In: Finance
Question One
(a) “Silence can never amount to an acceptance”. With the aid of authorities or citing examples, discuss the highlighted statement.
(b) What do you understand by the principle of “Stare Decisis”? discuss with the aid of authorities (case law/ examples)
(c) What were the peculiar circumstances of Jones v Padavatton that meant that the agreement could not be enforced?
1. Silence cannot amount to acceptance because when someone makes you an offer and you do not respond to it, it doesn't mean that you are bound to obey the contract. Without the proper agreement between both the parties a contract doesn't exist.
2. Stare Decisis means when cased with a unique case or on going case with similar circumstances you have to follow historical cases with similar circumstances. It means that courts look to past, similar issues to guide their decisions.
3. It is an agreement between a mother and daughter. The mother promised to look after her daughter if she gave up her job and study for the bar exam. The mother even bought her a house. But there were some disputes between the mother and the daughter about the house she bought. The mother brought an action for possession of the house. The daughter argued there was a binding contract that she could stay. The mother’s appeal was successful and she was awarded possession. There is a presumption that family arrangements are based on mutual trust, family ties and affection, and that there is no intention to create legally binding contracts capable of enforcement in the courts.