11: The contract of law - specific contracts

Question 1

what are the particular formalities in creating a contract of agency?

Answer 1

there are none.

Question 2

How can a contract of agency be made? in writing, orally…?

Answer 2

can be made orally and in writing

Question 3

what is a contract of agency?

Answer 3

it is to allow an agent to act on behalf of a party (the principal) with third parties

Question 4

when will the case be that the agent is treated AS THE PRINCIPAL and bears duties/ liabilities between them and the third party?

Answer 4

when the agent does not disclose to the third party that they are themselves the agent

Question 5

If the third party knows the agents are acting as agents for the principal, the contract is between…?

Answer 5

the principal and third party

Question 6

if the third party knows the agents are acting as agents for the principal, does the agent incur rights and liabilities between themselves and the third party?

Answer 6

no

Question 7

if the agent does not disclose they are acting on behalf of someone else (ie. the agent contracts for an undisclosed principal), then the agent is treated as …?

Answer 7

the principal

Question 8

if the contract is not fulfilled whilst the third party does not know the agent is acting on behalf of someone else, who can sue who? (2 answers)

Answer 8

the third party can sue the agent.

if the third party finds the identity of the undisclosed principal, the third party can sue either the agent or principal.

Question 9

when the principal tells the third party that a certain agent is acting on behalf of them but actually does not, then the agent is said to have ____ or ____ authority

Answer 9

apparent or ostensible authority

Question 10

For the agent to have apparent or ostensible power of the principal, three requirements must be met:

Answer 10

• Representation must be made to the third party that the agent is acting on behalf of the principal
• The representation must be made by the principal themselves
• The third party must be relied on the representation given by the principal, proved by the third party entering a contract with the so called agent

Question 11

if the agent does not have any authority over the principal, are the current contracts between the would be principal and third party binding?

Answer 11

no

Question 12

if the agent does not have any auhtority over the principal, yet contracts have been completed with the agent acting on behalf, can the principal ratify the contract between the principal and the third party?

if so, once this contract has been ratified, when does the contract take place from?

Answer 12

yes it can be ratified

the contract will become binding on the principal as if the agent had actually been authorised beforehand

Question 13

what are the two contracts in a contract of guarantee?

Answer 13

the loan contract and collateral contract

Question 14

what are the three parties involved in a collateral contract?

Answer 14

loan creditor, loan debtor, guarantor

Question 15

what is another term for the type of contract of guarantee? tri-…?

Answer 15

tri partite

Question 16

for a contract of guarantee to be enforceable, it can be done in writing and orally

Answer 16

false.

needs to be done in writing by a note or memorandum, signed by the guarantor

Question 17

if a contract of gurarantee is completed in writing but the guarantor is not available that day to sign the contract, is it enforceable?

Answer 17

no, must be signed by the guarantor

Question 18

what is a right of preemption also known for?

Answer 18

a right of first refusal