Contract formation

Question 1

what are the four essential features of a contract?

Answer 1

offer, acceptance, consideration, intention

Question 2

what four factors may affect the validity of a contract?

Answer 2

lack of capacity, absence of free will, illegality, misrepresentation

Question 3

when is a contract unenforcable?

Answer 3

wrong form

Question 4

if a contract is illegal…

Answer 4

it is void i.e does not exist at all

Question 5

what is a voidable contract?

Answer 5

a contract which one party may set aside. property transferred before avoidance is usually irrecoverable from a third party.

Question 6

a contract for land must always be in…

Answer 6

writing

Question 7

what is an ITT?

Answer 7

invitation to treat- i.e adverts, goods displayed in windows and on the shop shelf. note to self- it cant actually be accepted as is not an offer. vague statements designed to encourage offers are ITT’s

Question 8

example of statement of intention?

Answer 8

holding an auction

Question 9

when must revocation be received?

Answer 9

must be communicated BEFORE acceptance

Question 10

what is battle of the forms?

Answer 10

where there are lots of offers and counter offers- important to establish who offered last and who accepted

Question 11

what can acceptance be via?

Answer 11

words, writing, conduct but NOT silence

Question 12

in instantaneous methods of communication, acceptance is deemed to occur…

Answer 12

when acceptance is received.

Question 13

unilateral acceptance is…

Answer 13

i.e buying something in a shop

Question 14

what is consideration?

Answer 14

the element of value in an agreement

Question 15

executory

Answer 15

promise for promise valid

Question 16

executed

Answer 16

an act already performed in return for a promise valid

Question 17

past

Answer 17

invalid- consideration supplied before an agreement has been formed

Question 18

consideration need not…

Answer 18

be adequate but must be sufficient

Question 19

when cant a consideration be increased

Answer 19

if you are already contracted to do it , if already performing existing statutory duty

Question 20

when can a consideration be waivered?

Answer 20

giving something you had never originally promised, paying the debt in advance payment made by a third party

Question 21

when can spouse presumption be rebutted?

Answer 21

if they are separating

Question 22

doctrine of privity

Answer 22

can only sue or be sued on a contract that you are privy to

Question 23

exceptions to doctrine of privity

Answer 23

agency relationships, common law and stat exceptions i.e. motor insurance claims per road traffic act 1988. the contracts rights of third party act 1999 whereby the third party had rights provided: they are expressely identified in the contract in nmae class or descrip AND the contract confers a benefit on them

Question 24

what may become an express term…

Answer 24

a statement of fact made before the contract which induces someone to enter into it

Question 25

oral evidence

Answer 25

shouldnt contradict written terms UNLESS it can be shown that written terms weren’t meant to include everything

Question 26

are parties entitles to leave a terms to be decided at a later date?

Answer 26

yes, unless no provision for its clarification

Question 27

implied terms…

Answer 27

business efficiacy (28th floor man), statute, custom (unless inconsistent with express terms).