Contract Law - 1 Flashcards
What is a contract?
Agreement between two or more persons to do or refrain from doing, something in exchange for something of value
What are qualities of contracts? (3) Written or verbal? What are the binding promises defined by?
Can be written or verbal. Terms of contract - who, what, where, when, how define binding promises of parties to the contract
What are the 7 essentials of an enforceable contract? (Contract agreement, clarity, lawful, legality, consideration, capacity, formalities)
- Agreement between parties (at least 2)
- Terms of agreement must be certain (no miscommunication)
- Agreement must be lawful
- Parties must intend to create legal relations (no black market sh)
- Promise must buy the promisor’s promise by giving consideration (something of value given in exchange for something else of value)
- Parties must have the capacity to enter into a contract
- Must comply with requisite formalities
What is the difference in awarding damages in breach of contract vs tort
_______ __ _______ —> 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)
Unilateral contract (what are the 2/3 aspects of a unilateral contract?)
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
Examples of unilateral contracts(3)
- Crime stoppers reward ad
- lost item reward
- lost pet reward
What does a bilateral contract entail that a unilateral contract doesn’t?
- involves 2 promises
- acceptance must be communicated for the contract to be completed
Agreement (what is the essential equation?)
Offer + Acceptance = _____________
Invitation to treat + examples
Invitation to make an offer (ex. Advertisements, flyers, realtor’s FOR SALE). Does NOT result in a contract
Firm offer (& mailbox ex)
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.
Grainger & Son v Gough (wine company +invitation to treat)
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
What is accceptance (when referring to offers)?
Unconditional assent/agreement to all the terms of the o fifer.
Both - acceptance can be expressed verbally and in writing, or even implied by conduct.
Can acceptance be expressed verbally or in writing?
The offeree is said to have rejected the offeror’s offer and made a counter offer. (Counter-offer destroys original offer)
What happens if an offered adds a new term to a contract?
No, unlike counter offers, requesting form ore info does not affect the offer, which remains open for acceptance.
Does requesting for information destroy an offer?
Stipulation (in the acceptance of an offer)
The offerer specifies the precise time, place, and manner in which acceptance must be communicated.
No, contract is not complete,
Is a contract complete if I can’t hear the person accepting my offer?
Mailbox rule (contract law)
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.
What are the 7 conditions where an offer can come to an end?
- Acceptance
- Rejection
- Counter-offer
- Lapse of time
5 No time period is mentioned (reasonable) - Failure of a condition subject to which the offer was made (ex. Subject to inspection)
- Death of the offeror
Bradbury v. Morgan (death of an offeree)
- there was previously a contract
- offeree died but gave no notice to offeror
- thus, the contract was still valid
Revocation
Cancelling or terminating the offer
No, you cannot revoke an offer after acceptance is completed.
Can you revoke an offer AFTER acceptance is completed?
Offeror revoking an offer despite promising to keep it open
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)
