Chapter 10 Flashcards
The consideration for a sale must be what?
Money - otherwise the contract is one of barter or exchange not sale
What is a contract?
An agreement between 2 parties which is intended to give rise to legal relations
For any contract to be made in English law it hats have some essential elements, what are they?
- Intend to create legal relations
- Agreement between the parties signified by offer and acceptance
- The agreement is supported by consideration of is contained in a deed
What is the need for consideration or a deed?
To put legal limits on the enforceability of agreements and to observe certain formalities
What is an offer?
The expression of willingness to contract
What is an invitation to treat?
An invitation to others to make an offer
Name the ways an offer can be terminated
- Termination
- counter-offer
- Revocation
- Lapse of time
- Failure of condition precedent
- Death
True of false
The person accepting the offer can change the terms of an offer?
False as that causes the offer to lapse
What are the two types of conditions for a conditional contract?
Promissory - where one of the parties has the power to fulfil
Contingent - (condition precedent or condition subsequent)
Describe the 2 contingent conditions
Condition precedent - not pithing their power to bring about condition • suspends the contract until the occurrence of the event
Condition subsequent - Provides a previously binding contract must come to an end on the occurrence of a specific event
What are the terms of a contract?
Are the matter that the parties have agreed on - they are a matter of fact (the essential elements of the contact are a matter of law)
Terms cannot be interfered with by either party unilaterally
What does the retention of title clause do?
states that the seller continues to be the legal owner of the goods with the legal ownership only passing when the good are paid for
What is the effect of a contact
The outcome which the contract is designed to achieve
What is the assignment of a contract?
A transfer to another person the rights and benefits of the contract
What is a novation?
The process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract
A number of vitiating factors can make a contract invalid, an invalid contract is either void or voidable, explain when I mean by this
Void - contract is effectively traded as never having been formed
Voidable - contract is valid and enforceable unless the innocent party chooses to cancel the contract, making it void
What are the main vitiating factors that validate / invalidate a contract?
- Contract being illegal / contrary to public policy
- Mistake / misinterpretation when contract was formed (can claim damages here)
- There was undue influence when contract was formed
What does it mean for a contract to be discharged?
When the parties have no obligations outstanding under it
Can be discoed lawfully by:
• Performance
• Agreement
• Frustration (circumstances beyond one’s control / change in circumstances)
• Breach of contract - actual = fails to carry out duties & Anticipatory = one party refuses to carry out obligations
what are the remedies for a breach of contract?
- Damages (are compensatory not punitive - considered by court)
- Specific performance (the party HAS TO complete their duties as under the originally agreed contract)
There are 2 types of damages - what are they?
- Liquidated - stipulate that a certain sum must be paid should the contract be breached
- Unliquidated - Worked out by court following the breach
