contract law

Question 1

exception of rule of informality week 3

What contracts are required to be written?

Answer 1

1. things surrounding property
2. marriage
3. insurance
4. testament/ will
5. incorporating a private company
6. establishing a foundation

Question 2

week 3

what are advantages of written contracts?

Answer 2

• warning function-> parties think more carefully about what they do.
• evidentiary function -> promotes certainty and safety.

Question 3

week 3

what contracts need a noterial act to be valid (written by notaris)

Answer 3

• promise to gift (big gift)
• mortages
• martimoral
• transfer immovable property

Question 4

week 3

what are consequenses of no writing when required?

Answer 4

contract is unenforcable unless there is writing that evidences document

unenforcable- cant ask the state to force othe party to perform contract

Question 5

week 3

what groups have less legal capacity*?

*less legal capicity does not mean no legal capacity

Answer 5

• minors
• mentally impaired (medical definition
• constantly intoxicated –> alcoholic

Question 6

week 3

what does intention mean in the context of contract law?

Answer 6

with ‘intention’ is meant the intention to be legally bound. meeting of minds- consesus ad idem

Question 7

week 3

what are situations when there is no intention?

Answer 7

• puffery (vague and exegarated–> in commercials
• social situations
• gentlemans agreements (based on trust)
• comfort letters (company doesnt comit to anything but agrees to be supportive)
• subject to contract

Question 8

week 3- binding legally?

commercial agreements?

Answer 8

-always assumed to be bound legally
EXCEPT- subject to contract, gentlemans agreement

Question 9

week 3 binding legally?

gratuitous agreements?

Answer 9

intention to be bound not assumed

Question 10

week 3 binding legally?

social agreements?

Answer 10

intention to be bound not assumed

Question 11

week 3 binding legally?

Domnestic agreements?

Answer 11

intention to be bound not assumed

Question 12

week 3

what is consideration?

Answer 12

• consideration is the principle that there should be a cost for a promise.
• there is no high value needed it’s simply about the movement of things
• unique to COMMON LAW (UK)

Question 13

week 3

what are the basic rules of consideration?

Answer 13

1. The consideration must not be from the past.
2. consideration must come from the promisee
3. value of consideration doesnt matter
4. fullfilling an existing legal obligation is not consideration.

Question 14

week 1

what er the 6 things that make a contract?

Answer 14

1. offer
2. acceptance
3. intention
4. formality
5. capacity
6. lack of vitiating factors

Question 15

week 2

what is the difference between an unilateral and a bilateral contract?

Answer 15

• Unilateral contract- a promise in exchange for an act (ex. reward for info about a crime)
• Bilateral contract- a promise in exchange for a promise (ex. sale of a bike)

Question 16

week 2

what is the difference between an offer and an invitation to treat?

Answer 16

* invitation to treat- still room for negotiation, or request for more information. Invitation to negotiate terms. no certainty
offer - definite to the legal terms, clear intention to be bound by the legal terms immediatly. there is certainty regarding substance contract.

Question 17

week 2

what are the communication theories surrounding ‘acceptance’?

Answer 17

• Receipt Theory/Rule-Takes effect at the time the acceptance is received (we assume it was read). france + germany
• Dispatch Theory/Rule-Takes effect at the time the acceptance is sent or posted.
  england

Question 18

week 4

what are examples of illegal contracts?

Answer 18

-contracts encouraging criminal activity
-buying things that are knowingly stolen.
-when contract is illegal contract is void

Question 19

week 4

when is there defect of consent with contracts?

Answer 19

• mistake
• fraud
• threat and duress (eng.)
• undue influence
• misrepresentation (eng.)

Question 20

week 4

what sorts of mistakes are there?

Answer 20

• unilateral mistake-> only one party was mistaken (contract will be upheld)
• mutual mistake-> both parties mistaken but different mistaken belief (eng. law only)
• common mistake-> subject of contract did not exist at time of contract.

Question 21

week 4

what is fraud?

Answer 21

-intentionally created mistake.
-other party wouldnt have entered contract if they had known it.
ex- selling fake vitamin pills.

Question 22

week 4

what is misrepresentation?

Answer 22

common law concept:
a false statement with the effect of inducing a party to enter into a contract.

Question 23

week 4

what are the three types of misrepresentation?

Answer 23

-innocent: honestly made
-negligent: honestly made but should have known.
-fraudulent: knowing it was untrue or reckless to truth.

Question 24

week 4

how can a contract end?

Answer 24

• agreement that contract is ended
• by performance
• by non-performance
• by intervening event

Question 25

week 4

when is a contract performed?

Answer 25

• performance must be full but sometimes partial performance may suffice
• exception-> doctrine of frustation, extreme event which made performance impossible

Question 26

week 4

what is the consequence of the failure to perform?

Answer 26

contract is breached which gives rights to remedies.

Question 27

week 4

what does ‘void’ and ‘voidable’ mean in contract law?

Answer 27

• void: contract never existed in eyes of law
• voidable: contract valid until party applies for contract to be declared void.

Question 28

week 4

what do recission and avoidance mean?

Answer 28

• recission: unmaking of a contract between parties.
• avoidance: cancelling a contract when it cannot be continued or is no longer profitable (extreme sit.)