly

    po

    ssib

    le t

    o c

    ontr

    act

    to s

    ign

    a d

    ocu

    men

    t w

    hic

    h w

    ill

    co

    nta

    in a

    ll t

    he

    rele

    vant

    term

    s, b

    ut

    it i

    s n

    ot

    accepta

    ble

    to a

    gre

    e th

    at t

    he

    par

    ties

    wil

    l in

    th

    e fu

    ture

    agre

    e u

    po

    n a

    mat

    ter

    wh

    ich

    is

    vit

    al t

    o t

    he

    co

    ntr

    act

    .

    F

    orm

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s

    [2

    6]

    Hil

    las

    v A

    rcos

    (19

    32)

    14

    7 L

    .T.

    503

    (H

    L)

    Ho

    use

    of

    Lord

    s to

    ok

    a m

    ore

    mo

    dern

    ap

    pro

    ach:

    Bu

    sin

    ess

    men

    oft

    en

    record

    the m

    ost

    imp

    ort

    ant

    agre

    em

    ents

    in

    cru

    de a

    nd

    su

    mm

    ary

    fas

    hio

    n;

    mo

    des

    of

    ex

    pre

    ssio

    n s

    uff

    icie

    nt

    an

    d

    clear

    to

    th

    em

    in t

    he

    co

    urs

    e o

    f th

    eir

    bu

    siness

    th

    at a

    re f

    ar f

    rom

    co

    mple

    te o

    r pre

    cise

    .

    It i

    s th

    e d

    uty

    of

    the

    co

    urt

    to

    co

    nst

    rue s

    uch

    docu

    ments

    fai

    rly

    an

    d b

    roadly

    , w

    ith

    out

    bei

    ng

    to

    o

    astu

    te o

    r su

    btl

    e in

    fin

    din

    g d

    efect

    s.

    Form

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s

    [27

    ]

    F

    ole

    y v

    Cla

    ssiq

    ue C

    oa

    ch

    es

    Ltd

    .

    [19

    34

    ] 2 K

    B 1

    (C

    A)

    Inte

    rpre

    ted

    th

    e gen

    eral

    pri

    nci

    ple

    s of

    H.L

    .’s

    deci

    sio

    n i

    n H

    illa

    s to

    mean

    that

    each c

    ase

    sho

    uld

    be

    deci

    ded

    on t

    he

    con

    stru

    ctio

    n o

    f th

    e p

    arti

    cula

    r d

    ocu

    ment.

    Held

    th

    at a

    n a

    gre

    em

    en

    t to

    agre

    e o

    n p

    rice

    fro

    m t

    ime

    to t

    ime

    was

    cert

    ain

    en

    ou

    gh

    sin

    ce t

    he

    par

    ties

    bel

    ieved

    th

    ey

    had

    a c

    on

    trac

    t an

    d h

    ad

    act

    ed

    for

    3 y

    ear

    s as

    if t

    hey

    did

    i.e

    . th

    ere

    was

    alre

    ad

    y p

    arti

    al p

    erf

    orm

    an

    ce:

    Th

    e l

    and

    had

    been

    tra

    nsf

    erre

    d a

    nd

    a p

    ort

    ion

    of

    the

    sale

    of

    gas

    ag

    reem

    en

    t h

    ad b

    een

    perf

    orm

    ed.

    F

    orm

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s

    [2

    8]

    Em

    pre

    ss v

    Ba

    nk

    of

    No

    va

    Scoti

    a

    [19

    91

    ] 1 W

    .W.R

    . 5

    37 (

    BC

    CA

    )

    Th

    e co

    urt

    wil

    l tr

    y,

    wh

    ere

    ver

    po

    ssib

    le,

    to g

    ive

    the

    pro

    per

    leg

    al e

    ffec

    t to

    any

    cla

    use

    that

    th

    e

    par

    ties

    un

    der

    sto

    od

    an

    d i

    nte

    nd

    ed

    to h

    av

    e le

    gal

    eff

    ect

    .

    Wh

    en

    the

    par

    ties

    sta

    ted

    a f

    orm

    ula

    (e.

    g.

    mark

    et r

    enta

    l) t

    o a

    scer

    tain

    a c

    lau

    se,

    but

    did

    not

    sup

    ply

    mac

    hin

    ery

    (e.

    g.

    arbit

    rati

    on)

    for

    ap

    ply

    ing

    th

    e fo

    rmula

    , th

    e c

    ou

    rts

    wil

    l su

    pply

    (b

    e) t

    he

    mac

    hin

    ery

    an

    d a

    pply

    th

    e fo

    rmula

    e s

    o l

    on

    g a

    s th

    e fo

    rmula

    e is

    not

    def

    ecti

    ve.

    Wh

    ere

    the

    form

    ula

    is

    set

    out

    but

    is d

    efe

    ctiv

    e, a

    nd

    machin

    ery

    is

    pro

    vid

    ed

    for

    ap

    ply

    ing

    the

    form

    ula

    , th

    e m

    achin

    ery

    may

    be

    use

    d t

    o c

    ure

    th

    e d

    efect

    in t

    he

    form

    ula

    .

    Alt

    ho

    ug

    h t

    he

    tradit

    ion

    al c

    om

    mo

    n l

    aw

    ru

    le i

    s th

    at a

    gre

    em

    en

    ts t

    o a

    gre

    e can

    not

    be

    en

    forc

    ed t

    he

    co

    urt

    in t

    his

    case

    hel

    d th

    at t

    her

    e w

    as

    an i

    mpli

    ed

    ter

    m r

    eq

    uir

    ing

    go

    od

    fai

    th n

    eg

    oti

    atio

    ns

    tow

    ards

    a m

    arket

    ren

    tal pri

    ce f

    or

    the

    ren

    ew

    al

    of

    the r

    enta

    l ag

    reem

    ent

    an

    d t

    her

    efore

    it

    was

    enfo

    rcea

    ble

    .

    Form

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s

  • 6

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [29

    ] M

    an

    np

    ar

    En

    terp

    rise

    s L

    td. v

    Ca

    na

    da

    [19

    99

    ] 1

    73

    D.L

    .R. (4

    th)

    24

    3

    (BC

    CA

    )

    Th

    e co

    urt

    hel

    d t

    hat

    the

    ren

    ew

    al

    clause

    in t

    he

    renta

    l co

    ntr

    act

    was

    a m

    ere

    ag

    reem

    ent

    to

    ag

    ree—

    the c

    ontr

    act

    did

    not

    pro

    vid

    e a

    form

    ula

    or

    obje

    ctiv

    e m

    easu

    re t

    o d

    eter

    min

    e r

    ent

    (such

    as

    fair

    mark

    et v

    alu

    e) o

    r a

    mech

    anis

    m t

    o a

    pp

    ly t

    he

    form

    ula

    .

    Als

    o,

    the

    Cro

    wn

    was

    act

    ing o

    n b

    ehal

    f of

    the

    Sk

    yw

    ay B

    an

    d a

    nd w

    as

    not

    free

    to

    neg

    oti

    ate

    but

    had t

    o r

    eneg

    oti

    ate

    the

    ren

    ew

    al

    in a

    ccord

    ance

    wit

    h t

    he

    Ban

    d’s

    wis

    hes

    .

    Form

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s

    [30

    ]

    Ba

    wit

    ko

    Invest

    ment

    Ltd

    . v

    Kern

    els

    Po

    po

    corn

    Ltd

    . (1

    99

    1)

    79 D

    .L.R

    . (4

    th)

    97(O

    nt.

    CA

    )

    Th

    e co

    urt

    hel

    d th

    at a

    n ora

    l ag

    reem

    ent

    in c

    onte

    mpla

    tio

    n o

    f a f

    orm

    al w

    ritt

    en

    ag

    reem

    ent

    was

    not

    enfo

    rcea

    ble

    du

    e to

    th

    e la

    ck

    of

    cer

    tain

    ty;

    it w

    as

    a co

    ntr

    act

    to m

    ak

    e a

    co

    ntr

    act

    .

    The

    court

    const

    ruct

    ed t

    he

    par

    ties

    ’ in

    tenti

    on t

    o b

    e bound b

    y a

    nal

    yzi

    ng

    how

    man

    y a

    spec

    ts o

    f th

    e

    rela

    tionsh

    ip h

    ad r

    emai

    ned

    to b

    e se

    ttle

    d b

    y t

    he

    par

    ties

    .

    Form

    atio

    n:

    Cert

    ain

    ty o

    f T

    erm

    s;

    An

    tici

    pati

    on

    of

    form

    al

    con

    tract

    [3

    1]

    Balf

    ou

    r v

    Balf

    ou

    r

    [19

    19

    ] 2 K

    B 5

    71

    Atk

    in L

    .J.:

    the

    co

    mm

    on

    law

    do

    es

    not

    reg

    ula

    te a

    gre

    em

    ents

    bet

    ween

    sp

    ou

    ses…

    Th

    e

    co

    nsi

    der

    atio

    n t

    hat

    real

    ly o

    bta

    ins

    fro

    m t

    hem

    is

    that

    nat

    ura

    l lo

    ve

    an

    d a

    ffect

    ion.

    Th

    ere

    is a

    str

    on

    g p

    resu

    mpti

    on

    th

    at f

    am

    ily

    ag

    reem

    ents

    are

    no

    t in

    ten

    ded

    to p

    rod

    uce

    leg

    al

    co

    nse

    quen

    ces

    .

    Inte

    nti

    on

    to

    Cre

    ate

    Leg

    al

    Ob

    ligat

    ion

    ;

    So

    cial

    Set

    iin

    g

    [32

    ]

    R

    ose

    an

    d F

    rank v

    J.R

    . C

    rom

    pto

    n

    Bro

    s., [1

    92

    3]

    2 K

    B 2

    61 (

    CA

    )

    Th

    ere

    is a

    str

    on

    g p

    resu

    mpti

    on

    that

    bu

    sin

    ess

    ag

    reem

    ents

    are

    in

    ten

    ded

    to p

    rod

    uce

    legal

    co

    nse

    quen

    ces

    .

    Ho

    wev

    er,

    if

    ther

    e is

    a c

    lear

    an

    d d

    efin

    ite e

    xp

    ress

    ion

    of

    the

    bu

    sin

    ess

    part

    ies

    that

    th

    ey

    do

    not

    inte

    nd

    to b

    e su

    bje

    ct t

    o l

    egal

    juri

    sdic

    tio

    n,

    ther

    e i

    s n

    o r

    easo

    n i

    n p

    ubli

    c p

    oli

    cy

    wh

    y

    effe

    ct

    sho

    uld

    not

    be

    giv

    en

    to t

    hei

    r in

    tenti

    on

    .

    Inte

    nti

    on

    to

    Cre

    ate

    Leg

    al

    Ob

    ligat

    ion

    :

    Bu

    sin

    ess

    Set

    tin

    g

    [3

    3]

    Toro

    nto

    Dom

    inio

    n B

    ank

    v L

    eigh

    Inst

    rum

    ents

    (1999)

    178 D

    LR

    (4

    th)

    634

    A l

    ette

    r of

    co

    mfo

    rt h

    eld n

    ot

    to b

    e in

    ten

    ded t

    o b

    e bin

    din

    g a

    s a

    gu

    arante

    e b

    ut

    only

    as

    a bro

    adly

    wo

    rded s

    tate

    ment

    pro

    vid

    ed t

    o a

    bank b

    y a

    par

    ent

    co

    mp

    an

    y a

    bo

    ut

    its

    poli

    cy

    to

    ward

    s a

    sub

    sidia

    ry c

    om

    pan

    y (

    wh

    ich w

    as

    not

    to m

    anag

    e L

    eig

    h’s

    aff

    airs

    ).

    Inte

    nti

    on

    to

    Cre

    ate

    Leg

    al

    Ob

    ligat

    ion

    :

    Bu

    sin

    ess

    Set

    tin

    g

    [34]

    Th

    e G

    overn

    ors

    of D

    alh

    ou

    sie

    Co

    lleg

    e at

    Ha

    lifa

    x v

    The

    Est

    ate

    of

    Art

    hur

    Bo

    uti

    lier

    , D

    ecea

    sed

    [19

    34

    ] S

    CR

    64

    2

    For

    a pro

    mis

    e t

    o b

    e bin

    din

    g a

    s a

    co

    ntr

    act

    it h

    as

    to b

    e su

    pp

    ort

    ed

    by a

    go

    od a

    nd

    su

    ffic

    ient

    co

    nsi

    der

    atio

    n w

    hic

    h m

    ov

    es

    fro

    m t

    he p

    rom

    isee a

    t th

    e ti

    me

    of

    an

    d i

    n e

    xch

    ang

    e fo

    r th

    e

    pro

    mis

    e w

    hic

    h i

    s so

    ug

    ht

    to b

    e en

    forc

    ed.

    The

    pro

    mis

    e of

    the

    dec

    ease

    d w

    as n

    ot

    giv

    en i

    n e

    xch

    ange

    for

    a pro

    mis

    e by t

    he

    univ

    ersi

    ty n

    or

    could

    the

    univ

    ersi

    ty’s

    act

    ions

    in r

    elia

    nce

    on a

    rep

    rese

    nta

    tion o

    r a

    pro

    mis

    e co

    uld

    not

    be

    use

    d

    to c

    reat

    e a

    legal

    obli

    gat

    ion (

    pro

    mis

    sory

    est

    oppel

    could

    not

    be

    use

    d a

    s a

    “sw

    ard”

    – s

    ee c

    ases

    on p

    rom

    isso

    ry e

    stoppel

    bel

    ow

    ).

    En

    forc

    em

    ent of

    Pro

    mis

    es:

    Co

    nsi

    derati

    on

    [3

    4]

    W

    ood v

    Lucy

    , L

    ady

    Duff

    -Gord

    on

    (1917)

    118 N

    E 2

    014 (

    NY

    1917)

    Th

    e co

    urt

    im

    pli

    ed a

    good c

    onsi

    der

    atio

    n i

    nto

    an a

    gre

    emen

    t bet

    wee

    n t

    he

    par

    ties

    the

    sam

    e w

    ay

    court

    s im

    ply

    ter

    ms

    into

    contr

    act

    in o

    rder

    to g

    ive

    “busi

    nes

    s ef

    fici

    ency

    ” to

    the

    agre

    emen

    t.

    Th

    e im

    pli

    ed p

    rom

    ise

    of

    Wood t

    o p

    rom

    ote

    Lucy

    ’s d

    esig

    n w

    as n

    eces

    sary

    to m

    ake

    the

    agre

    emen

    t

    work

    bec

    ause

    wit

    hout

    it L

    ucy

    ’s p

    rom

    ise

    to g

    ive

    Wood e

    xcl

    usi

    ve

    rights

    would

    be

    unen

    forc

    eable

    .

    Enfo

    rcem

    ent

    of

    Pro

    mis

    es:

    Imp

    lied

    Con

    sid

    erati

    on

    [35

    ]

    Ea

    stw

    oo

    d v

    Ken

    yo

    n

    (18

    40)

    11 A

    d.

    & E

    . 4

    38,

    11

    3 E

    .R.

    48

    2 (

    QB

    )

    Mo

    ral

    obli

    gat

    ion

    is

    nu

    du

    m p

    act

    um

    , a

    volu

    nta

    ry p

    rom

    ise

    wit

    ho

    ut

    an

    y c

    on

    sidera

    tion.

    Pas

    t con

    sid

    erat

    ion

    is

    no

    t a

    go

    od

    co

    nsi

    dera

    tio

    n f

    or

    a n

    ew

    pro

    mis

    e m

    ad

    e af

    ter

    a b

    enef

    it w

    as

    co

    nfe

    rred

    an

    d w

    hen

    th

    e b

    en

    efit

    was

    no

    t co

    nfe

    rred

    at

    the r

    eq

    uest

    of

    the p

    rom

    iso

    r.

    En

    forc

    em

    ent

    of

    Pro

    mis

    es:

    Past

    Co

    nsi

    derati

    on

  • 7

    L

    aw

    211

    .04

    Biu

    kovi

    c

    C

    ase

    R

    ule

    T

    op

    ic

    [36

    ]

    La

    mp

    leig

    h v

    Bra

    thw

    ait

    , (1

    61

    5)

    Ho

    bart

    10

    5,

    80 E

    .R.

    25

    5 (

    KB

    )

    Pas

    t co

    nsi

    der

    atio

    n m

    ay

    be a

    go

    od c

    onsi

    der

    atio

    n f

    or

    a su

    bse

    qu

    ent

    pro

    mis

    e i

    f th

    e b

    enefi

    t w

    as

    co

    nfe

    rred

    at th

    e re

    qu

    est

    of

    the

    pro

    mis

    or.

    En

    forc

    em

    ent:

    Pa

    st

    Co

    nsi

    derati

    on

    [3

    7]

    Th

    om

    as

    v T

    ho

    ma

    s

    (18

    42)

    2 Q

    B 8

    51,

    11

    4 E

    .R.

    33

    0

    Co

    nsi

    der

    atio

    n i

    s so

    met

    hin

    g w

    hic

    h i

    s of

    som

    e val

    ue

    in t

    he

    eyes

    of

    the

    law

    .

    Co

    nsi

    der

    atio

    n m

    ust

    mo

    ve

    fro

    m t

    he

    pro

    mis

    e.

    Co

    nsi

    der

    atio

    n m

    ust

    be

    suff

    icie

    nt

    but

    nee

    d n

    ot

    be

    ad

    equ

    ate.

    E

    nfo

    rcem

    ent of

    Pro

    mis

    es:

    Na

    ture o

    f

    Co

    nsi

    derati

    on

    [38]

    B

    . (D

    .C.)

    v A

    rkin

    [1996]

    M.J

    . N

    o. 362 (

    QB

    )

    [1996]

    M.J

    . N

    o. 499 (

    Man

    . C

    A)

    Pro

    mis

    e to

    forb

    ear

    fro

    m l

    aw

    suit

    may c

    onst

    itute

    a v

    alid

    co

    nsi

    der

    atio

    n w

    hen g

    iven i

    n

    retu

    rn f

    or

    a p

    rom

    ise

    to p

    ay a

    su

    m o

    f m

    on

    ey.

    Ho

    wev

    er,

    the

    pro

    mis

    e to

    fo

    rbear

    a

    clai

    m w

    ould

    n

    ot

    be

    co

    nst

    itute

    g

    oo

    d co

    nsi

    dera

    tion

    wh

    en

    a c

    laim

    lack

    s m

    erit

    an

    d t

    he

    per

    son m

    akin

    g a

    thre

    at t

    o s

    ue k

    no

    ws

    that

    th

    e cl

    aim

    was

    not

    val

    id,

    an

    d t

    he

    mo

    ney p

    aid i

    n e

    xchan

    ge

    for

    such

    a p

    rom

    ise

    is r

    eco

    ver

    able

    (no

    te:

    the

    law

    yer

    for

    Zel

    lers

    knew

    th

    at t

    her

    e w

    as

    no v

    alid

    cla

    im a

    gai

    nst

    a p

    arent)

    .

    En

    forc

    em

    ent of

    Pro

    mis

    es:

    Fo

    rb

    ea

    ra

    nce –

    Bo

    na

    Fid

    e

    Co

    mp

    ro

    mis

    es

    [39

    ]

    P

    ao

    On

    v L

    au

    Yiu

    Lo

    ng

    [19

    80

    ] A

    .C.

    61

    4 (

    PC

    )

    Pas

    t con

    sid

    erat

    ion

    can b

    e g

    oo

    d c

    on

    sid

    erat

    ion

    if:

    1.

    Th

    e a

    ct w

    as

    do

    ne

    at t

    he

    pro

    mis

    or’

    s

    req

    ues

    t; 2

    . T

    he p

    arti

    es u

    nd

    erst

    oo

    d t

    hat

    the a

    ct w

    as

    to b

    e re

    mu

    ner

    ated

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    3.P

    ay

    men

    t

    wo

    uld

    have

    been

    legall

    y e

    nfo

    rceable

    had

    it

    bee

    n p

    rom

    ised

    in

    ad

    vance.

    A p

    rom

    ise t

    o p

    erfo

    rm,

    or

    the p

    erfo

    rman

    ce o

    f a

    pre

    -exis

    tin

    g c

    ontr

    actu

    al o

    bli

    gat

    ion

    to a

    th

    ird

    par

    ty c

    an

    be

    val

    id c

    on

    sidera

    tio

    n.

    Eco

    no

    mic

    dure

    ss i

    s a

    co

    erci

    on

    of

    the

    wil

    l so

    as

    to v

    itia

    te c

    onse

    nt

    an

    d m

    ay

    re

    nd

    er a

    co

    ntr

    act

    void

    able

    , b

    ut

    this

    mu

    st b

    e cl

    aim

    ed

    pro

    mptl

    y (

    note

    : n

    ot

    fou

    nd o

    n t

    he

    fact

    s of

    the

    case

    )

    Th

    e co

    mm

    erc

    ial

    pre

    ssure

    all

    eg

    ed

    to c

    onst

    itute

    eco

    nom

    ic d

    ure

    ss m

    ust

    be

    such

    that

    the

    vic

    tim

    ente

    red

    th

    e co

    ntr

    act

    ag

    ain

    st t

    hei

    r w

    ill,

    th

    ey

    had

    no a

    lter

    nati

    ve c

    ours

    e o

    pen

    to t

    hem

    , an

    d t

    hey

    were

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