Law of contracts (1872) ------Some cases

-------------------------------------------------------1) Balfour Vs Balfour(1919):

Balfour, a husband agreed with his wife to send her certain amount of
money until she could join him in his town of posting. He however
defaulted and the wife filed a suit for recovery. The court held that
there was no intention to create legal relations.
Hence all contracts are agreements but all agreements are not
contracts (depends on legal enforceability)
2) Lalman Shukla Vs Gauri Dutt:
Lalman Shukla sent his servant Gauri Dutt in search of his missing
nephew. Subsequently he issued hand bills offering a reward of Rs.501
to anyone who traces the missing boy. His servant promptly brought
the boy back. After a few days he was terminated from service. He
filed a suit claiming the reward. The court held that there can be
no acceptance without the knowledge of offer.
Acceptance of an offer can be possible only when the offer is
communicated.
3) Parker Vs South East Rly Co (1877)
Parker deposited a bag in the cloakroom of South East Rly Co. He was
issued a ticket in exchange, with the words See back printed on the
face of the ticket. One of the conditions printed at the back of the
ticket was that the liability of the Co. was limited to $10 unless extra
charge was paid. The bag was lost. The court held that Parker was
bound by the conditions printed at the back of the ticket.
4) Felthouse Vs Bentley(1862)
Felthouse offers to buy Bentleys horse for $300. He writes If you do
not reply, I shall assume that you have accepted the offer. Bentley
does not reply. Meanwhile he authorizes ABC Auctioneers to dispose all
his household articles, as he was going abroad. They disposed off the
articles, including the horse. Felthouse claims that the horse belonged
to him. The court held that silence does not amount to
acceptance of an offer and there is no contract formation
between the two parties. Hence Felthouse was not entitled to
get damages.
5) Montecarlo hotel Vs Olley: A couple hired a hotel suite and paid a
weeks advance for boarding & lodging. When they went to occupy the

room, they found a notice on the wall, stating that the hotel would not
be liable for articles stolen or lost, unless it is entrusted with the
Manager for safe custody. Owing to negligence of hotel staff, the
couple lost some jewelry and cash kept in a handbag inside the room.
The court held that the notice on the wall did not form part of
the contract since the couple could see it only after the contract
was made and hence they were entitled to receive damages.
6) Neal Vs Meritt (1930): An offer of land by Meritt for $280 was
accepted by Mr. Neal who enclosed $80 along with his letter of
acceptance and promised to pay the balance in monthly installments of
$50. Mr. Meritt returned the $50 rejecting the acceptance. The court
held that there is no contract formed as the acceptance was
conditional.
7) Brogden Vs Eastern Rail Co
After receiving a tender for supply of 500 tons of coal from Brogden,
the Manager of Eastern Rail Co wrote the word approved on it and
advised his secretary to send a communication. However the note was
lying in his drawer with no communication to Brogden. The court
held that Brogden was not obliged to supply because
acceptance of offer was never communicated.
8) Ramsgate Victoria hotel Vs Montefiore (1866): Montefiore applied
for 200 shares of Ramsgate Victoria hotel Co. on 8th June. However he
got a communication from them only in November and hence he
refused to take the shares. The court held that the offer had
lapsed due to unreasonable delay.
9) Houseful Fire Insurance Co. Vs Grant (1879): Grant had applied
for 100 shares of the company. The letter of allotment dispatched by
the company was not received. However the company went into
liquidation after a year and Grant was asked to pay his share of
liability as a shareholder. The court held that mere posting of
letter amounted to acceptance and that Grant was liable.