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SQE 1 FLK 1 (B.K) > Contract 1.1 - Agreement > Flashcards

Contract 1.1 - Agreement Flashcards

1
Q

Must contracts be in writing?

A

Only contracts for:
- Guarantees
- for sale or other disposition or land
- consumer credit agreements
- And Deeds

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2
Q

What is a deed?

A
  • A type of contract that must be signed, sealed and delivered to be valid
  • Used when NO consideration is being exchanged
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3
Q

Deed is a type of contract- what are the requirements?

A
  • In writing
  • makes clear it is intended as deed
  • signed by both parties in presence of witness
  • delivered (“delivered as deed on X date”)
  • No consideration is being exchanged
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4
Q

What is a simple contract?

A
  • Every other contract that is NOT a deed
  • Requires consideration
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5
Q

What 3 things are required to form a binding contract?

A
  • Offer & acceptance 🤝
  • ICLR 📄
  • Consideration 💵
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6
Q

What’s the difference between a bilateral and unilateral contract?

A
  • Bilateral: both parties assume an obligation to each other 👉👈
  • Unilateral: one party makes an offer in terms which call for an act to be 👈 performed by one or more other parties
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7
Q

What are the requirements for a valid offer?

A
  1. Clear & certain 🔍
  2. Display an intention to be bound (unequivocal acceptance) 📄💡
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8
Q

What is an invitation to treat and 5 examples of it?

A

The 1st step in negotiations that can’t be accepted to form a binding contract
1. Ads (not where there is a unilateral offer) 🎥
2. Displays of goods 🎁
3. Invitation to tender 👀👤
4. Auctions 👨‍⚖️
5. Websites 💻

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9
Q

When is agreement made for self-service shops?

A

Offeror = customer
Offeree = storekeeper
Agreement made when scanned through

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10
Q

When will an invitation to tender NOT be treated as an invitation to treat?
👤📄

A
  • Where the ITT expressly contains an undertaking to accept highest or lowest bid 👨‍⚖️
  • It’s a form of unilateral contract 👈
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11
Q

When would there be a binding contractual obligation to consider tenders?

A
  • Tender solicited from specified parties known to them; 👋
  • absolute deadline for submission; 📅
  • absolute conditions for submission 📄
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12
Q

What happens with a ‘without reserve’ auction where the auctioneer refuses to sell to the highest bidder?

A
  • Auctioneer sued for breach of unilateral contract: promise auction is without reserve 👈
  • Highest bona fide bidder entitled to damages but NOT the goods (as this was dictated by a bilateral contract) 💷
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13
Q

How can an offer come to an end?

A
  1. Rejection - counter-offer is rejection 🤬
  2. Lapse - not in time prescribed or not within a reasonable time ⏱️
  3. Revocation- any time before acceptance- must be communicated (if by post- moment received by offeree)
  4. Termination by operation of the law
    - death of offeror or offeree
    - destruction of subject matter
    - illegality
    - failure of any condition of offer
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14
Q

For unilateral contracts, when can revocation take place?

A
  • Prior to completion of completed act

But..
- For ones made to the whole world, it’s effective where offeror takes reasonable steps to bring revocation to attention of all who may have read it 🌎👣
- Where it’s been partly performed & they are willing/able to complete, revocation not effective 🫥❌

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15
Q

What are the requirements for valid acceptance?

A
  1. Only offeree/authorised agent can accept 🫵
  2. Acceptance is unqualified - mirror image ☺️
  3. Valid method (if method prescribed) 📝
  4. Communicated to offeror - effective from time communicated: for post, time it was properly posted; for instantaneous means, when received by offeror 📮
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16
Q

When does the postal rule apply?

A

Where acceptance delayed/lost in post acceptance applies from when the acceptance is posted, not when it reaches the offeror

Does Not Apply:
- Disapplied by offeror 🙅
- Not reasonable; 🥴
- Incorrectly addressed; 📩
- Letters revoking offers; 😬

17
Q

If acceptance was not received and the offeree was at fault, what is the consequence? And if offeror at fault? And if nobody at fault?

A

Offeree: no contract
Offeror: contract prevails
Nobody: no contract

18
Q

If both sides try to use own standard forms for contract, which are used?

A

Last one to make offer on their terms (with out it being rejected) wins/ last before performance

Prevail Clause
- Means clause stating that their terms will apply
- rarely effective as cancelled out by counter offer

19
Q

When is there an intention to create legal relations?

A

Re-Buttable Presumption against
- domestic situations
- social situations

Re-buttable presumption for
- commercial situations

20
Q

Can you rebutt presumption of intention to create legal relations?

A
  • Objective evidence
  • if commercial context
  • where friends/family enter race or competition together

Cannot rebut
- if one party knows other party had no such intentions

21
Q

How can you rebutt presumption of intention to create legal relations?

A
  • Clear & unambiguous evidence to contrary
  • Can be rebutted in contract itself (ie. “subject to contract” or “binding in honour only”.)
  • Oral statement in anger may be enough
22
Q

When does a minor have capacity to enter contract?

A

Contract for Necessary goods/services
- suitable to the conditions in life of the person concerned;
- suitable to their actual requirements at time of sale and devilry.

Contract for Employment
- if terms are to their benefit

Certain contracts for acquisition of permanent interest in property
- unless they expressly repudiate contract

23
Q

What happens if minor enters contract without capacity?

A

Voidable
- may return property if considered just and fair
- can ratify contract once 18

24
Q

When is someone mentally in-capable of entering contract?

A

Means they are unable to:
- understand the relevant information
- retain the relevant information
- use the relevant information; or
- communicate the decision
- Intoxicated

25
Q

What happens if a contract is entered by someone lacking metal capacity?

A
  • Contract voidable if other party knew they lacked capacity.
  • Can ratify upon recovery

Exception
- Contract entered into for necessary goods/services at a reasonable price

26
Q

What are the rules for someone entering contract whilst intoxicated?

A

Same rules as metal incapacity

27
Q

When will revocation take place?

A

Offerer can revoke offer any time before acceptance.

Revocation will take effect upon communication to offeree (ie. when woman listens to the rejection voice note)

28
Q

What happens when an auctioneer does not sell to the highest bidder in a without reserve auction?

A
  • The auctioneer should have accepted the highest bid
  • There is NO sales contract
  • Auctioneer is liable in damages to the bidder- breach is unilateral contract
  • No cause of action against seller

SQE 1 FLK 1 (B.K) (16 decks)

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