4. Making a Contract Flashcards
What are the main statutes which protect consumers?
The competition and consumer Act 2010
Insurance Contracts Act
Credit Act
Residential Tenancies Act
What are the 6 essential elements of a contract?
An offer by one party and its acceptance by the other
The intention of the parties to create legal relations
Valuable consideration
Legal capacity of the parties to act
A genuine consent by the parties
Legality of the objects of the agreement
What are the 4 types of contracts?
Simple Contracts
Contracts under seal
Express and implied contracts
Bilateral and unilateral contracts
What are the 4 types of contract statuses?
Valid
Voidable
Void
Unenforceable
What makes the offer legally binding?
This offer may be written, spoken, or implied. Must be a firm promise to do something or not do something. These are different from an invitation to treat or statements implying information.
Who does the offer apply to?
The offer can be for a specific person, particular group of people or the world at large. If it is offered to the world at large anyone can take up the offer
Why is the communication of the offer important?
It must be brought to the attention of the person which it is made to. Unless the offer is communicated then there is no offer and no contract
When can an offer be revoked?
The offeror can revoke the offer at any time before the acceptance. This must be communicated to the offeree, otherwise the offer is still acceptable
When is there a lapse of offer?
If not accepted in the time stated.
It has not been accepted in reasonable time where no time has been stated.
If a counter-offer has been made, (a request for information is not a counter-offer)
When is the contract accepted?
By spoken, written or by conduct.
It must be communicated.
The exceptions are if it was stated no acceptance was necessary.
Where acceptance is to take the form of performing the act (purchasing something)
Where the postal acceptance rule applies
When is there a joint promise?
Made by two or more people without words indicating that each is bound individually as well as jointly.
Can agreements between husband and wife (and defacto) relationships be enforceable ?
Depends on the situation. This is the same with family or social agreements
Are charitable activities enforceable?
No. if a volunteer is hurt they are not covered unless otherwise stated.
Are all business dealings legal agreements?
Where an agreement is reached in the course of business dealings there is a presumption that the parties intended to create a legal relations. unless otherwise apparent to both parties
What is express exclusion of intention?
Where the agreement includes an express stipulation that it is not intended to give rise to legally enforceable obligations
