Chapter 3 Key Points Flashcards
what is a contract under seal
formal contract in writing which must be witnessed
what is a simply contract
any contract that isnt a contract under seal
what is a unilateral contract
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
ways in which a contract may not be fully valid in law
if it is void or voidable
what are the essentials for the formation of a valid contract
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
what are the types of terms that terms in a contract can be classified into
express, implied, conditions, warranties
what are implied terms
can be implied in fact, by custom or in law
what are exclusion clauses in commercial contracts governed by
the Unfair Contract Terms Act 1977
what are the exclusion clauses in consumer contracts governed by
the Consumer Rights Act 2015
what is a condition
goes to the root of the contract
what is a warranty
affects only some minor element of the contract
what can lead to a contract being defective
illegality
improper pressure
mistake
misrepresentation
non-disclosure
what can a contract be discharged by
performance
breach
frustration
agreement
operation of law
what are the main remedies in the law of contract
termination
an action for damages
an action for specific performance
an action for an injunction
what are claims for breach of contract governed by
the Limitation Act 1980
how long does a claimant have to bring a claim on a simple contract
six years
what is privity of contract
a doctrine which restricts the rights and duties created by a contract to the persons who originally made it
how can rights under a contract be assigned
by an original party to the contract to another who stands in their place
what are the two types of assignment
statutory or equitable
how can assignment of insurance contracts occur
assignment of the subject matter of the contract
assignment of the benefit of the contract
assignment of the contract itself
what is assignment of the subject matter of the contract
does not carry with it any automatic assignment of the policy in question
what is assignment of the benefit of the contract
can be statutory or equitable assignment
what is assignment of the contract itself
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
