Contract Law Flashcards
What are the 5 essential components of any contract?
Offer, Acceptance, Consideration, Intention to create legal relations, Certainty
Define an offer
A statement of specified terms which be legally binding should it be accepted as proposed
What are some ‘not offers’?
price lists, advertisements (generally), show display, invitation to tender, auction
What 2 components are necessary for acceptance of an offer?
- Must be absolute and unequivocal (counter offer = not acceptance)
- must be communicated (exception is postal rule)
What is consideration?
Either in some right, interest, profit, or benefit occurring to the one party, or some, detriment, loss or responsibility suffered by the other.
How can a contract be discharged?
- performance of contract
- mutual agreement
- breach of contract
- frustration of contract
- improper conduct
List some remedies for breach of contract
claim for debt ; injunction ; rescission ; damages
What is frustration of contract?
Legal device that serves to terminate a contract due to the impossibility of performing it or another frustrating event that was difficult to foresee.
What 3 things can cause a contract to become void via improper conduct?
- Misrepresentation
- Duress and economic duress
- Undue influence
What is an invitation to treat?
A non binding approach to negotiation or discuss future contractual possibilities
What is the general rule about when acceptance takes place?
When it is received by the offeror
When does the ‘postal rule’ apply?
Where it is appropriate to make an acceptance by post, and the letter has been addressed and posted correctly
Why it is legally possible to buy a failing football club for £1
Consideration must be sufficient in the eyes of the law, but it does not need to be adequate
What may a contract contain?
conditions, warranties, innominate terms
Under which type of law will a contract be recognised as binding?
civil law
What is meant by the “cost of cure” when assessing damages?
The cost of remedying the defective performance
What is the aim of a force majeure clause?
reduces the likelihood of contractual disputes and of a frustrating event occurring. Typically drafted very broadly
What must happen for misrepresentation and thus protected against by the law
The misrepresentation must have induced the party to enter into the contract
What does undue influence relate to?
A third party inappropriately pressurising somebody to enter into a contract with somebody else
What is meant by duress / economic duress?
violence of threat of violence / pressure amount to coercion of will
What is arbitration?
Bypass the courts’ jurisdiction avoiding unnecessary delay or expense to provide quick resolution
