Chapter 6

Question 1

What is an Agreement?

Answer 1

Takes form of an offer and acceptance, it HAS to take place

Question 2

What is an Offer?

Answer 2

A promise to perform specified acts on certain terms

Question 3

What is a Certainty of Offer?

Answer 3

Only a Complete offer can form basis of contract, essential terms must be set out or contract will fail for uncertainty

Question 4

What is the Invitation to Treat?

Answer 4

Willingness to do business, different from an offer, its the communication/ negotiation stage. Indcates something is available and can be purchased

Question 5

What is the Process of an offer?

Answer 5

Display the goods (invitation), Take item to register (offer to purchase), Clerk takes payment (acceptance of offer)

Question 6

What is a Standard Form Contract?

Answer 6

A take it or leave it contract, not subject to bargaining

Question 7

What is a Revocation?

Answer 7

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

Question 8

What is an Option Agreement?

Answer 8

In exchange for payment offeror is obligated to keep the offer open for a set time, they CANT revoke it

Question 9

What is a Tendering Contract?

Answer 9

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

Question 10

What is a Lapse?

Answer 10

Expiration of an offer after a specified or reasonable period, consider specifying an expiry date

Question 11

What happens if there is Death/Insanity?

Answer 11

Offer dies with the offeror/offeree, when someone becomes insane it would no be bound

Question 12

What is the Communication of Acceptance?

Answer 12

Must communicate by words, by any means that is reasonable, No acceptance until it actually receive

Question 13

What is the Postbox Rule?

Answer 13

Acceptance is effective at the time of mailing

Question 14

What is Formalization?

Answer 14

Exact wording of the contract has to be agreed upon, is subject to formal contract

Question 15

What is a Consideration?

Answer 15

Price paid for a promise, something of value, doesn’t need to be fair

Question 16

What is a Gratuitous Promise?

Answer 16

A promise which no consideration is given and not legally enforceable

Question 17

What is a Pre-Existing Legal Duty?

Answer 17

Legal obligation that a person already owes, alterations are not enforceable, need for a new contract

Question 18

What is a Promise under Seal?

Answer 18

Gone through lots of trouble to accept the offer, doesn’t matter is there is no consideration

Question 19

What is a Promissory Estoppel?

Answer 19

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

Question 20

What is Partial Payment of Debt?

Answer 20

Not enforceable because it is a gratuitous promise, government wants people to move on

Question 21

What is a Business Agreement?

Answer 21

Intended to be contractual, presumed contracts in market are intentional, presumption is rebuttable -> can fight and say its not

Question 22

What is a Family Agreement?

Answer 22

Non-contractual, must demonstrate that there was an intention to contract, if no then action will fail