Chapter 2 - Contract Flashcards
What elements are required to create a contract?
Offer, acceptance, consideration and intention to create a legal relationship.
Define offer.
An expression of willingness to contract on certain terms. This can be made orally, in writing or by conduct.
What is an invitation to treat?
Inviting someone to offer. For example an advert in a paper.
How can an offer be terminated?
Revocation by the offeror, rejection by the offeree, lapse of time or acceptance.
When will revocation take place?
When it is actually received by the offeree.
What is a counter offer?
Where the offeree responds to an offer with different terms. The effect of this is that the original offer is rejected and the counter offer becomes the new offer.
What is acceptance?
The agreement to all terms, given originally in writing or by conduct. It must be communicated to the offeror.
What are the rules on consideration?
- Must move from the promisee
- Must not be past
- Does not need to be adequate but must be sufficient. I.e. doesn’t matter how much money is changing hands it just matters there is some.
What is the presumption for legal relations with family and business agreements?
Family - no intention to create legal relations
Business - there is intention
This can be rebutted.
What is a term?
Determines what each party are contractually obliged to do.
How can terms be incorporated into a contract?
Implied by statute, custom or courts
Or
Express i.e. in writing.
What is the different types of terms?
Condition - go to the root of the contract. If breached can end the contract.
Warranties - less important. If breached the innocent party can claim damages.
What is an innominate/ intermediate term?
A term that does not fit into the definition of a condition or warranty so the court will decide its status.
What is the difference between a void and voidable contract?
Void - never existed
Voidable - will only end if one of the parties decides to do so
What are the 3 types of misrepresentation?
Fraudulent, negligent and innocent.
When is the right to rescission lost?
- the contract is affirmed
- a reasonable time has passed
- the parties cannot be restored to their original places
- an innocent third party has acquired the right to the subject matter of the contract.
How can a contract be discharged?
- Performance
- Breach
- Agreement
- Frustration - an event that makes the performance of a contract impossible.
What are the remedies for breach of contract?
Damages, specific performance, injunction and consumer rights act 2015.
