1.2 Flashcards

1
Q
  1. What is the significance of having a clear intention for both parties in a contract?
A
  • Answer: Clear intention ensures that both parties intend to conduct business together.
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2
Q
  1. How can you securely prove intention in a contract?
A
  • Answer: The most secure way is to put the contract in writing, creating a record of the agreed terms.
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3
Q
  1. What is “consideration” in a contract, and why is it crucial?
A
  • Answer: Consideration refers to what benefits each party will receive from participating in the contract. It’s crucial for a valid contract.
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4
Q
  1. Why must something of value be exchanged for a contract to be considered valid?
A
  • Answer: Without consideration, a contract lacks validity as it requires an exchange of something valuable.
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5
Q
  1. What role does legality play in contract enforcement?
A
  • Answer: The contract must be lawful, and the obligations within it must not be illegal for it to be enforceable.
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6
Q
  1. Why is it important to base the contract on the location where obligations are taking place?
A
  • Answer: It ensures that the contract aligns with the most suitable and local contract law for proper protection.
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7
Q
  1. Explain the importance of an “offer” within a contract.
A
  • Answer: An offer explains the nature of the exchange, specifying products, services, costs, and responsibilities.
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8
Q
  1. What is “acceptance” in a contract, and how is it typically demonstrated?
A
  • Answer: Acceptance involves clear agreement to the contract terms, often shown by signatures.
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9
Q
  1. Why is it crucial for a contract to provide clarity of terms?
A
  • Answer: Clarity of terms ensures that essential commitments are clearly defined, preventing contract breaches.
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10
Q
  1. What happens when a contract lacks clarity regarding essential terms?
A
  • Answer: It may lead to a breach of contract due to misunderstandings or disagreements.
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11
Q
  1. How can putting a contract in writing enhance security and record-keeping?
A
  • Answer: It creates a tangible record of the agreed-upon terms, reducing disputes and enhancing legal security.
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12
Q
  1. What potential consequences should be outlined in a contract for parties not fulfilling their obligations?
A
  • Answer: Consequences for non-fulfillment of obligations should be detailed in the contract, such as penalties or remedies.
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