When is a contract considered formed?

[LarryKnowles]

Let's say I want to buy some chocolate. I indicate to the person in the store I want. the chocolate, waiting at the counter, and hand over exact change. Is this then done and dusted? Is there a requirement I get the receipt to confirm the contract/sale has taken place? If not, could the person behind the counter hand me my money back and say "it's gone up in price by five pence in the last few seconds, so you can still have it but you need to pay 5p more."

[R0b]

There are 4 key ingredients which form a contract, an offer, acceptance of the offer, consideration and an intention to create legal relations.

I suspect in your situation the issue is the offer and acceptance part. There is a very well known case when you study law called Pharmaceutical Society of GB v Boots where the Court of Appeal held that the display of goods is an invitation to treat, and when you put your goods into the basket and take it to the counter you are then making an offer. The person behind the counter can then choose to accept your offer or reject it. Only when you hand the cash over and the person accepts it, the contract becomes formed.




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[LarryKnowles]

R0b*would you say that accepting the money from the person would be tantamount to the forth condition? i.e. acceptance? Seems so to me. No receipt would have to be provided to validate the acceptance, imo.

[R0b]

There is no requirement in law to provide a receipt.

Whether theres an intention to create legal relations is fact specific. Just because you hand cash over and the receiving person takes hold of it doesn't always mean that the contract is formed at that specific point. For example, if you handed over the incorrect amount then the recipient would be entitled to ask for the correct amount.*

The type of question your asking seems quite specific, is there a story behind this or is it some kind of legal study question?*

[LarryKnowles]

It is a flight I booked. I booked online and paid, and the money was held, and then taken from my bank account. But a day later the company sent me a refund. This was after I asked where my confirmation was. They told me that seconds after I booked, and the money was taken from my bank, they changed their prices. So they arranged the money to be refunded, and are now offering me the flight at £45 more cost.

[R0b]

So have you read the terms and conditions of sale and if so, what do they say about when the contract is formed?

Have you re-booked the flight?

[LarryKnowles]

T+C state that the flights are not final until the confirmation email is received. However, I would have thought general contract law trumps this?

[R0b]

Contract law is governed by what was agreed between the contracting parties. There are general contract principles but the courts will tend to apply what had been captured in the agreement unless its contrary to the law.

It is common for airlines and other goods and services companies to set out when a contract has been concluded.

So if the terms say that a contract is concluded when receiving confirmation email, then your contract with the airline does not exist until that point has been reached.
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