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Law > Contract Law > Flashcards

Contract Law Flashcards

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1
Q

What is a contract?

A

A legally binding agreement between two or more people

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2
Q

What is a unilateral contract + example?

A

A contract where only one party adds something e.g. a rewards poster

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3
Q

What are the two types of contract?

A

Unilateral and Bilateral

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4
Q

What is a bilateral contract + example?

A

A contract where two parties add something e.g. a car and £5000

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5
Q

What are the things needed for a legally binding contract?

A

Offer, Acceptance, Consideration and Intention

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6
Q

What are the ways an ‘Offer’ can be presented in a question?

A

Offer, Invitation to Treat or a Request for Information with a reply

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7
Q

What is an Offer/what must it be?

A

The start of the contract, statement of terms upon which you are willing to be bound/ it must be communicated clearly and be certain (Gibson v Manchester City Council)

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8
Q

What are the side rules for Offer?

A

Counter-offer, Revocation, Rejection, Lapse of Time, Death

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9
Q

What is the side rule of Counter-offer?

A

It rejects and ENDS the previous offer, anything after is a new offer BUT must be communicated (Hyde v Wrench)

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10
Q

What is the side rule of Revocation?

A

Can be revoked at any time BEFORE acceptance and must be communicated directly or through reliable 3rd party (Dickinson v Dodds)

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11
Q

What is the side rule of Lapse of time?

A

If offer has time-limit, it will end after this or, if it doesn’t, it will end after a reasonable amount of time (Ramsgate Victoria Hotel)

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11
Q

What is the side rule of Rejection?

A

Must be a clear rejection and must be communicated (Stevenson v Mcclean)

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12
Q

What is the side rule of Death?

A

Can still be accepted until offeree knows about death, as estate will not die

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13
Q

What is an Invitation to Treat?

A

NOT an offer, invites the other person to make an offer themselves

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14
Q

What are the three types of ITT?

A

Adverts, Auctions and Items on Display

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15
Q

What are the rules for Advert?

A

(Partridge v Crittenden) Will always be an ITT UNLESS if it is intended for specific audience OR a unilateral contract (Carlill v Carbolic Smokeball)

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16
Q

What are the rules for Items on Display?

A

(Fisher v Bell) Invitation to treat as owner has ability to reject/accept

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17
Q

What are the rules for Auction?

A

(BCA v Wright) Auctioneer has ITT and bidders make offers

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18
Q

What is a Request for Information and Reply?

A

Where the other party simply asks for info, this is NOT an offer (Harvey v Facey)

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19
Q

What is Acceptance?

A

An agreement to the terms of the offer, can be in any form except silence (Felthouse v Bindley) but needs positive act (Carlill v Carbolic Smokeball)

20
Q

What are the side rules under Acceptance?

A

Postal rule, Electronics

21
Q

What is the Postal rule?

A

Letters of acceptance work as soon as posted (Adams v Lindsell) but only apply if: correctly stamped/dated, normal communication method, proof of postage

22
Q

What is the sub-side rule under Postage rule?

A

It can be avoided by putting terms into the offer such as ‘acceptance will only take place when communicated’

23
Q

What is the side rule of Electronic communication?

A

Accepting by fax, email or text counts only when it is received (Entores v Miles Far East) If office hours finished, next working day applies

24
Q

What is Consideration?

A

The ‘thing’ each party puts into the contract, it must be real and have value (Chappell v Nestle)

24
Q

What are the 4 side rules of Consideration?

A

Performance of an existing contractual duty, past consideration, part payment of debt, privity of contract

25
Q

What is performance of an exisitng contractual duty?

A

Doing what was already being done is not good consideration (Stilk v Myrick) BUT there are exceptions: if extra is done, its good (Hartley v Ponsonby) or if the party gains an extra benefit (Willianms v Roffey)

26
Q

What is past consideration?

A

If consideration is done before agreement, there is no valid contract (Re McArdle) BUT if there is an implied promise to pay, this can be enforced (Lampleigh v Braithwaite)

27
Q

What is part payment of debt?

A

Not good consideration, you can claim the rest even if you agreed (PINNEL’s case) UNLESS accepted something other than money, paying a smaller amount on a date earlier than originally agreed, repay part of it on date at a different place at request of debtor

28
Q

What is promissory estoppel under part payment of a debt?

A

An equittable remedy: if a promise is made that another person relies on to their detriment, the promisor is estopped/prevented from breaking that promise

29
Q

What is privity of contract?

A

Only those who give consideration have rights under a contract (Tweddle v Atkinson) BUT Contracts (Rights of Third Parties) Act 1999 states a person who isnt a party to a contract can enforce it if they are named in the contract or benefitd from it

30
Q

What is Intention?

A

Both parties must intend to create legal relations

31
Q

What are the two types of agreements under Intention?

A

Business Agreements or Social/Domestic Agreement

32
Q

What are business agreements assumed to be under Intention?

A

Presumed to be legally binding UNLESS it can be proved otherwise (rebuttable presumption) (Jones v Vernon’s Pools)

33
Q

What are social agreements assumed to be under Intention?

A

Presumed to not be legally binding UNLESS it can be proved otherwise (Balfour v Balfour) (Merritt v Merritt)

34
Q

What are the two side rules under Intention?

A

Money changing hands and putting financial security at risk

35
Q

What is the side rule of money changing hands under Intention?

A

Simpkins v Pays - if money changes hands, its more likely to be legally binding

36
Q

What is the side rule of putting financial security at risk under Intention?

A

Parker v Clarke - If parties put their financial security at risk, it is more likely to be legally binding

37
Q

What is breach under formation of a contract?

A

Where a contract exists but something has gone wrong

38
Q

What are the two types of breach?

A

Actual and Anticipatory

39
Q

What is actual breach?

A

Where a party has failed to fulfill their obligations, either breach of a warranty or breach of a condition

40
Q

What is breach of a condition under actual breach?

A

Poussard v Spiers - the contract is ended (repudiated) and they can sure for damages, the more significant of the two

41
Q

What is breach of a warranty under actual breach?

A

Bettini v Gye - the contract must carry on but damages can be claimed, the less significant of the two

42
Q

What happens if you are unsure of an actual breach?

A

This will be an inonimate term and so you must look at the effect of the breach, if it deprives someone of benefit, it will be a breach of contract

43
Q

What is anticipatory breach?

A

When a party gives notice is advance to the other party that he or she will not be performing or completing the contract - they can choose to claim or wait until it happens to claim more money

44
Q

What are the remedies available under breach of contract?

A

Compensatory damages, the duty to mitigate loss and equittable remedies

45
Q

What must happen in order to claim damages?

A

The C must prove that the damage was caused by the D’s breach + the damages must place the C in the same position they were in prior to the breach

46
Q

What can be claimed for in compensatory damages?

A

Loss of a bargain, Reliance loss and Restituion

46
Q

What is reliance loss under recoverable loss?

A

Wasted expenditure by a C who relied on a contract being performed, which are spent in advance of a contract

Law (18 decks)

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