Contract Law - 1

Question 1

What is a contract?

Answer 1

Agreement between two or more persons to do or refrain from doing, something in exchange for something of value

Question 2

What are qualities of contracts? (3) Written or verbal? What are the binding promises defined by?

Answer 2

Can be written or verbal. Terms of contract - who, what, where, when, how define binding promises of parties to the contract

Question 3

What are the 7 essentials of an enforceable contract? (Contract agreement, clarity, lawful, legality, consideration, capacity, formalities)

Answer 3

1. Agreement between parties (at least 2)
2. Terms of agreement must be certain (no miscommunication)
3. Agreement must be lawful
4. Parties must intend to create legal relations (no black market sh)
5. Promise must buy the promisor’s promise by giving consideration (something of value given in exchange for something else of value)
6. Parties must have the capacity to enter into a contract
7. Must comply with requisite formalities

Question 4

What is the difference in awarding damages in breach of contract vs tort

Answer 4

_______ __ _______ —> put claimant in the position he would have been if the contract had been performed (like Shafik hiring for painting services. Paid 400 extra bc breach of contract. Shafik received 400 from court.

______ —> Award damages to make the victim whole (100% financially)

Question 5

Unilateral contract (what are the 2/3 aspects of a unilateral contract?)

Answer 5

1) One-sided promise (Promisor expects from the promise action)
2) You don’t need to communicate that you’ve accepted the offer
3) Action of the other party indicates acceptance

Question 6

Examples of unilateral contracts(3)

Answer 6

• • Crime stoppers reward ad
• lost item reward
• lost pet reward

Question 7

What does a bilateral contract entail that a unilateral contract doesn’t?

Answer 7

• involves 2 promises
• acceptance must be communicated for the contract to be completed

Question 8

Agreement (what is the essential equation?)

Answer 8

Offer + Acceptance = _____________

Question 9

Invitation to treat + examples

Answer 9

Invitation to make an offer (ex. Advertisements, flyers, realtor’s FOR SALE). Does NOT result in a contract

Question 10

Firm offer (& mailbox ex)

Answer 10

Offer must be clear — cannot say “I’m thinking about selling”, it must be communicated clearly.

Ex. Putting it in the mailbox is not communicating. Only communicated when the mail list received.

Question 11

Grainger & Son v Gough (wine company +invitation to treat)

Answer 11

Wine company listed prices. Court decided that these prices were an invitation for customers to make an offer, NOT a firm offer. —> Acceptance of invitation to react does NOT result in a contract.

Because wine company does not have unlimited catalogue of wine to choose from. Thus, it would be unreasonable to assume a contract was formed

Question 12

What is accceptance (when referring to offers)?

Answer 12

Unconditional assent/agreement to all the terms of the o fifer.

Question 13

Both - acceptance can be expressed verbally and in writing, or even implied by conduct.

Answer 13

Can acceptance be expressed verbally or in writing?

Question 14

The offeree is said to have rejected the offeror’s offer and made a counter offer. (Counter-offer destroys original offer)

Answer 14

What happens if an offered adds a new term to a contract?

Question 15

No, unlike counter offers, requesting form ore info does not affect the offer, which remains open for acceptance.

Answer 15

Does requesting for information destroy an offer?

Question 16

Stipulation (in the acceptance of an offer)

Answer 16

The offerer specifies the precise time, place, and manner in which acceptance must be communicated.

Question 17

No, contract is not complete,

Answer 17

Is a contract complete if I can’t hear the person accepting my offer?

Question 18

Mailbox rule (contract law)

Answer 18

An offer is considered accepted the moment the offeree mails the letter, rather than when the offeror receives the letter. This can be overrided if the offeror stipulates that acceptance is only when he offeror receives the letter.

Question 19

What are the 7 conditions where an offer can come to an end?

Answer 19

1. Acceptance
2. Rejection
3. Counter-offer
4. Lapse of time
   5 No time period is mentioned (reasonable)
5. Failure of a condition subject to which the offer was made (ex. Subject to inspection)
6. Death of the offeror

Question 20

Bradbury v. Morgan (death of an offeree)

Answer 20

• there was previously a contract
• offeree died but gave no notice to offeror
• thus, the contract was still valid

Question 21

Revocation

Answer 21

Cancelling or terminating the offer

Question 22

No, you cannot revoke an offer after acceptance is completed.

Answer 22

Can you revoke an offer AFTER acceptance is completed?

Question 23

Offeror revoking an offer despite promising to keep it open

Answer 23

Defendant (Mr. Dodds) wrote to the plaintiff (Mr. Dickinson) with an offer to sell his house. He promised his offer would be open to him until Friday. On Thursday, Mr. Dodds accepted an offer from a third party. Mr. Dodds informed Mr. Dickinson that there was no more offer.

The court said that there was no binding contract, so Mr. Dodds could have revoked that offer anytime before there is acceptance (since there was no deposit/consideration)