Contract Flashcards
CONSIDERATION
What the requirements for the exception to past consideration to apply?
- Act must have been done at promisor’s request
- Both must have understood that the act was to be rewarded with payment/benefit
- Act must have been capable of being legally enforceable if had been promised in advance
DURESS AND UNDUE INFLUENCE
What are the two types of undue influence?
- Overt acts of pressure or coercion (only needs to be a factor, not decisive)
- Relationship of influence/ascendancy of which unfair advantage is taken
DURESS/UNDUE INFLUENCE
What are the 3 components of economic duress?
- Lack of practical choice
- Caused by illegitimate pressure
- But for duress, agreement would not have been entered into
DURESS/UNDUE INFLUENCE
When is a creditor (3P) put on constructive notice in the event of potential undue influence re the matrimonial home? What is the result of this?
Creditor put on notice when:
1. Transaction on face not to financial advantage of party concerned; AND
2. There is substantial risk that influencing party has committed a legal/equitable wrong entitling influenced party to set aside transaction
Creditor must take reasonable steps to satisfy themselves that influenced’s agreement has been properly obtained - creditor has constructive notice
BREACH OF CONTRACT CLAIMS
What kind of losses can a party claim for following a breach of contract?
Hadley v Baxendale
A party in breach will be held responsible for losses which are foreseeable/likely in the ordinary course of things (ie arise naturally) and/or in the contemplation of the parties at the time of contracting
ILLEGAL CONTRACTS
What approach will the court take to an attempt to enforce a contract whose subject matter is illegal?
Court will adopt a discretionary approach, considering whether allowing recovery would harm the integrity of the legal system
ACCEPTANCE
What is the general rule relating to acceptance?
Acceptance takes place the moment it is received by the offeror
