10: The law of contract Flashcards
What is the relevant legislation for goods sold between business to business?
Sale of Goods Act 1979
What is the relevant legislation for goods sold between business and consumer?
Consumer Rights Act 2015
A contract for the sale of goods will meet the following requirements: (5)
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
What is the definition of goods
Choses in possession
All chattels excluding choses in action and money
Can the sale of a good be both existing goods and future goods?
Yes
What must the consideration in a sale be?
The consideration must be money, otherwise it would be considered a barter or exchange
In a sale, if the consideration is only partly money, is this still considered a sale, or otherwise a barter or exchange?
Even if the consideration is only partly money, it is still considered a sale.
Is it the seller’s or buyer’s duty to deliver the goods?
sellers
Is it the sellers or buyers duty to agree and pay for the goods?
buyers
What is the difference between the contract of sale an contract of agreement?
contract of agreement does not entail the delivery of the goods
What are the 3 essential elements for a contract to be made in english law?
- 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
Once the offeree accepts the offer from the offerer, can new terms be incuded into the contract?
No, unless they both agree to it
A gratuitous promise is only binding if made by ____.
Deed
most contracts do not have to be in writing. the exceptions to these are: (2)
- contracts to do with the sale of land
- contracts to do with the sale of shares
“The form of a contract is an essential element to the formation of a contract”
True or false?
False
The form of a contract is not an essential element to the formation of a contract
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
written form
Are items in a shop window an offer or an invitation to treat and WHY?
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
if the offeree rejects the offer, then wants to accept a few days later, will the contract still be active?
no, once they reject the contract is terminated
What are the 6 ways a contract can be terminated
rejection counter offer revocation lapse of time failure of condition precedent death
Can acceptance of a contract by the offeree only be done in a written form?
no, can be done both written and verbally. through words or actions.
“Acceptance must be ____ and ____
final and unqualified
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?
the date it is sent
if revocation of an offer is done via letter in the post, what is the date that it is deemed to have been revoked?
the date the letter is received
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?
no. voicemails or emails not sent or read do not result in the communication of acceptance.
promissory conditions - are they conditions or terms of a contract?
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.
what are the two types of conditions?
condition precedent, condition subsequent
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?
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.
under a condition contract, there are some typical obligations which may impose a degree of obligation: (3)
- 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
what does the term “freedom of contract” mean?
the parties are generally free to make their own bargain and the terms of the contract must be decided by the parties
what does ‘retention of title clause’ mean?
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
what is the purpose of the retention of title clause
so that the seller has some form of security, in case of buyer’s insolvency
what is the assignment of rights?
when the rights and benefits of the contract are transferred from one party to another
what are the four vitiating factors in contract?
misrepresentation
duress/ undue influence
illegal terms
mistake
