contract law 1

Question 1

what is a contract

Answer 1

an agreement between two or more persons that is legally binding

Question 2

are social and domestic agreements legally binding

Answer 2

generally no

Question 3

five essential elements of a contract

Answer 3

agreement, intention to create legal relations, compliance with formalities, consideration and capacity to contract

Question 4

agreement

Answer 4

offer and acceptance of definite terms

Question 5

compliance with formalities

Answer 5

contracts can be oral but are mostly written

Question 6

consideration

Answer 6

promise in exchange for a similar promise from the other party

Question 7

capacity to contract

Answer 7

party must legally be able to enter the contract

Question 8

simple contract

Answer 8

contract that can be made in any form

Question 9

speciality contract

Answer 9

contract that must be in a specific form to be legally enforceable e.g. written/deed

Question 10

unilateral contract

Answer 10

one party makes promise of an action if another party performs a specific action (non obligatory) e.g. reward for lost property

Question 11

bilateral contract

Answer 11

both parties make a promise to each other e.g. buying goods

Question 12

what differentiates an offer from an invitation to treat

Answer 12

an offer is a clear proposal that can be accepted to form a contract, a treat is an invitation to make an offer

Question 13

can an offer be revoked

Answer 13

can be withdrawn anytime before it is accepted

Question 14

what happens if a counter offer is rejected

Answer 14

considered a rejection of the original offer

Question 15

when does an offer lapse

Answer 15

after a specific or reasonable time has passed

Question 16

what is required for acceptance of an offer

Answer 16

acceptance must be unconditional and a positive act

Question 17

positive act

Answer 17

something that a person does openly and intentionally

Question 18

what isn’t considered acceptance in a bilateral contract

Answer 18

silence

Question 19

how must acceptance be communicated

Answer 19

by the offeree or an authorised agent to the offeror

Question 20

pharma soc of gb vs boots

Answer 20

contract is completed when customer pays for goods at counter, not when they put goods in their basket (pharmacist must be there for sale)