contract law

Question 1

what is contract?

Answer 1

an agreement which the courts will enforce. disapproving of loose living though (eg. highwaymen agreement)

Question 2

what are the six basic elements needed for a contract?

Answer 2

1. form
2. capacity
3. intention
4. offer
5. acceptance
6. consideration

Question 3

explain the “form” element of a contract.

Answer 3

general rule :
- no formal requirements to form contracts
- can be made written, verbally or by conduct

english law :
- some contracts must be made in particular format or won’t be enforceable
- can be made by deed (signatures witnessed)
- can be made in writing & signed
- can be evidenced by writing

Question 4

explain the “capacity” element of a contract.

Answer 4

double check that person involved in contract has capacity / power to agree & sign. watch out for :
- drunks & similar
- mentally disordered (mental capacity act 2005)
- minors

Question 5

explain the “intention” element of a contract.

Answer 5

courts check if clear that parties intended to enter contract

Question 6

explain the “offer” element of a contract.

Answer 6

a definite promise to be bound by certain terms

Question 7

what is an offeror?

Answer 7

person making the offer (can be offering to sell or buy)

Question 8

what is an offeree?

Answer 8

person to who offer is made (can make an offer to an individual or whole world)

Question 9

when can an offer end?

Answer 9

death : death of offeree, then offer ceases. death of offeror, usually ceases.
failure of conditions : did not meet terms of offer or contract
lapse of time : only obliged to hold offer open if offered to receive something in return (eg. deposit)
rejection : offeree rejects offer & tells offeror (“no” destroys offer). counter offer, offeree attaches conditions, (“yes but” destroys offer, creates new one). withdrawal offeror can withdraw offer before it is accepted