Chapter 2

Question 1

4 examples of contracts that must be in writing

Answer 1

1. Bill of exchange
2. Regulated Consumer Credit Agreements
3. Transfers of land (must be evidenced by Deed, known as specialty contracts)
4. Guarantee

Question 2

Example of void and voidable contract

Answer 2

void= not contract= e.g. illegal purpose or when company acts outside power to enter contract

Voidable= can be set aside by choice= e.g. made by under duress, misled or minor

Question 3

what is an unenforceable contract and give example

Answer 3

When it cannot be enforced if a party does not fulfill e.g. not in correct form or transfer of property not in writing

Question 4

What is not an offer

Answer 4

1. Invitation to treat- inviting someone to make offer to you
2. Supply of info
3. not specific
4. terminated offer

Question 5

What is a terminated offer

Answer 5

Rejection and counter
Revocation- withdraw offer before acceptance and must be communicated
lapse of time
failure of precondition

Question 6

Who is offeror and offerree

Answer 6

Offeror= Seller
Offerree= Buyer

Question 7

What are exceptions to revocation

Answer 7

Deposit and offer made to whole word

Question 8

What is acceptance

Answer 8

assent to terms of offer
can be oral, written, implied by act unless specified
must be communicated and involved an act

Question 9

What is the postal rule

Answer 9

acceptance is complete as soon as letter is posted unless stated it needs to be received by offeror

Question 10

What is executed/executory considerations

Answer 10

Executed- performed act in exchange for promise e.g. paying goods when delivered

Executory- promise given in exchange for promise e.g. promise to pay for goods when delivered

Question 11

What are rebuttal presumptions and give two examples?

Answer 11

given when legal relationships are not obvious (CD)

1.Domestic agreement= presumed no intention to be legally bound in social or domestic arrangement

can be rebutted by showing that there was clear evidence that parties did not create legal relation or if spouse not living together happily at time

2. Commercial agreement- presumed there is an intention to enter legal relation in a commercial agreement

can rebut presumption if contrary intention is clearly expressed in agreement

Question 12

Define ‘privity of contract’

Answer 12

Those part of contract and have given value in exchange can enforce terms

Question 13

What are implied terms

Answer 13

Not expressly mentioned but part of contract. This can be due to standards/norms, courts can add if necessary, laws