Chapter 5 - Contract Law Flashcards
Define the term contract
Enforceable mutual understanding or agreement between 2 or more capable parties to perform some lawful act for legal consideration
Consists of actionable promise(s)
State the six elements of a contract.
- Mutual agreement
- Competent parties
- Consideration
- Proper and legal subject matter
- Intention to be bound
- Enforceable form
What are examples of Contract types
- Simple Contract
- Formal Contract
- Bilateral Contract
- Unilateral Contract
- Valid Contract
- Void Contract
- Illegal contract
When may consideration not be a legal requirement of a contract?
Where no consideration is present in the form of promises or other mutual exchange of
something valuable, a contract is only valid when sealed.
The sale or disposition of land must be evidenced in writing. Why?
This is a requirement of the Statute of Frauds.
What is the difference between a mutual mistake and a unilateral mistake?
A mutual mistake refers to a situation in which the parties made different mistakes
A unilateral mistake is a mistake made by only one party to a contract and the other party
knows or must be taken to know.
Cite a situation where non est factum might be used.
In situations with a unilateral mistake, the court may give relief to the party that made the mistake and call the contract void when it is obvious that this party was not aware of what he or she was agreeing to
occurs when one party generally relies on another person. It often affects people who are infirm, illiterate or suffering from some disability who require help in
understanding the documents
If one party to a contract misrepresents some fact material to the contract during the
negotiations, what rights does the other party to the contract have?
The party who was misled has the right to
rescind or continue with the contract. However, they should act within a reasonable time
period.
List the methods in which a contract may be discharged.
- Performance
- Agreement
- Contract dissolution
- Frustration
- Operation or law
- Breach of contract
What is the difference between a frustrated contract and a contract with self-induced
frustration?
Discharge by frustration:
• Covers the occurrence of unforeseen events after contract has been entered into
Self induced frustration:
• Party deliberately brings a situation where the contract cannot be performed and then claims frustration
Under what circumstances is Specific Performance likely to be granted by the courts?
Typical case is transfer or land where party refuses to go through with sale even though they have contracted to do so
What remedies are available for Breach of Contract?
- Damages
- Quantum meruit (Payment for work completed)
- Equitable remedies
What is the Statute of Frauds
A law that requires certain types of contracts to be evidenced in writing in order to be valid and enforceable
How may a contract be impeached?
- Mistake
- Duress
- Undue Influence
- Misrepresentation
Explain the tendering process
- Invitation and description of work
- Contract documents
- Restrictions and qualifications
- Bonding or bid deposits
- Closing date and tender opening
- Disclaimer
