Chapter 3 - New Questions Flashcards
In a bilateral contract, what is required for the contract to be enforceable?
A commitment from one party to complete an act.
What happens to an offer if the offeree makes a counter-offer?
The original offer is terminated.
What must occur for a contract to be formed if the offeror has promised to keep the offer open for a certain period?
The offeree must pay a sum of money or give something of value to keep the offer open.
If an offer is made to a group of people, what happens when one person accepts the offer?
The offer is terminated for everyone.
What must be true for an acceptance of an offer to be valid under English law?
It must match the terms of the offer exactly.
Under what condition does the ‘posting rule’ apply to an acceptance?
The offeror must have specified that acceptance must be communicated by post.
How can an acceptance be communicated if the offer specifies a particular method of acceptance?
The acceptance must strictly follow the specified method.
What happens if parties expressly state that their agreement is not intended to be legally binding?
The agreement is not legally binding.
In which situation is a promise to pay for services rendered likely to be enforceable?
When the services were provided with an understanding that payment would be made.
How can a gratuitous promise become legally binding in English law?
By being made under seal.
Which scenario illustrates the concept of ‘nominal consideration’?
Selling a house for a nominal fee, such as £1.
How did the court rule in the High Trees case regarding the reduction of rent during the wartime period?
The court only enforced the reduced rent for the wartime period.
Which contracts must be executed by deed?
A lease for more than three years
What type of contract requires a ‘note or memorandum’ in writing, but not necessarily a document created at the time of the contract?
Contracts of guarantee
Which type of contract can a minor repudiate to avoid liability?
A lease
What is the legal status of a contract for luxuries made by a minor?
It is not binding on the minor.
What happens to a contract made by a chartered corporation if it is not authorized or is prohibited by the corporation’s charter?
The contract remains valid.
Under the ultra vires doctrine, what can happen if a contract is beyond the powers of a statutory corporation?
The contract is automatically invalid and unenforceable.
How has European legislation impacted the ultra vires rule for companies?
It has provided that contracts cannot be challenged on the basis of being outside the company’s powers.
In the context of a company formed by registration under the Companies Acts, where are the powers of the company expressed?
In the company’s memorandum of association.
In the case of a statutory corporation, where are its powers expressed?
In the statutory regulations under which it was created.
Which of the following best describes the impact of European legislation on the ultra vires rule for companies?
It has reduced the impact of the ultra vires rule on the validity of contracts.
