Chapter 2: Summary

Question 1

What are the three types of bad contract?

Answer 1

Void
Voidable
Unenforceable

Question 2

What is a void Contract?

Answer 2

A void contract is no contract at all.

Question 3

When is a contract void?

Answer 3

An illegal contract

Question 4

What is a voidable contract?

Answer 4

A voidable contract can be set aside by the injured party.

Question 5

When is a contract voidable?

Answer 5

Lack of capacity.

Lack of free will.

Contract made due to misrepresentation.

Question 6

What is an unenforceable contract?

Answer 6

A valid contract but can’t be enforced.

Question 7

When is a contract unenforceable?

Answer 7

Contract is not in the correct form.

Question 8

What are the elements of a contract?

Answer 8

Agreement = Offer & Acceptance

Consideration

Intention

Question 9

What is the definition of an offer?

Answer 9

Definite promise to be bound on specific terms.

Made by an offeror to an offeree.

Question 10

Who can be an offeree?

Answer 10

One person, group of people, or the whole world.

Question 11

What are not classed as an offer?

Answer 11

Invitation to treat

Statement of Intention

Request for Information

Question 12

What are the five ways you can an offer be terminated?

Answer 12

Rejection

Counter-offer

Lapse

Revocation

Failure of condition

Question 13

What are the requirements of acceptance of a contract?

Answer 13

Must be communicated unless offeror dispenses with that requirement.

Question 14

What is not qualified as acceptance?

Answer 14

Offeror cannot dictate that silence will be acceptance.

Question 15

In what form can acceptance take?

Answer 15

Can be verbal, in writing or inferred by conduct.

Question 16

What contracts is there presumed intention to create legal relations?

Answer 16

Commercial

Question 17

What contracts is there no presumed intention to create legal relations?

Answer 17

Social/Domestic

Question 18

What is meant by consideration?

Answer 18

What each party gives/agrees to give.

Question 19

What are the four types of good consideration?

Answer 19

Executed

Executory

Sufficient not adequate

Forbearance/waiver of existing rights

Question 20

What does executed consideration mean?

Answer 20

An act performed at the time of agreement.

Question 21

What does executory consideration mean?

Answer 21

A promise to do something in the future.

Question 22

What are the three types of not good consideration?

Answer 22

Past.

Performance of an existing statutory duty.

Performance of an existing contractual duty.

Question 23

What is meant by past consideration?

Answer 23

Already performed at time of agreement.

Question 24

What are the exceptions to performance of an existing statutory duty not being good consideration?

Answer 24

Statutory duty exceeded.

Question 25

What are the exceptions to performance of an existing contractual duty not being good consideration?

Answer 25

Contractual duty exceeded. New contract with third party.

Question 26

What is the part payment problem (waiver of existing debt)?

Answer 26

Payment of a lesser sum in satisfaction of a greater sum cannot be any satisfaction for the whole sum.

Question 27

What are the two different types of terms in a contract?

Answer 27

Express & Implied

Question 28

What is meant by expressed terms in a contract?

Answer 28

Specifically agreed Must be clear

Question 29

When can terms in a contract be implied?

Answer 29

By custom By statute By the courts

Question 30

What is privity of contract?

Answer 30

Only the parties to the contract can enforce/be sued under it.

Question 31

What are the three exceptions to privity of contract?

Answer 31

The Contracts (Right of Third Parties) Act (1999) Trust Agency