CH 6 Flashcards
What is the starting point for all contracts
An offer
what is a promise to enter a contract on specified terms as soon as it is accepted
an offer
what is an invitation to treat
A communication expressing a wish to do business—no legal consequences.
It is not considered an offer.
It is only treated in law as an expression of willingness to do business
give an example of an invitation to treat
Most advertisements and displays of goods in stores are invitations to treat.
what is a take it or leave it contract
a standard form contract ( car lease, bank loans: non-negotiable )
what does the law expect people to do in terms of standard form contracts
The law expects people to take care of themselves.
who is an offeror and an offeree
Offeror: The person who makes an offer
Offeree: The person to whom an offer is made.
CASL?
Canada Anti Spamming legislation
what does the CASL regulate
Regulates sending of Commercial Electronic Messages (CEMs)
Email, text message, social media
Includes offers to purchase or sell goods and services, or provideinvestment or gaming opportunities
what is needed to send a CEM without being considered spam
Permission to send the CEM must have been received.
what is the penalty for spamming
Penalty up to $10 million for an organization, $1 million for an individual
5 ways that an offer can be terminated
1Revocation
2Lapse – Expiration of an offer after a specified or reasonable period.
3Rejection – The refusal to accept an offer.
4Counteroffer – Turning down an offer and proposing a new one in its place.
5Death or insanity
what is revocation
- The withdrawal of an offer, anytime before acceptance.
- The offeree needs to be notified.
- Upon revocation, the offer ceases to exist.
- In some cases, offerors can revoke offers despite the promise to leave the offers open for a set period.
what is an options agreement
An agreement where, in exchange for payment, an offeror is obligated to keep an offer open for a specified time. It is a separate contract that may or may not lead to the acceptance of the offer.
Commonly seen in real estate
If there is no expiry date specified on an offer, when is the expiration date
it is a reasonable time, judged case by case
when does an offer come into existence
when it is accepted
what are some things that can be put in a contract
exchange of something of value such as goods or services. can also be not to do something, such as not to pursue a lawsuit
what is a promise under seal
Once a seal is affixed, it is evidence of serious intent and acknowledgment that the contract is enforceable.
what does common law presume when doing business agreements
the intention to contract is presumed
what does common law presume in cases of family agreement s
promises between families are non contractual
what are vague commitments to buy or sell
they are invitations to treat
what are vague commitments to buy or sell
they are invitations to treat
describe the case of Bigg v Boyd Gibbins Ltd
For the purpose of entering into a contract, parties may negotiate considerably. Difficulties arise when one party believes that a contract has been concluded while the other party disputes that conclusion.
Communication over email made disagreements over weather a contract was formed or not.
the court decided that a contract did form
Revocation in the Context of a Firm Offer
explain how this works
if a promise to keep an offer open is payed, there cannot be any revocation
But if there is a promise to keep an offer open, but there is no payment received, then there can be revocation of the offer even before the promised deadline.
describe the case of Dickinson v Dodds
there was a promise to keep an offer open, but this offer was revoked. plaintiff sued but lost because the defendant was allowed to revoke offer.
what is an options agreement
whereby the offeree pays the offeror to keep the offer open for the specified time.
destroy card
ujyguykuv
how is a call for tenders different from an invitation to treat (to Tyler’s understanding)
calling for tenders means that you are subject to the rules of “the call”. if you set out a price to do a project, you must do the project at this price if accepted. You cannot change the price after accepting the call. you also cannot revoke after a specific period of time specified in “the call”.
please see ch 6 Revocation in the Context of a Tendering Contract ,, if this doesn’t make sense
two ways that an offer can lapse
an expiry date
within a reasonable period of time
what are the risks involved in rejecting an offer
The risk in rejecting an offer is that it may never be renewed by the other side.
what is a risk involved in a counteroffer
Whenever a party makes a counteroffer, they jeopardize their chance of being able to accept the original offer.
what happens to the offer when Someone who makes an offer and then, subsequently, becomes insane
the offer would not be bound as a general rule
what happens when an acceptance to an offer is “lost in the mail”
Acceptance “lost in the mail” is called the “postbox rule,” and does not invalidate the acceptance.
if a website displaying goods or services for sale not only indicates the price but also indicates that the item is in stock, is this considered an offer?
yes it could be considered an offer without clear wording to the contrary. If the website was only advertising its products then it is not an offer.
give an example of how an offer can be communicated electronically
for example by clicking the “I agree button”
give an example where parties have reached an agreement through offer and acceptance, but is not an enforceable agreement.
formalization. businesses may not wish to be bound in any way until the contract’s formal language is agreed to and the formal contract signed.
explain consideration
both parties must give up something of value in order to have an enforceable contract.
what is a gratuitously promise
a promise without consideration
what nulls a gratuitous promise
a promissory seal
Explain pre existing legal duty
When parties to a contract agree to alter the contract in a way that benefits only one of them, the traditional legal perspective says that the alteration is unenforceable unless there is fresh consideration.
explain rebuttable presumption
The common law recognizes this reality through the rule stating that in the marketplace, the intention to contract is presumed.
what does the law primarily protect in contract law
the law protects consumers not commercial businesses
what four things must a contract be
-an agreement composed of an offer and an acceptance
-complete
-deliberate
supported by mutual consideration
what is something law doesn’t care about
in terms of contract law and commercial settings
the law doesn’t care about commercial policy
is a price tag an offer
no
Is a promise to pay more for performance of a pre-existing legal duty generally enforceable?
The answer depends on jurisdiction. In Ontario and jurisdictions choosing to follow Ontario, the leading decision is Gilbert Steel. This case clearly states that such a promise is not enforceable. In New Brunswick, British Columbia, and jurisdictions willing to follow their approach, such a promise is enforceable provided it was voluntarily given.
