10: The law of contract

Question 1

What is the relevant legislation for goods sold between business to business?

Answer 1

Sale of Goods Act 1979

Question 2

What is the relevant legislation for goods sold between business and consumer?

Answer 2

Consumer Rights Act 2015

Question 3

A contract for the sale of goods will meet the following requirements: (5)

Answer 3

Seller agree
Transfer Property
Good
To the Buyer
For consideration

The seller agrees to transfer the property (ownership) of the good to the buyer, in return for money consideration, called the price

Question 4

What is the definition of goods

Answer 4

Choses in possession

All chattels excluding choses in action and money

Question 5

Can the sale of a good be both existing goods and future goods?

Answer 5

Yes

Question 6

What must the consideration in a sale be?

Answer 6

The consideration must be money, otherwise it would be considered a barter or exchange

Question 7

In a sale, if the consideration is only partly money, is this still considered a sale, or otherwise a barter or exchange?

Answer 7

Even if the consideration is only partly money, it is still considered a sale.

Question 8

Is it the seller’s or buyer’s duty to deliver the goods?

Answer 8

sellers

Question 9

Is it the sellers or buyers duty to agree and pay for the goods?

Answer 9

buyers

Question 10

What is the difference between the contract of sale an contract of agreement?

Answer 10

contract of agreement does not entail the delivery of the goods

Question 11

What are the 3 essential elements for a contract to be made in english law?

Answer 11

• The parties intend to create legal relations
• There is an agreement by offer and acceptance
• The agreement is supported by consideration or contained in a deed

Question 12

Once the offeree accepts the offer from the offerer, can new terms be incuded into the contract?

Answer 12

No, unless they both agree to it

Question 13

A gratuitous promise is only binding if made by ____.

Answer 13

Deed

Question 14

most contracts do not have to be in writing. the exceptions to these are: (2)

Answer 14

• contracts to do with the sale of land

- contracts to do with the sale of shares

Question 15

“The form of a contract is an essential element to the formation of a contract”

True or false?

Answer 15

False

The form of a contract is not an essential element to the formation of a contract

Question 16

Which one of the following is NOT an essential element for making a contract under english law?

• intention to create legal relations
• written form
• offer and acceptance
• consideration

Answer 16

written form

Question 17

Are items in a shop window an offer or an invitation to treat and WHY?

Answer 17

An invitiation to treat, because the display of items is a form of advertisement and therefore an invitiation to treat. The customer picking up the goods off the shelves is the offer and it is up to the till person to accept or reject this offer

Question 18

if the offeree rejects the offer, then wants to accept a few days later, will the contract still be active?

Answer 18

no, once they reject the contract is terminated

Question 19

What are the 6 ways a contract can be terminated

Answer 19

rejection
counter offer
revocation
lapse of time
failure of condition precedent
death

Question 20

Can acceptance of a contract by the offeree only be done in a written form?

Answer 20

no, can be done both written and verbally. through words or actions.

Question 21

“Acceptance must be ____ and ____

Answer 21

final and unqualified

Question 22

if someone accepts and offer and this acceptance is done via sending a letter in the post, when is it deemed that the contract has been accepted?

Answer 22

the date it is sent

Question 23

if revocation of an offer is done via letter in the post, what is the date that it is deemed to have been revoked?

Answer 23

the date the letter is received

Question 24

cecil wants to accept an offer of one grass piece from mecil. cecil rings mecil but mecil doesn’t pick up. cecil leaves a message on voicemail saying she will accept.

does this voicemail recording constitute as an acceptance of the offer?

Answer 24

no. voicemails or emails not sent or read do not result in the communication of acceptance.

Question 25

promissory conditions - are they conditions or terms of a contract?

Answer 25

terms of a contract. it is not a condition, as a promissory condition is something that can be controlled by one of the parties and has the POWER TO FULFILL, and therefore is within their power to bring about. a condition is not within their power.

Question 26

what are the two types of conditions?

Answer 26

condition precedent, condition subsequent

Question 27

Sesame agrees to buy a piece of grass from Miso, but only if mecil is picked up in the next 10 mins.

this is a promissory condition
this is a condition precedent
this is a condition subsequent

which one?

Answer 27

condition precedent.

it is not within the power of miso to be picked up. she is able to squeak, however it is ultimately up to a human being to pick her up, and therefore does not technically have the POWER TO FULFILL the condition.

Question 28

under a condition contract, there are some typical obligations which may impose a degree of obligation: (3)

Answer 28

• a restricted right to withdraw from the contract
• a duty not to prevent the occurance of the condition
• a duty to make reasonable efforts to bring about the event

Question 29

what does the term “freedom of contract” mean?

Answer 29

the parties are generally free to make their own bargain and the terms of the contract must be decided by the parties

Question 30

what does ‘retention of title clause’ mean?

Answer 30

that the seller retains the title of ownership over the goods, passing only until the goods are paid for. this is even if the goods have been delivered

Question 31

what is the purpose of the retention of title clause

Answer 31

so that the seller has some form of security, in case of buyer’s insolvency

Question 32

what is the assignment of rights?

Answer 32

when the rights and benefits of the contract are transferred from one party to another

Question 33

what are the four vitiating factors in contract?

Answer 33

misrepresentation
duress/ undue influence
illegal terms
mistake