Chapter 1: Introduction Flashcards
What is the definition of a contract
A legally binding agreement document
What are the 4 roles of a contract
- Determine the validility of a contract
- Resolving disputes between parties
- Identify the breach of the contract
- Provide remedies
What should one determine the nature of a contract, what do we need to look for when starting a contract?
- Determine the offeror and offeree
- Determine the expressed intention instead of actual intention
What are the 7 variety of situations does contract law deal with
- Family relationships
- Club membership
- Landlord and tenant
- Commercial transactions
- People with equal bargaining powers
- People with uneqaul bargaining powers
- International contracts
What is the fundamental theory that contract law uses
Contract law is based on the Laissez-faire ideology, that all parties enter into contract by will/choice and in their own terms
Are agreements or contracts enforceable by law
Only contracts are enforceable
What are the 4 elements/ingredients that create a contract
- Offer
- Acceptance
- Consideration
- Intention to Create Legal Relationship
How can we decide if the parties have reached an agreement
In a normal interaction with a reasonable man
Even if a parties intentions were not real, as long as he made it that a reasonable man would believe him, it would be equally bound to both sides
How is an agreement reached? Is it objectively or subjectively decided?
method?
Objectively decided, not subjectively. Meaning there should clearly stated (written/signature) or where intention was made clear
What are the 2 ways courts use to find the offer and acceptance
Reasoning Forward
* traditional appraoch: finding the offer and acceptance then lead to conclusion
Reasoning Backward
* Decide on the appropriate solution then move back to find the offer and acceptance to justify the decision
How many offers/contracts are there, and what are they
Unilateral contract
* promise for an act
* does not need to be communicated to the offeror
Bilateral contract
* consist of offer & invitation to treat
* Offer is promise for a promise
* ITT is the expression of willingness to enter into a contract to negotiate on terms with the intention to form a new contract at a later stage
Centrovincial Estates v Merchant Investors [1983]
Facts: Claimants (landlord) accidentally wrote $65,000 when supposed to bill $ 126,000. Before they could withdraw the D accepted. C said there’s no legally bidning contract
Held: Slade LJ - Offeror under a bilateral contract can withdraw an unambiguous offer.
Where it was merely a mistake and the offeree would not have known it was a mistak either
Gibson V Manchester City Council [1979]
Facts: D selling houses to tenants, handed out brochures to tenants. C filled brchure with purchase price and applicable mortgage terms
City council responded that the “may” sell the house at the price stated. Didn’t want to sell in the end
Held: HOL said contract aws not valid. The words “may be prepared to sell” made the difference.
Claimant also needed to have made a formal application to buy
