Specialists International
This Knowledge Check tests your understanding of how English law decides whether a construction contract has been formed, the subject of Lesson 1. It covers the objective test for formation, the separate questions of existence, date and terms, the analysis of letters of intent, and the leading authorities on work that begins before a formal contract is signed.
The questions draw on the reasoning in RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH and Co KG [2010] UKSC 14, G Percy Trentham Ltd v Archital Luxfer Ltd [1993], British Steel Corporation v Cleveland Bridge and Engineering Co Ltd [1984] and Wells v Devani [2019] UKSC 4. Work through the reasoning, not only the outcome; several questions turn on the difference between whether a contract existed and which terms governed the work.
- The objective test for contract formation
- Distinguishing existence, date and terms
- The legal effect of a letter of intent
- When a binding contract arose in RTS Flexible Systems
- Waiver of an execution or signature clause
- Why no contract was found in British Steel v Cleveland Bridge
- Certainty and enforceability after Wells v Devani
- Incorporation of terms such as liquidated damages
- Analysing work that continues after an interim contract expires