Contract Flashcards
Vitiating factors for contract, what is the word “vitiating” mean?
Void= the law DOES NOT recognize it as a valid contract:
-Incapacity (legal disqualification)
-Mistake
-Illegality
Voidable:
-Misrepresentation
-Duress
-Undue influence
Question:
Signing a contract when he is drunk is which one?
Undue influence
vitiating: destroy or impair the legal validity of.
3 types of misrepresentation:
1. __: ignorant, he himself believes it’s true.
2. __: careless, fail to take reasonable care.
3. __: lied, giving false information knowingly
If the person DID NOT rely on your information, you’re not liable for the misrepresentation.
innocent;
Negligent;
Fraudulent
Contract is __ when below occurs:
-Frustration: something happened that’s not within control of the parties (i.e. govt acquisition)
-Non-performance: contract couldn’t be executed due to terms not satisfied (i.e. subjec to LDAU’s approval- 外国人可否买landed)
-Seller bankrupt
-Buyer died before legal completion (impossibility of performance)
-act of God
-agreement
Discharged
Contract is discharged: means it’s NOT void but one doesn’t need it anymore
Terms of Contract
__: major term in the contract. Party may rescind the contract or claim for damage if breached.
__: minor term in the contract. Party may claim for damage if breached.
Condition;
Warranty
All terms and conditions that comes with a purchase must be given ONSET, meaning what?
Customers must agree to all terms and conditions BEFORE making the payment.
4 types of breaches of contract:
1. Anticipatory: anticipate the breach before it happens (i.e. telling the guy you’ll breach the contract)
2. Actual: anticipatory becomes real
3. Minor: Breach of the __ of the contract
4. Material: Breach of the __ of the contract
Warranty;
Condition
Damages for breach of contract
1. Damages
-liquidated damages (pre-agreed $)
-Unliquidated damages (NOT pre-agreed, COURT decide = Restitution. Court will NOT award punitive damages)
2. Specific performance (NOT apply on service contract)
3. Injunction (NOT apply on service contract) —> Caveat is a form of injunction: Buyer lodge a caveat to prevent Sellers from committing a breach.
Restitution 歸還
Punitive damages 懲罰性賠償
Injunction 禁令
Contract ONLY forms if there’s OACI, which are?
Offer
Acceptance
Consideration
Intention to form legal contract
Lease/Tenancy Created with these conditions:
1. __ possession
2. intention of parties
3. definite term
4. owner’s interest is __.
exclusive possession;
reversion
Lease in equity or legal lease >7 years can be registered with __.
SLA
Types of lease:
Fixed term
__ at will
Periodic
Tenancy at sufferance= holdover tenant
tenancy
habendum
權利範圍, lease commence term and date
reddendum
租約條款, 應付租金, anything concerning rent and $
Lease under equity is express law or implied law?
implied law
Agent is representing the client or representing the EA.
Independent contractor is doing work for who?
himself
Agent agreement formed “by Ratification”
-Agent is NOT FORMALLY APPOINTED and NO express authority was given by the principal.
-Pincipal DID NOT STOP the agent in carrying out tasks such as viewing, negotiation etc. -》 __ authority is assumed to be given to the agent.
-Agent’s appointment/authority is subsequently ratified by the principal.
Ratification is a formal confirmation;
Implied
Agent agreement formed “by Estoppel”
-Agent is NOT APPOINTED and NO express authority was given by the principal.
-Principal 让第三方以为中介代表他
-对第三方来说，中介apparently is authorised by the principal，虽然没有正式的给他authority -》this agent has __ authority to act
Estoppel =不可出尔反尔
Apparent
Plaintiff is who?
Defendant is who?
Plantiff is the person who sues.
Defendant is the person being sued.
In order for the plaintiff to sue defendant on tort of negligence, plaintiff must prove:
1. Defendant owes Plaintiff a “__ of __”
2. He has breached this “__ of __”
3. Plaintiff has suffered “damages”
4. This damage or loss is not too remote (i.e. heart broken, headache) “BUT-FOR TEST”
duty of care
Duty of Care vs. Fiduciary Duty vs. Warranty of Authority
-Duty of Care: have to exercise care when you perform your duty
-Fiduciary Duty: acting the BEST INTEREST for the person
-Warranty of Authority: You need to get the person’s consent before you act upon it
- What duty do you owe to your client?
- What duty do you owe to 3rd party?
- Both Duty of Care and Fiduciary Duty
- Only Duty of Care
Standard of Care is based on which test standard?
Reasonable-Man-Test
What type of people requires HIGHER Standard of Care?
Handicap, illiterate, vulnerable
Tort of defective or dangerous premises- The law requires the building owner to make sure that the building is well maintained such that it doesn’t cause any injuries for people using the building
__ Agency: 3rd party doesn’t know that this person he’s dealing with is the agent, he thought this person is the final person (buyer/tenant)
Undisclosed Agency
MCST and Controller of Residential Property (under SLA) have interests in the property?
Do they have rights to lodge a caveat?
No;
Yes.
Law allows MCST to lodge it without interest because they want to make sure the maintenance fee is paid.
Law allows Controller of Residential Property to lodge it without interest is because foreigners buying restricted property have 5 years MOP, during this 5 years, to prevent them from selling.
What’s the purpose of lodging a caveat?
To be notified that this person who’s not the owner of the property HAS INTEREST in this property.
Ratify means approve to the __ relationship which was formally non existing.
Agency
By Estoppel- what kind of authority?
Apparent/ ostensible (表面上的） authority
Actual authority
-express (can be written/verbal)
-implied (assumed)
Apparent authority (presumed by 3rd party; exist in agency formed by “estoppel” and “ratification”
“Uberrimae fidei” means?
It’s observed between seller and who?
Utmost good faith;
Seller’s agent
Fiduciary duty= trust and confidentiality to client
Does caveat emptor apply to signing of agency agreement?
No. Uberrimae fidei applies. Need to explain clearly the agency agreement signed with client.
Tort of “vicarious” liability, what is vicarious?
For example, estate agents are liable to be sued by clients for negligence committed by their salesperson.
間接的
Breach of warranty of Authority is?
I.e. agent conclude deal “on behalf of the Seller”
When the agent has NO authority and the owner refuses to ratify(= prove). Agent can be sued.
Effective cause of sale 有提到如果你帶一個人去看房子，但他去租了房子，六個月後他回去跟屋主買，這樣可以拿commission嗎？
不能，Effective cause of sale max 3 months
Breach of contract
Legal action must be done so within __ years or else you lose the right to legal action.
6
An unsatisfactory reply from one of the authorities in a sale entitled the option holder to do what?
Annul(廢止）the sale
What are the vitiating (使無效）factors to a contract?
-Void:
-incapacity (10 year old signed it)
-mistake (big enough to affect the value of the property)
-illegality (back dating, loan shark)
-voidable:
-misrepresentation (wrong FACTS, not opinion)
-duress 威脅
-undue influence (no threat but under pressure)
Question:
foreigners signed OTP buying landed without LDAU’s approval is which one?
Illegality
Misstatement: wrong factual information
Misrepresentation: wrong factual information _____________.
That was relied on.
If agent gave a wrong information but the buyer didn’t rely on it, it’s a misstatement.
