Contract law

Question 1

A decree of specific performance

Answer 1

Is an order to carry out the contract

Question 2

An injunction

Answer 2

Is an order to stop

Question 3

Rescinded contract

Answer 3

If a contract has a defect such as being made under duress or undue influence or having made a misrepresentation, parties can be put back into their pre-contractual position

Question 4

A legally binding contract can be discharged, i.e. come to an end, by various means:

Answer 4

Question 5

Law reform (frustrated contracts) act 1943

Answer 5

This act makes no attempt to define what frustration is. It simply deals with the consequences. It’s two main objectives are to allow for the recovery of money paid and the compensation for partial performance

Question 6

Positive criteria
The law requires that the five positive criteria are satisfied in order to be able to distinguish between an agreement on a contract:

Answer 6

Question 7

Termination of an offer

The offer can be dealt with in different ways:

Answer 7

– Acceptance
– rejection
– revocation
– lapse of time
– death of offeror

Question 8

Rules relating to acceptance include:

Answer 8

– While the offer is still alive
-Mean made in writing, orally or even, in certain circumstances, by conduct
- must be absolute and unqualified
– Must be communicated to the offeror

Question 9

Exceptions to the general rules of acceptance:

Answer 9

• Where the dealings between the parties are by means of the post
• where acceptance has been waived by the offeror
• acceptance must be communicated by unauthorised person
  Except must be made in the way stipulated by the offeror

Question 10

The definition of consideration:

Answer 10

Consideration in law, is something of value (in the eyes of the law) given in exchange for an act or promise of the other party

Question 11

Rules of consideration

The judges have decided that consideration needs to be present in a simple contract

Answer 11

– Consideration must be legal
– consideration must not be passed
- consideration must be real/sufficient but need not be adequate
- consideration must be beyond an existing duty
– existing contractual duties to 3rd parties can amount to sufficient consideration
– part payment of a debt cannot amount to consideration

Question 12

The formation of a valid contract: the agreement must be in the correct form

Answer 12

Contracts can be made by deed, by writing or being evidenced in writing. In addition, they can be made orally or even be made by conduct

Question 13

Certain contracts have to be made in writing.

Examples include:

Answer 13

Question 14

Exceptions to S2

Where they need not be a written contract signed by both parties:

Answer 14

Question 15

Contract defects

Defects in the contract can lead to it being set aside

Answer 15

Question 16

Contract terms

Answer 16