CHAP 2 CONTRACT LAW Flashcards

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1
Q

Form of contract

A

Can be in any form - simple
Maybe written, oral, from conduct of parties.

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2
Q

Exceptions of form of contract

A

BOE, Cheques, transfer of share, cotract of sale of land must be in writing

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3
Q

What is not an offer

A

An invitation to treat is not an offer
E.g an advertisement is an invitation to treat not an offer
However it would be an offer if no further negotiations were intended or expected. And advertisers made it clear that they would pay money to anyone complying with the terms of the adv.

Window display: not an offer of sale, but an invitation to treat.

Goods on shop shelves

Tender: asking parties to submit terms in which they are willing to carry out work or supply foods. It is an ITT because offeror and other party is free to acceot or reject

A mere statement of sp in response to a request for information is not an offer

Auction: adv of auction is not an offer. auctioneer asks for bids is an invitation to treat.

Cross offer: two parties makes identical
Offer to each other without knowing that the other has made an offer. No binding contract

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4
Q

Tender exception

A

If invitation contains that purchaser will require certain quantity of goods then acceptance of tender will form a contract

If purchaser only may require goods, acceptance gives rise to standing offer. In this situation, no compulsion on purchaser to take any goods.

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5
Q

Termination of an offer

A

Terminated by revocation
Rejection
Lapse

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6
Q

Revocation

A

By offeror can be made at any time before acceptance, even if the offeror has agreed to keep offer open.

Must be communicated to the offeree
Can be communicated by the offeror or reliable 3rd party

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7
Q

Rejection

A

By the offeree may he outright or by means of a counter offer

Not mere request for further details does not constitute a counter offer

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8
Q

Lapse

A

On
Death of offeror unless offeree accepts in ignorance of the death
Death of offeree
Failure of a condition. If made on condition
After a expiry of a fixed time (if any) or after reasonable time

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9
Q

Acceptance

A

Unqualified and unconditional assent to all the terms of the offer

Can oral, written or by conduct

The offeror can stipulate a particular mode of acceptance

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10
Q

Communication of acceptance

A

Not effective until it’s communicated to the offeror

In a fax, telex or telephone, message is received during normal b.hrs that is when communicated even read later

If received outside business hrs then deemed to be communicated when the business next opens

Offeror can expressly or impliedly kahe k mujhe communication ki zaroorat nh
But silence cant be acceptance

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11
Q

Postal rule

A

Acceptance is completed as soon as the letter is posted

Howver it only applies if:
Letter properly stamped, addressed and posted
Post is reasonable method of communication

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12
Q

Exception to postal rule

A

This doesnot apply if offeror clearly states that he must receive the acceptance

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13
Q

Consideration

A

Every contract must contain consideration but speciality contract do not require consideration unless the terms of the agreement require it

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14
Q

Types of consideration

A

Executory consideration (abhu nahi dena)
Given where there is an exchange of promises to do something in future
Eg goods on COD

Executed: abhi goods ke against cash diya
Shopping ki aur paise diye at a time

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15
Q

Adequate consideration

A

There is no need for each party’s consideration to be equal in value

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16
Q

Sufficient consideration

A

Must have some monetary value
Capable in law of amounting consideration

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17
Q

Past consideration

A

Is insufficient and therefore not valid

Whollu performed before the other party gives his primos

Ghar decor krdiya baad me paise diye aur kaha yeh lo

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18
Q

Part payment

A

Pinnels case state that payment of smaller sum does not discharge liability of the greater amount however some exceptions are there

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19
Q

Exceptions to part payment

A

4 exceptions
1. Part payment made by 3rd party
2. compostion with creditors (creditors agree to accept some sum )
3. accord - both parties agree freely to part payment
4. satisfaction - payment at earlier date, at diff place, diff currency

20
Q

Promissory estoppel

A

Fairness and justice. Prevents a person to going back his promise to accept a lesser amount.
e.g. during war years. If war years ended then during war year rent cannot be recovered. iske baad full le sakte ho pr in between ka nahi le sakte

21
Q

Doctrine of promissory estoppel principles:

A

-Must be existing contract between parties
- claimant must voluntarily waive his rights
- intention that defended shud rely on claimant
- defedent must alter their legal position because of the waiver

22
Q

Demerits of doctrine of estoppel

A
  1. It is a shield not a sword
  2. Only have suspensory effect
  3. Party seeking to use it as a defence must have acted fairly previously in his dealings
23
Q

Privity of contract

A

acquire rights and obligations under it
can sue and be sued on it

24
Q

Exception to privity of contract

A

Third party bhi enforce krskti hai if contract uske benefit k lye kiya gaya ho even he is not a party to the contract and he expressly identified by his name or description

do parties ne apas me contract kiya aur second ne third se contract kiya (constrcution) so in this case collateral contract wali part bh privity hai

25
Q

restrictive covenant

A

Rleated to land runs even if it sold to another party. he or she has to comply with the restrictions

26
Q

Insurance law

A

Allows third party to take the benefit of the contract. Life insurance pays to the third party even after the death of policy holder

27
Q

trust law

A

Allows beneficiary to enforce a trust

28
Q

Agency law

A

Allows the agent to make a contract between his principal and third party even though thirty party might be unaware that he (A) is acting as an agent

29
Q

Intention to create legal relationship

A

normally legal realtion hoga. pr nahi hua toh agreement k hisaab se hoga

30
Q

Domestic and social agreement

A

Not legally bound contracts

31
Q

Agar proper agreement hai even domestic context toh its an intention to create a legal relation

A

okay

32
Q

Binding in honor only

A

tere mere beech ki baat hai to legally bound nahi

33
Q

letter of comfort

A

international contracts
assure contracting party that parent comp will provide its subsidairy all of the resoruces to execute the contract however parent company cant be sued. no legal effect

34
Q

Terms of the contract

A

Statement written or oral made during the the negotiations leading to a contract, may be term of the contract

35
Q

Representation

A

something said by the offeror in order to induce the offeree to enter into the contract. may or may not be the term of the contrac

36
Q

if rep becomes term

A

Innocent party has remedies for breach of term as well as for misrepresentation

37
Q

If rep does not become term

A

innocent party will have remedies only for misrepresentation which are based on equitable remedies

38
Q

Terms

A

may be express or implied

express are included in the contract by one or both parties

39
Q

Types of terms

A
  1. COnditions
  2. Warranties
  3. Innominate terms
    Determines the type of remedies awarded
40
Q

Conditions

A

Damages, dicharge or both

41
Q

Warranties

A

incidental to the main purpose of the contract
damages only

42
Q

innominate terms

A

neither con nor warran

if trivial - damages only
treated as if warranty

if serious - damages, discharge or both . treat as if it were condition

43
Q
A
44
Q

Without reserve auction

A

K reserve nahi hoti koi price
Har soorat sale hoga so yeh offer hojati hai

45
Q

Invitation to tender

A

Invitation (purchaser asks) suppliers 5 k mujhe tender do 5 shelves pe saman rkhne hain

46
Q

Tender

A

Given by offerors (jo goods denge)

47
Q

Action for price (CL)

A

Action for price (simple action instead of paying price)
Limits: property passed on from seller to buyer

Sum due after anticipatory breach may not be recovered unless they affirm the contract