8 Flashcards
What’s a contract?
An exchange of promises that are legally binding.
What elements must be present between 2 parties agreeing?
- Offer
- Acceptance
- Consideration
- Intention to create legal relations
- Capacity + Legality
What does capacity include in relation to offers?
- 18yrs +
- Sound Mind
What does legality include in relation to offers?
Has to be something legal.
What’re simple contracts?
Contracts that are in any form - written, verbal or implied by conduct.
How must a contract to sell land be done?
It must be in writing for the sale of land.
What’s an offer?
A definite and clear/specific statement of willingness to be bound on specified terms without further negotiations.
What must happen to an offer for someone to form a contract?
The contract must be communicated.
Name 2 examples of thing that are NOT offers
- A mere statement of S/P
- A mere statement of intention to sell
- Invitations to treat
Name 2 examples of Invitations to Treat
- Most Advertisements
- Shop Window Displays - Fisher VS Bell 1961
- Goods on a Shop Shelf
What does it mean when a contract is bilateral?
Both parties promise to each other.
What does it mean when a contract is unilateral?
One party makes offer.
Only one promise made.
Offerer will do something in return if the offeree performs specific act.
Name 3 ways of terminating an offer
- Revocation (withdrawal)
- Rejection
- Death/lapse of time
What’s revocation in relation to contract offers?
Withdrawing the offer.
It can happen any time before acceptance even if the offered agreed to keep the offer open.
Must be communicated too.
What’s rejection in relation to contract offers?
Rejecting an offer outright or by counter-offers.
A counter-offer will bring in new terms.
Questions aren’t counter-offers.
What’s death/lapse of time in terms of contract offers?
A fixed time has passed or a reasonable time as at the courts discretion.
What’s acceptance?
The unqualified and unconditional assent to all terms of the offer.
Can be in-person, written or by conduct - offerer can specify mode of acceptance.
What’s the key rule of acceptance?
It isn’t effective until it is communicate by the offeree to the offerer
What’s the postal rule of acceptance?
Acceptance is communicated when the letter is posted - not when received
When is acceptance received face to face or a phone call?
Instantaneous
When is acceptance received for email, fax, telephone message during normal business hours?
When received.
When is acceptance received for email, fax, telephone message outside normal business hours?
When business next opens.
What’s consideration in relation to contract law?
Act or promise to do something of value or the price paid for a promise.
What’s the rule of consideration for simple contracts?
All simple contracts must be supported by consideration from both parties.
