Chapter 6 (LR 5) Flashcards
Contract (how is it created):
Set of promises (regarding rights and obligations) made; enforced by the law. Created by offer and acceptance of said offer.
Consensus:
Says both parties in a contract must agree and should meet their common intention.
Offeror:
Person making offer
Offeree:
Person accepting or rejecting the offer.
Offer:
Tentative promise including the terms
Invitation to treat:
Inviting a person to make an offer to contract e.g. advertisements to offer a quote for some service that can be provided.
Does a contract have to be written?
No; it can be oral as well. As long as it is communicated effectively.
Is a person entitled to an offer if they are unaware of it prior to it being “completed” e.g. lost dog example
No.
Standard-form contracts
Take-it-or-leave-it contract used. Used to efficiently expedite contracts. Offeree has no bargaining power
Compare standard-form contracts for businesses vs other individuals
For most individuals, unusual or harm terms must be brought to their attention. In a business contract, both parties are responsible for reviewing the contract.
What presumption can be made with a signature on a contract?
You have agreed to all terms and conditions.
Lapse:
Termination of an offer when not excepted in a reasonable time, or if either party dies or become insane before acceptance.
Notice of revocation
An offeror may revoke an offer at any time before acceptance and must provide notice.
Option (exercising an option):
exception that prohibits revocation; contract to keep offer open for specified time for a sum of money.
Rejection and counter-offer:
A party makes a new offer of their own, making the original offer invalid.
What are the limitations of an offer’s acceptance, and how must acceptance be communicated.
Unconditional; must be communication with (positive) words or actions
What is an exception to using positive words or actions to agree to an offer.
If the offeror asks you to complete a task and you do so, that is equivalent to agreeing to the offer (a unilateral contract; cannot be revoked once performance has begun).
The four questions to analyse when a contract was made:
- who made contract
- when contract was comm.
- when and whom accepted offer
- when acceptance was comm.
When a transaction is made at a distance, at what time is acceptance confirmed (snail mail vs some other method)
Snail mail: when dropped in the mail (unless different terms are made in the contract)
Other method: when mail is accepted (arrives in inbox)
Revocation by post is effective only when ___.
Received by offeree.
How is the jurisdiction whose laws apply to a contract decided (snail mail vs other method)?
Where contracted is accepted.
Snail mail: Place where acceptance is dropped in the postbox
Other method: Where the offerer receives the acceptance.
Bilateral contract:
Promises are made and both parties are bound to perform later.
Promisor:
Person who is under obligation to fulfull a promise.
Promisee
Person with right to performance in a contract.
How are online contracts form (name an exception):
Once the terms of the contract are communication, the offeree is bound once they click ‘I accept’ on their computer. The exception is if the site is designed so that the website will send a confirmation to the offeree to finalize the contract.
Terms of a contract are enforceable only when they do not lack ___
certainty, clarity, etc.
Consideration:
price someone pays for promise of another.
Promise of forbearance
Postponing a promise but promising to make up for it.
Gratuitous promise
Promise without consideration; one made without getting anything in return (not legal contracts)
Three requirements of valid consideration:
- specific but not necessarily adequate
- with reference to present and future promises
- not related to past consideration
Are courts required to assess the adequacy of consideration?
No.
Past consideration:
A gratuitous benefit previous bestowed upon a promisor.
When A has a contractual duty to B, any extra promise made by B to A to perform that obligation is ___ because A was contractually___
non-binding; bound to perform.
