Chapter 2: Summary Flashcards
Contract formation
What are the three types of bad contract?
Void
Voidable
Unenforceable
What is a void Contract?
A void contract is no contract at all.
When is a contract void?
An illegal contract
What is a voidable contract?
A voidable contract can be set aside by the injured party.
When is a contract voidable?
Lack of capacity.
Lack of free will.
Contract made due to misrepresentation.
What is an unenforceable contract?
A valid contract but can’t be enforced.
When is a contract unenforceable?
Contract is not in the correct form.
What are the elements of a contract?
Agreement = Offer & Acceptance
Consideration
Intention
What is the definition of an offer?
Definite promise to be bound on specific terms.
Made by an offeror to an offeree.
Who can be an offeree?
One person, group of people, or the whole world.
What are not classed as an offer?
Invitation to treat
Statement of Intention
Request for Information
What are the five ways you can an offer be terminated?
Rejection
Counter-offer
Lapse
Revocation
Failure of condition
What are the requirements of acceptance of a contract?
Must be communicated unless offeror dispenses with that requirement.
What is not qualified as acceptance?
Offeror cannot dictate that silence will be acceptance.
In what form can acceptance take?
Can be verbal, in writing or inferred by conduct.
What contracts is there presumed intention to create legal relations?
Commercial
What contracts is there no presumed intention to create legal relations?
Social/Domestic
What is meant by consideration?
What each party gives/agrees to give.
What are the four types of good consideration?
Executed
Executory
Sufficient not adequate
Forbearance/waiver of existing rights
What does executed consideration mean?
An act performed at the time of agreement.
What does executory consideration mean?
A promise to do something in the future.
What are the three types of not good consideration?
Past.
Performance of an existing statutory duty.
Performance of an existing contractual duty.
What is meant by past consideration?
Already performed at time of agreement.
What are the exceptions to performance of an existing statutory duty not being good consideration?
Statutory duty exceeded.
What are the exceptions to performance of an existing contractual duty not being good consideration?
Contractual duty exceeded.
New contract with third party.
What is the part payment problem (waiver of existing debt)?
Payment of a lesser sum in satisfaction of a greater sum cannot be any satisfaction for the whole sum.
What are the two different types of terms in a contract?
Express & Implied
What is meant by expressed terms in a contract?
Specifically agreed
Must be clear
When can terms in a contract be implied?
By custom
By statute
By the courts
What is privity of contract?
Only the parties to the contract can enforce/be sued under it.
What are the three exceptions to privity of contract?
The Contracts (Right of Third Parties) Act (1999)
Trust
Agency
