Chapter 6 Flashcards
What is an Agreement?
Takes form of an offer and acceptance, it HAS to take place
What is an Offer?
A promise to perform specified acts on certain terms
What is a Certainty of Offer?
Only a Complete offer can form basis of contract, essential terms must be set out or contract will fail for uncertainty
What is the Invitation to Treat?
Willingness to do business, different from an offer, its the communication/ negotiation stage. Indcates something is available and can be purchased
What is the Process of an offer?
Display the goods (invitation), Take item to register (offer to purchase), Clerk takes payment (acceptance of offer)
What is a Standard Form Contract?
A take it or leave it contract, not subject to bargaining
What is a Revocation?
Offeror can revoke his offer any time before acceptance by notifying offeree, if you offer to keep it open for a set time you can still revoke it unless you receive consideration
What is an Option Agreement?
In exchange for payment offeror is obligated to keep the offer open for a set time, they CANT revoke it
What is a Tendering Contract?
Tenders are viewed as offers to contract A that is offered by the contractor, tender can’t revoke offer, winner would go to contract B with the owner
What is a Lapse?
Expiration of an offer after a specified or reasonable period, consider specifying an expiry date
What happens if there is Death/Insanity?
Offer dies with the offeror/offeree, when someone becomes insane it would no be bound
What is the Communication of Acceptance?
Must communicate by words, by any means that is reasonable, No acceptance until it actually receive
What is the Postbox Rule?
Acceptance is effective at the time of mailing
What is Formalization?
Exact wording of the contract has to be agreed upon, is subject to formal contract
What is a Consideration?
Price paid for a promise, something of value, doesn’t need to be fair
What is a Gratuitous Promise?
A promise which no consideration is given and not legally enforceable
What is a Pre-Existing Legal Duty?
Legal obligation that a person already owes, alterations are not enforceable, need for a new contract
What is a Promise under Seal?
Gone through lots of trouble to accept the offer, doesn’t matter is there is no consideration
What is a Promissory Estoppel?
Someone who replies on gratuitous promise may be able to enforce it, can only be used as a defence to claims made by promise breaker
What is Partial Payment of Debt?
Not enforceable because it is a gratuitous promise, government wants people to move on
What is a Business Agreement?
Intended to be contractual, presumed contracts in market are intentional, presumption is rebuttable -> can fight and say its not
What is a Family Agreement?
Non-contractual, must demonstrate that there was an intention to contract, if no then action will fail
