Contract 2 - ICLR and Capacity Flashcards

1
Q

When will the courts presume no intention to create legal relations?

A
  1. Domestic situations
  2. Social situations except syndicates or competitions
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2
Q

When will the courts rebut the presumption there is no intention to be legally bound?

A

Unless there is objective evidence the parties did intend to be legally bound - both parties must agree

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3
Q

When do the courts presume there is intention to be legally bound?

A

Commercial situations unless stated ‘subject to contract’

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4
Q

When will someone have capacity?

A
  1. Over 18
  2. Sound mind
  3. Not intoxicated
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5
Q

What are the rules on Minors and capacity and what are the exceptions?

A

1.Contracts voidable
Exceptions
1. Contracts for necessity
2. Employment contracts
3. Contracts of real property however Minors Contracts Act 1987 can request minors to transfer real property back

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6
Q

What are the rules on lacking capacity and intention to be legally bound?

A
  1. Voidable if the other party knew you lacked capacity or were intoxicated
  2. Ratify contract on recovery
  3. Pay for necessities
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7
Q

What are necessities?

A

Suitable to a persons condition of life and to his actual requirements at the time the goods or services are supplied

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