C. Contract law Flashcards
What is the role of legal consideration in contract formation?
Legal considerations are crucial in contract formation, ensuring agreement´s validity and
enforceability. Legal consideration refers to the exchange of things of value in a legally binding contract.
What is privity of contract?
Privity of contract defines the exclusive legal relationship between parties who have entered
into an agreement, granting them rights and obligations while excluding third parties from
enforcement or liability. This principle underscores direct contractual relationships and restricts legal actions to the involved parties.
What are some different classes of contracts?
Contracts can be classified as a valid (a Agreement enforceable by law), void (Agreement which is unenforceable from the moment of creation), or voidable contract (Agreement that may be rendered unenforceable). A contract can also be unilateral (only one party has to fulfill his obligations) or bilateral (both parties has to fulfill his obligations)
Under which circumstances can a promise to make a charitable donation, for example to the Red Cross, be enforceable?
A promise to donate to a charity like the Red Cross can be legally enforceable if the red cross suffered an promissory estoppel and therefore a loss (defendant made a promise that the plaintiff relied to), or if there is a donation-subscription ongoing.
What is the parol evidence rule?
If parties have a written agreement intended to be the final expression of their deal, evidence of prior agreements usually cannot alter its meaning. Therefore, under the parol evidence rule, aggreements made outside the contract are invalid in court.
What is the Statute of Frauds?
The Statute of Frauds mandates certain contracts to be in writing for enforceability in court. It applies to agreements like real estate sales, or high-value goods sales. Originating from English law, its purpose is to prevent fraudulent claims by ensuring crucial agreements are documented, enhancing reliability and clarity in contracts.
What is the difference between legal remedies and equitable remedies?
Legal remedies involve monetary compensation awarded to the injured party for losses resulting from a breach of contract, aiming to restore the injured party´s position. Equitable remedies, rather focuses on fairness and justice. Equitable remedies are for example injunctions or specific performance.
What is specific performance and when is it available as a remedy for breach of contract?
Specific performance is an equitable remedy for breach of contract where the court orders
the breaching party to fulfill their contractual obligations. It´s typically granted when monetary damages are inadequate and the subject matter is unique or to valuable.
With regard to contract law: What is the UK Sale of Goods Act and the US Uniform Commercial Code?
The UK Sale of Goods Act and the US Uniform Commercial Code (UCC) are key laws governing sales transactions in their respective jurisdictions. The Sale of Goods Act, from the
UK, defines buyer and seller rights, contract terms, and breach remedies. Similarly, the UCC
in the US covers contract formation, warranties, and breach remedies for sales transactions.
Both acts aim to ensure fairness and efficiency in commercial dealings.
What are damages, and what is the function of the test of foreseeability (remoteness)?
Damages in contract law are monetary compensation awarded to a party for losses due to a breach, aiming to restore them to the position they would´ve been in if the contract was fulfilled. The test of foreseeability limits recoverable damages to those reasonably
foreseeable by the breaching party at contract formation, preventing disproportionate liability.
In a written contract, how can the parties agree to limit damages?
Parties in a written contract can limit damages through limitation of liability or exemption
clauses, which define each party´s liability in case of breach. This can involve capping
recoverable damages, excluding certain types of damages, or specifying liquidated damages. However, these clauses must be carefully crafted to ensure enforceability and fairness.
In a contract, in the “dispute resolution” section, what is the difference between “jurisdiction” and “applicable law”?
In a contracts dispute resolution section, jurisdiction refers to the authority of a court to hear and decide disputes from the contract, determining where the case will be heard and
enforced. Applicable law specifies the legal framework governing the contract´s interpretation and enforcement. While jurisdiction dictates the court´s authority, applicable law determines the legal principles applied in resolving the dispute.
