Case Brief Pharmaceutical Society v Boots

Case Brief Name of Case Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd Citation and Court [1953] 1 QB 401 Court of Appeal of England and Wales Material Facts Boots Cash Chemist run a self-service store which means that the goods they sell are displayed on shelves which the customers would select and then take to the cashier to pay. If a customer buys a drug, then a registered pharmacist must supervise the sale. The Pharmaceutical Society alleged that this practice infringed Section 18 of the Pharmacy and Poisons Act 1933 which required the sale of certain drugs to be supervised by a registered pharmacist. Legal Issue The court had to decide whether the display of drugs on the shelves constituted an invitation to treat or an offer. Relevant Law Generally, a display of priced goods in shops is considered an invitation to treat and not an offer, as there is no intention to create a legally binding contract. Application of Law to the Facts Conclusion Question 1 What elements are required for the formation of a contract? Once a contract is formed, what are the elements that may vitiate that contract, and how would you describe those elements? - Elements required for the formation of a contract are Agreement (whether there has been an offer and an acceptance), Consideration (exchange of something of value), Intention (to create legal relations which produces legal consequences), Certainty and Completeness (an agreement should have certainty and completeness in its terms in order for it to be enforceable and to avoid disputes), and Capacity (to enter into legal relations. Certain groups of people are considered not having the legal capacity to do so e.g., children, mentally disabled people, intoxicated people, bankrupt people). - Vitiating factors include: - Misrepresentation. A false statement made by one party to induce the other party to enter into the contract. - Mistake. A mistake made by one or both parties about a material aspect of the contract, which can render the contract voidable. - Duress. When one party is forced or coerced into entering into a contract against their will. - Undue influence. When one party uses their power or position to coerce the other party into entering into the contract. - Unconscionability. A contract that is so one-sided or oppressive that it is considered morally or ethically unacceptable. - Illegality. A contract that is illegal or contrary to public policy is void. - Capacity. A contract entered into by a party who is not legally capable of entering into a contract, such as a minor, is voidable. - Lapse of time. A contract that is time-barred or has expired, is void. Question 2 What is the difference between bilateral and unilateral contracts? Give examples of each.

- Bilateral contract: the offeror’s promise is met by the offeree’s acceptance of that promise; an exchange of promises; the contract is formed when the promises are exchanged. For instance, take the example of a real estate agreement. In such agreements, a contract is signed between you and the real estate company to purchase a house. Now, both entities have to fulfill certain obligations. The company has to provide you with your desired house, and in return, you are obliged to pay a fixed amount of money for it. - Unilateral contract: the offeror’s offer is accepted by the offeree’s performance of an act specified in the offer; an act in exchange of a promise; the contract is formed when the act is performed. For example, a reward contract. For instance, in a criminal case, the government may offer a reward to someone who provides important information about the “wanted” criminal or the case itself. The reward can be given to one person or to multiple individuals who meet the specified criteria. Similarly, a unilateral contract may also have a request for labor. For instance, a company or individual may advertise a request for agreeing to pay a certain amount if the respondent does a specific task. Suppose Person A advertises to pay $500 to someone who can tutor them for an upcoming exam. Person B tutors Person A for the exam. Now, Person A has to pay $500 to Person B as per the advertised request. - Insurance contracts are another example of unilateral contracts. When you consult insurance services, the company promises to pay you a certain amount if a certain event occurs. However, if that event doesn’t happen, the company is not obliged to pay you any money. - It differs in the number of parties involved. Unilateral contracts rely on only one party to create a contract or promise for a specified or general group of people. On the other hand, bilateral contracts need at least two parties to negotiate, agree, and act upon a promise. Simply put, a unilateral contract is accepted after the action is completed, while the bilateral contract is accepted on a mutual signature. Question 3 Depending on the facts of a case, a contract may be declared ‘void’, ‘voidable’, ‘unenforceable’ or ‘illegal’. What do these words mean in the context of contract law? - Void: no contract ‘ab initio’ (from the beginning); no rights and obligations have arisen. - Voidable: a valid contract can be rescinded, usually because of a vitiating factor such as lack of consent; innocent party may also seek damages for any loss. - Unenforcable: may be valid but cannot be enforced, usually because of a lack of formal requirement such as writing. - Illegal: the purpose of the contract is contrary to statute or the common law, in some cases the contract may be unenforcable. Question 4 List the ways in which a ‘formal’ contract differs from a ‘simple’ contract and give examples of each. - Simple contracts have no special form, they can be oral, written, or a combination of both. - Simple contracts must be supported by consideration (an exchange of value). - Formal contracts require special formalities. They take the form of a deed (which must comply with particular form requirements prescribed by law). A deed has their own reqs and they have longer limitation to sue. E.g. in NSW you get 12 years instead of 6 years - Formal contracts (deeds) need not be supported by consideration. Question 5

(i) There is no choice of law clause in the written contract. (ii) There is a choice of law clause in the written contract stating: “The law of Victoria, Australia, shall govern this contract”. -> this is a valid choice of law (iii) There is a choice of law clause in the written contract stating: “The law of Victoria, Australia, excluding the 1980 Vienna Convention, shall govern this contract”. -> CISG wouldn’t apply because 1980 Vienna Convention is the CISG - In the first 2 cases the governing law would still be Australian Law including the CISG because the court has already determined it. - CISG Advisory Opinion No. 15 and No. 16 (Clear intention to exclude)