Chapter 3 Key Points

Question 1

what is a contract under seal

Answer 1

formal contract in writing which must be witnessed

Question 2

what is a simply contract

Answer 2

any contract that isnt a contract under seal

Question 3

what is a unilateral contract

Answer 3

starts with a unilateral offer which may or may not be accepted, however once accepted the offeror cannot reject the acceptance but is bound by it

Question 4

ways in which a contract may not be fully valid in law

Answer 4

if it is void or voidable

Question 5

what are the essentials for the formation of a valid contract

Answer 5

an agreement (offer and acceptance)
intention to create legal relations
consideration (for simple contracts)
in the form required by law (if any)
the parties must have capacity to contract
contract must not be illegal or against public policy

Question 6

what are the types of terms that terms in a contract can be classified into

Answer 6

express, implied, conditions, warranties

Question 7

what are implied terms

Answer 7

can be implied in fact, by custom or in law

Question 8

what are exclusion clauses in commercial contracts governed by

Answer 8

the Unfair Contract Terms Act 1977

Question 9

what are the exclusion clauses in consumer contracts governed by

Answer 9

the Consumer Rights Act 2015

Question 10

what is a condition

Answer 10

goes to the root of the contract

Question 11

what is a warranty

Answer 11

affects only some minor element of the contract

Question 12

what can lead to a contract being defective

Answer 12

illegality
improper pressure
mistake
misrepresentation
non-disclosure

Question 13

what can a contract be discharged by

Answer 13

performance
breach
frustration
agreement
operation of law

Question 14

what are the main remedies in the law of contract

Answer 14

termination
an action for damages
an action for specific performance
an action for an injunction

Question 15

what are claims for breach of contract governed by

Answer 15

the Limitation Act 1980

Question 16

how long does a claimant have to bring a claim on a simple contract

Answer 16

six years

Question 17

what is privity of contract

Answer 17

a doctrine which restricts the rights and duties created by a contract to the persons who originally made it

Question 18

how can rights under a contract be assigned

Answer 18

by an original party to the contract to another who stands in their place

Question 19

what are the two types of assignment

Answer 19

statutory or equitable

Question 20

how can assignment of insurance contracts occur

Answer 20

assignment of the subject matter of the contract
assignment of the benefit of the contract
assignment of the contract itself

Question 21

what is assignment of the subject matter of the contract

Answer 21

does not carry with it any automatic assignment of the policy in question

Question 22

what is assignment of the benefit of the contract

Answer 22

can be statutory or equitable assignment

Question 23

what is assignment of the contract itself

Answer 23

personal contracts are not freely assignable
life policies are freely assignable because provided the identity of the life insured does not change then there is no change in risk
marine cargo policies are assignable