Contract Law

Question 1

What does certainty of term mean?

Answer 1

To create a binding contract the terms of the agreement must be certain - they may be express or implied. Terms that are vague or uncertain can render a contract void.

Question 2

What does ‘executory consideration’ mean?

Answer 2

An exchange of promises for future performance of an act. It’s basically consideration, which must be adequate to be render the contract valid. Adequate has a broad interpretation.

Question 3

Is ‘necessity’ a determining factor in the court’s decision whether to imply a term into a contract?

Answer 3

Yes. It must be necessary to imply the proposed term into the contract. It is never sufficient that it should be reasonable.

Question 4

Can a half truth amount to misrepresentation?

Answer 4

Yes. If a statement is made and then, due to a change in circumstance, becomes untrue, it can amount to a misrepresentation.

Question 5

In what circumstances may an illegal contract be enforceable?

Answer 5

1. Where the parties are not at equal fault or in pari delicto (both parties are equally at fault)
2. Where the claimant has repudiated the illegal purpose in time
3. Where the claimant does not found his claim on illegality

Question 6

Can silence amount to misrepresentation?

Answer 6

Generally silence does not amount to misrepresentation. There is no positive duty on voluntary disclosure. However, a person will be liable for misrepresentation where he makes a representation by conduct and fails to correct the impression that this gives.