Contract Flashcards
What are the essential elements needed to establish a valid contract?
Offer and Acceptance, Consideration, Intention to Create Legal Relations
Each element must be satisfied for a contract to be valid.
Define Offer in the context of contract formation.
A clear, definitive proposal
Example: Carlill v Carbolic Smoke Ball Co.
What distinguishes an offer from an invitation to treat?
An invitation to treat is not a definitive proposal
Example: Pharmaceutical Society of Great Britain v Boots.
What is required for Acceptance in contract law?
Must be unequivocal and communicated to the offeror
Example: Entores Ltd v Miles Far East Corp.
What is the Postal Rule in contract law?
Acceptance is valid when posted, not received
Example: Adams v Lindsell.
What must be exchanged between parties for Consideration to be valid?
Something of value
Consideration must be sufficient but need not be adequate.
What is the rule regarding Past Consideration?
Generally not good consideration
Example: Re McArdle.
What is the presumption regarding social and domestic agreements?
Presumed not to have legal intention
Example: Balfour v Balfour.
What is the presumption regarding commercial agreements?
Presumed to have legal intention
Example: Esso Petroleum Co Ltd v Commissioners of Customs & Excise.
Define Express Terms in a contract.
Terms clearly stated by the parties.
What are Implied Terms?
Terms implied by law, statute, or the courts
Example: Liverpool City Council v Irwin.
What are Conditions in a contract?
Major terms that go to the root of the contract
Example: Poussard v Spiers and Pond.
What are Warranties in the context of contract terms?
Minor terms that do not allow for termination but damages
Example: Bettini v Gye.
Define Innominate Terms.
Terms where the effect of the breach depends on the severity of the consequences
Example: Hong Kong Fir Shipping v Kawasaki.
What are Exclusion Clauses?
Clauses that attempt to limit or exclude liability.
How can Exclusion Clauses be incorporated?
By signature, by notice, or through previous dealings
Examples: L’Estrange v Graucob, Parker v South Eastern Railway.
What does the Unfair Contract Terms Act 1977 (UCTA) control?
The use of exclusion clauses in certain contracts.
What is Misrepresentation in contract law?
A false statement of fact that induces a party to enter into a contract.
What are the types of Misrepresentation?
- Fraudulent
- Negligent
- Innocent
Examples: Derry v Peek, Hedley Byrne v Heller.
What are the possible remedies for Misrepresentation?
- Rescission
- Damages
Example: Royscot Trust Ltd v Rogerson.
What constitutes a Mistake in contract law?
Where both parties have made an error regarding a fundamental fact.
What are the types of Mistake?
- Common mistake
- Mutual mistake
- Unilateral mistake
Example: Bell v Lever Bros.
Define Duress in contract law.
Threats of violence or economic pressure
Example: The Universe Sentinel.
What is Undue Influence?
Improper pressure exerted on one party
Example: Royal Bank of Scotland v Etridge.
