Contract

Question 1

Three Elements Contract

Answer 1

1) Offer and Acceptence

2) Intention to create legal relations

3) Consideration

Question 2

Acceptance by Post: Implicit Exclusion

Answer 2

Need to be notified in writing or otherwise told of acceptence

Question 3

Promise to pay more

Answer 3

Binding if exceeded or confers practical benefit

Question 4

When will a promise to accept less be binding?

Answer 4

Early payment or promises to provide something in return

Or promissory estoppel

Question 5

Implied terms (SGA): bars to rejection

Answer 5

1) Acceptence

2) s.13 and s.14 breach so light would be unreasonable to reject goods

Question 6

Rejection CRA

Answer 6

If satisfactory quality, fit for purpose or sale by description

1) Short-term right to reject and full refund (30 days but if perishable no longer than reasonably be expected to last)

2) Right to repair or replacement

3) Right to price reduction or final right to reject and get partial refund to reflect use of goods

Other rights if do not conform anytime within 6 months of delivery taken to not conform on that day (unless perishable argued as being conforming)

Reasonable service/work: repeat performance or price reduction

Reasonable time: only price reduction

Question 7

Rules on Exclusion

Answer 7

1) Incorporation

2) Construction

3) Statutory Controls: UCTA or CRA

Question 8

UCTA Effect

Answer 8

1) No limitation or exclusion for death or personal injury

2) Reasonableness (fair and reasonable to include taking into account all circumstances such as what parties knew or ought to have known at that point in time)

3) Schedule 2 Guidelines for reasonableness

a) Bargaining Power
b) Inducement and opportunity to avoid
c) Knowledge of existence and extent
d) If excludes compliance whether reasonable to expect compliance

Question 9

CRA Exclusions

Answer 9

Cannot exclude or restrict CRA implied terms or make a right or remedy subject to disadvantage or restrictive conditions

Question 10

Test Penalty Clause

Answer 10

Out of all proportion to any legitimate interest of the innocent party

Question 11

Two types of losses in contract

Answer 11

1) Expectation

2) Reliance

Question 12

Seller breached setting up competition what can you claim

Answer 12

Damages to compensate loss for opportunity to negotiate a fee to release seller from covenant UNLESS there is other ascertainable loss

Question 13

Restitution

Answer 13

1) Total Failure of Consideration (recover fully)

2) Compensation for work done or goods supplied (reasonable sum for work done or goods supplied)

Question 14

Doctrine of Complete Performance

Answer 14

1) Divisible Obligation

2) Substantial Performance (slight defect)

3) Wrongful Prevention

4) Voluntary Acceptance of Part Performance

Question 15

Types of Misrepresentation

Answer 15

1) Fradulent

2) Negligent

3) Innocent (no damages but ability to rescind if not barred)

Question 16

Bars to Recession

Answer 16

1) Affirmation

2) Undue Delay (from when it should have been discovered unless fraud then it when it was discovered)

3) Innocent purchaser

4) Impossible to substantially restore goods or property

Question 17

Effect of misrepresentation (fraud or negligence)

Answer 17

Damages (out of pocket)

Voidable can rescind or affirm

Question 18

Duress

Answer 18

Improper or illegitimate threat

Makes contract voidable no remedy of damages

Question 19

Undue Influence

Answer 19

Goes beyond what is required as acceptable; or

Where one party is in the position to influence another and takes advantage of this position

Question 20

Presumed Undue Influence

Answer 20

1) Fiduciary Relationships or one of Trust and Confidence; AND

2) Transaction call for an explanation

Question 21

Types of Mistakes

Answer 21

1) Common Mistake (must be fundamentally different)

2) Cross-purpose Mistake (no contract)

3) Unilateral Mistake