2 - contract formation Flashcards
what happens if an individual is under 18
contract is voidable at the option of the minor
what happens if a contract involves illegal property
void
what does a void vs voidable contract mean
void means it is not a contract at all
voidable is one that may be set aside
how can a contract be unenforceable?
if it is not in the right form
which cases is an oral contract not sufficient (2)
transfer of land
consumer credit agreements
what encompasses an invitation to treat and how does this affect an offer?
invitation to treat can be;
- advertisements
- goods displayed in a window
- circulation of a price list
what happens when a counter offer is proposed
the original offer does not stand anymore
what happens if an offerees response is a request for information
the offer is not affected
what happens if acceptance is made by post
the acceptance will be effective from the moment it is posted, even if it is delayed or lost
what is the main presumption of the words ‘subject to contract’
no immediately binding contract is intended
what is consideration
what each party agrees to give to the other
what is past consideration
something that has already been done when the promise has been made
is past consideration valid or invalid
it is normally invalid
what is executed consideration
a performed act in return for a promise
what is executory consideration
a promise for a promise
when is consideration not required
a deed
which three contracts need to be in the form of a deed
conveyances, leases over three years and promises unsupported by consideration
what is an example of a promise unsupported by consideration
a promise to pay a regular amount to a charity with nothing in return
does consideration need to be adequate?
no
how does performance of existing statutory duty affect consideration
not consideration unless extra services were offered
what are the key facts of Foakes v Beer 1884
beer agreed to accept payments from Foakes in installments but no mention of interest
interest should have been charged
once foakes had paid, beer claimed interest
beer was entitled to interest, foakes had no right to waive interest
what happens if part of a debt is waived
this is valid and supported by consideration
what happens if terms are left incomplete
the contract is not valid
what are two ways a contract can be implied
by statute or by the courts
what is privity of contract
only people party to a contract can enforce it
what are two main exceptions to privity of contract
when an agent enters into a contract, they cannot enforce it
a third party may enforce a contract if the contract says they can, or the terms confers a benefit onto them
