Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Law > Contract Law > Flashcards

Contract Law Flashcards

You may prefer our related Brainscape-certified flashcards:
MBE flashcards MPRE flashcards Civil Procedure 1L flashcards
1
Q

What is a contract?

A

A legally binding agreement between two or more people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a unilateral contract + example?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the two types of contract?

A

Unilateral and Bilateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a bilateral contract + example?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the things needed for a legally binding contract?

A

Offer, Acceptance, Consideration and Intention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the side rules for Offer?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the side rule of Rejection?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the side rule of Death?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is an Invitation to Treat?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the three types of ITT?

A

Adverts, Auctions and Items on Display

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the rules for Items on Display?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the rules for Auction?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the side rules under Acceptance?

A

Postal rule, Electronics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is Consideration?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is Intention?

A

Both parties must intend to create legal relations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

47
Q

What is restitution under recoverable loss?

A

Repayment of any money or benefit that was paid in advance of the contract

48
Q

What is the duty ot mitigate loss?

A

Party must take steps to minimise their loss, but not to extraordinary lengths.

48
Q

What is remoteness of damage?

A

(Victoria Laundry) Can only claim for damages that were reasonably foreseeable + special contracts can only be claimed for if the other party knew of them

49
Q

What is an equittable remedy?

A

Provided at the discretion of the court, and only when damages are not enough

50
Q

What are the types of equittable remedy?

A

Injunction, Speciifc performance, Recission

51
Q

What is an injunction?

A

A court order which prevents someone from acting (Miller v Jackson) it can also be tailored (Kennaway v Thompson)

52
Q

What is specific performance?

A

Where a party is ordered to fulfill their contractual obligation

53
Q

What is recission?

A

The parties are simply placed back into the position they were in prior to forming the contract

54
Q

What is an express term?

A

Terms which the parties agree on themselves

54
Q

What is an implied term?

A

Terms which are added by the Government for protection

55
Q

What are the three ways terms can be put into the contract?

A

By custom, by fact and by statute

56
Q

What does a term being placed by fact mean?

A

Where the court presumes what the party would have added into the contract (Marks and Spencers v BNP Paribus) can also be done to make business sense

57
Q

What does a term being placed by custom mean?

A

Where it is tradition to have them in the contract (Hutton v Warren)

58
Q

What does a term being placed by statute mean?

A

Placed by the Consumer Rights Act 2015

59
Q

What does the Consumer Rights Act 2015 state?

A

Applies to all contracts between consumers and traders + covers all contracts for goods, services and mixed contracts

60
Q

What rights comes under a contract for goods?

A

s.9 goods must be of satisfactory quality, s.10 goods must be fit for purpose, s.11 goods must be as described

61
Q

What does s.9 of the Consumer Rights Act state + the defenses against it?

A

s.9 goods must be of satisfactory quality, s.9(2) based on what a reasonable person would day, s.9(3) this means freedom from minor defects, state and condition, price and description BUT this will not apply if fault is shown to the customer prior to the contract

62
Q

What does s.10 of the Consumer Rights Act state?

A

s.10 goods must be fit for purpose, for example, if the purpose is obvious or the business recommended those goods, the consumer must have relied on their skill and judgement + must be reasonable for them to do this (Baldry v Marshall)

63
Q

What does s.11 of the Consumer Rights Act state + what is the side rule for this?

A

s.11 goods must be as described, side rule states this also applied to how they are packaged (Moore & Co. Ltd)

63
Q

When is an exclusion clause valid?

A

An exclusion clause is valid when it is incorporated into the contract by signature (Curtis v Chemical Cleaning), by notice or by previous course of dealing (Olley v Marlborough Court Hotel)

64
Q

What section under the Consumer Rights Act prevents business’ from using exclusion clauses?

A

s.31 states a trader cannot exclude or limit their liability in regards to s.9, s.10 and s.11

65
Q

What remedies come under a contract for goods?

A

s.20 short term right to reject, s.23 the right to repair or replace, s24 the right to a price reduction or final right to reject

66
Q

What does s.20 of the Consumer Rights Act state?

A

A consumer is able to reject the good and claim a full refund within 30 days of delivery, and the trader must bear any reasonable costs of returning the goods

67
Q

What does s.23 of the Consumer Rights Act state?

A

The right to repair or replacement - the trader must do this within a reasonable time and without significant inconvenience and bear all the costs of doing so

68
Q

What does s.20 of the Consumer Rights Act state?

A

This will be allowed if a repair or replacement does not conform to the contract

69
Q

What rights come under a contract for services?

A

s.55 the right to require repeat performance, s.56 the right to a price reduction

70
Q

What does s.55 of the Consumer Rights Act state?

A

The right to require a specific performance, must be done within a reasonable amount of time and without any inconvenience to the consumer whilst bearing any costs

71
Q

What does s.56 of the Consumer Rights Act state?

A

The right to a price reduction by an appropriate amount, this could be a refund up to full contract price, which must be provided within 14 days

72
Q

What is needed for an exclusion clause to be properly constructed?

A

It must have clear wording and any ambiguity in terms of the meaning of the clause will go against the party relying on it (Contra proferentem rule)

73
Q

What are the three ways an exclusion cause can be incorporated into a contract?

A

By signature, by reasonable notice and by course of previous dealing

74
Q

What does a signature do to an exclusion clause in a contract?

A

If a person signs a contract, they are bound by the terms (Curtis v Chemical Cleaning) UNLESS it was verbally explained differently to the contract

75
Q

What does a reasonable notice do to an exclusion clause in a contract?

A

It is valid if reasonable notice if provided into the contract (Olley v Marlborough Court) BUT the more serious it is, the more should be done to make party aware ‘red hand rule’

76
Q

What does previous course of dealing do to an exclusion clause in a contract?

A

If parties have dealt with each other before, with the same type of contract, the court presumes you will be aware of the terms (Hollier v Rambler Motors)

Law (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions