CH3 FORMING CONTRACTS Flashcards
Intention to create legal relations is defined as…?
The parties intention to enter into an agreement and eventual contract. In this contract, both parties are responsible for fulfilling their obligations, and corresponding duties to the other party.
Do social agreements constitute an intention to be bound?
Social agreements are rarely seen as contracts because there is no intention to create legal relations. This is because of the nature of the casual setting and everyday social interactions (ie. I will take Bob to the next concert I go to is simply a declarative statement)
Do domestic agreements indicate an intention to create legal relations?
Courts reluctant uphold domestic agreements because assumed actions related to familial ties rather than contractual obligations.
Ie. a wife caring for her sick husband. Parties can clarify contract (ie. separation agreement). See Balfour v Balfour.
What are commercial agreements and do they have an intention in creating legal relations?
Agreements that are binding in honour only and do not necessarily stipulate actions/omissions from parties. Frowned upon by court because can enable parties avoid normal legal obligations*
What are collective agreements and what is a direct application of them?
Agreements are written contracts regulating the relationship(s) and obligations of employer and employees. May be used b/w employers and trade unions!
When is a contract brought into operation?
A contract may have suspensive OR resolutive.
-Suspensive contracts are when obligations only become enforceable when an uncertain event occurs
-Ie. a job offered that will gain when pass medical test
-Ie. will buy a house as soon as is inspected and clear of mould
-Resolutive contracts have obligations existing already, but if an uncertain event occurs, the obligations comes to an end.
-Ie. person hired and asked pass driving test to continue working there. Fail to do so and are sacked.
What is the role of “uncertainty” in the making of a contract?
Nullity of contract should there be contractual uncertainty. Also employed w fear parties alter meaning of contract to benefit them (often to detriment of other party..)
