1.2 Flashcards
1
Q
- 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.
2
Q
- 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.
3
Q
- 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.
4
Q
- 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.
5
Q
- 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.
6
Q
- 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.
7
Q
- 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.
8
Q
- 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.
9
Q
- 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.
10
Q
- 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.
11
Q
- 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.
12
Q
- 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.