Contract

Question 1

Approach of court to illegal contracts

Answer 1

Old approach: automatically void and unenforceable
New approach: discretionary considering whether recovery would harm the integrity of the legal system

Question 2

Rules relating to acceptance by instant method (e.g. email)

Answer 2

Acceptance takes place at moment it is received by offeror

If acceptance is not received:
* Not offeror’s fault: no contract
* Offeror’s fault + offeree reasonably beleives acceptance is communicated: contract (offeror prevented from saying they did not receive acceptance)

Question 3

When is a contract voidable for duress?

Answer 3

Contract is entered into as a result of actual or threatened violence.

Duress vitiates the contract

Question 4

When is a contract for minor binding?

Answer 4

GR: Not binding UNLESS

1. Contract for necessaries (includes food, clothing, goods, sometimes things which are not absolute essentials NEVER trading); or
2. Contract for employment, education or training + for minor’s benefit (e.g. uses salary to pay education NOT agent)

Question 5

When can a 3rd party enforce a contract term?

Answer 5

1. Contract includes a term which purports to confer a benefit on them; or
2. Identified by name, member of a class or answers a particular description (+ nothing to contrary)