Contract 3 - ICLR & Capacity Flashcards

1
Q

What is Intention to Create Legal Relations?

A

An intention to enter into a contract with legal ramifcations
β›“οΈπŸ‘¨β€βš–οΈ

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2
Q

When are assumptions as to ICLR made?

A
  • Commercial: there’s intention πŸͺ
  • Domestic: no intention πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦
    Both can be rebutted
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3
Q

What does the term β€˜subject to contract’ mean?

A

Not binding until formal execution

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4
Q

Who has capacity?

A
  • over 18 πŸ§”
  • sound mind 🧠
  • not suffering from factor ruling out capacity e.g. drunkenness πŸ€ͺ🍻
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5
Q

What is the rule on minors and capacity, and exceptions?

A

Person not bound by contract entered into under age of 18 even if other side didn’t know or they lied πŸ€₯ except:
1. Contract concerns necessaries (if for their benefit, pay a reasonable price) πŸͺ₯πŸͺ™
2. Contract of employment, apprenticeship or education (if for their benefit) πŸ‘·β€β™‚οΈπŸ§‘β€πŸ«πŸ˜

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6
Q

When does someone lack capacity?

A

Where they’re unable to make a decision for themselves at time contract is made

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7
Q

What is the effect of entering a contract with someone lacking capacity?

A
  • Person w/o capacity still remains liable to pay a reasonable price for necessaries. πŸͺ₯πŸͺ™

In any other case, position is binding unless ⛓️:

  • person proves they didn’t understand what they were doing πŸ€ͺ
    AND
  • other side knew this 😈
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8
Q

How does drunkeness affect capacity?

A

If so drunk, can’t understand what they’re doing:

  • have to pay reasonable price for necessaries πŸͺ₯πŸͺ™
  • not bound by any other contract they make 🍻πŸ€ͺ🏎️
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9
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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