2 - contract formation

Question 1

what happens if an individual is under 18

Answer 1

contract is voidable at the option of the minor

Question 2

what happens if a contract involves illegal property

Answer 2

void

Question 3

what does a void vs voidable contract mean

Answer 3

void means it is not a contract at all
voidable is one that may be set aside

Question 4

how can a contract be unenforceable?

Answer 4

if it is not in the right form

Question 5

which cases is an oral contract not sufficient (2)

Answer 5

transfer of land
consumer credit agreements

Question 6

what encompasses an invitation to treat and how does this affect an offer?

Answer 6

invitation to treat can be;
- advertisements
- goods displayed in a window
- circulation of a price list

Question 7

what happens when a counter offer is proposed

Answer 7

the original offer does not stand anymore

Question 8

what happens if an offerees response is a request for information

Answer 8

the offer is not affected

Question 9

what happens if acceptance is made by post

Answer 9

the acceptance will be effective from the moment it is posted, even if it is delayed or lost

Question 10

what is the main presumption of the words ‘subject to contract’

Answer 10

no immediately binding contract is intended

Question 11

what is consideration

Answer 11

what each party agrees to give to the other

Question 12

what is past consideration

Answer 12

something that has already been done when the promise has been made

Question 13

is past consideration valid or invalid

Answer 13

it is normally invalid

Question 14

what is executed consideration

Answer 14

a performed act in return for a promise

Question 15

what is executory consideration

Answer 15

a promise for a promise

Question 16

when is consideration not required

Answer 16

a deed

Question 17

which three contracts need to be in the form of a deed

Answer 17

conveyances, leases over three years and promises unsupported by consideration

Question 18

what is an example of a promise unsupported by consideration

Answer 18

a promise to pay a regular amount to a charity with nothing in return

Question 19

does consideration need to be adequate?

Answer 19

no

Question 20

how does performance of existing statutory duty affect consideration

Answer 20

not consideration unless extra services were offered

Question 21

what are the key facts of Foakes v Beer 1884

Answer 21

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

Question 22

what happens if part of a debt is waived

Answer 22

this is valid and supported by consideration

Question 23

what happens if terms are left incomplete

Answer 23

the contract is not valid

Question 24

what are two ways a contract can be implied

Answer 24

by statute or by the courts

Question 25

what is privity of contract

Answer 25

only people party to a contract can enforce it

Question 26

what are two main exceptions to privity of contract

Answer 26

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