BSB111 Study Guide - Final Guide: Contributory Negligence, Defrosting, Misrepresentation

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Lect 7 formation of contracts (intention and agreement) Where the agreement between the parties is of a commercial nature, it is presumed that the parties do intend to create legal relations (edwards v skyways ltd). The social presumption can be rebutted if the agreement was made after the parties had separated (popiw vs popiw) Rule 1: goods displayed on shelves or shop windows are considered to be an invitation to treat: pharmaceutical society v boots cash chemists. Automatic vending machines such as drink, confectionary and self-serve garages selling petrol are not considered as invitations to treat, but offers. If par is excluded then acceptance is when the letter is received (adams v lindsell) e. g. in the order it says your acceptance of our order will be effective upon receipt of your acceptance at our office". Rule 4: offers may be terminated before acceptance takes place (byrne & co v leon van tienhoven & co)