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Subject: Re: No contract unless money changes hands? Posted on: Wed, 24 Dec 2008 11:39:57 -0000


"R. Mark Clayton" wrote in message
news:AsadnZedf8eNk8zUnZ2dnUVZ8jCdnZ2d@bt.com...
>
> "fido" wrote in message
> news:60e548ed-b6fd-44b9-90ed-78a3fae71cf2@i18g2000prf.googlegroups.com...
> The Computeractive magazine gives some very useful legal advice.
> However in issue 282 they said:
> 'Under contract law there is no contract between two parties unless
> money has changed hands'.
>
> I emailed them basically saying that this in effect was rubbish (I was
> a bit more polite that that).
>
>
> Correct - however there has to be consideration, but it can be other than
> money and need not change hands immediately (e.g. when you order a meal at
> a restaurant and pay at the end).
>

Not a particularly good example because the contract between a diner and a
restranteur has a number of implied terms. For example when you go into a
restarant and order a meal, the contract runs along the lines of: I offer
you the price of (£x) for food and if I like the food, I will pay you for
it.

The point being that in a restarant, if the food doesn't come up to
expectations then the customer is not obliged to pay for it - or at least
not all of it.

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