Contract Law Flashcards
In which court are civil cases generally heard?
County Court
What is the purpose of civil law?
To compensate a wronged individual who has suffered loss or injury due to others’ actions.
Which three elements are essential to all valid contracts?
Agreement, offer and acceptance - Consideration, the exchange of value - Intention to create legal relations
What is an Invitation to Treat?
An invitation to another individual or business to make an offer.
Offers may only be accepted while they are still open for acceptance. In which four ways may an offer be terminated?
1 - The time limit (or a ‘reasonable’ time expires.
2 - The offeror cancels the offer.
3 - An offer is rejected by the proposal of a counter-offer.
4 - The offer is accepted or rejected.
What must the acceptance of an offer be?
1 - Unambiguously written, spoken, or implied - not assumed
2 - Unconditional
What is legitimate ‘consideration’ in a binding contract?
1 - Sufficient - it must have value and be exchanged between the two parties
2 - If a PROMISE of future value is made on one side, payment must be made on the other.
3 - consideration should NOT happen before the promise.
Which type of agreements are assumed by the law to be legally binding?
Commercial/business agreements.
Social and domestic arrangements are not assumed to be binding.
What is the difference between a void and voidable contract?
A void contract was never enforcable by law, whereas a voidable contract may have begun as binding but can be nullified due to unforeseen factors. ONE party is bound by the contract, the other is NOT.
What is a discharge of contract by PERFORMANCE?
All requirements of the contract have been adequately fulfilled.
What is a discharge of contract by IMPOSSIBILITY OF PERFORMANCE?
Circumstances have arisen that make the contract conditions impossible to fulfil.
What is a discharge of contract by PRIOR AGREEMENT?
Involved parties have written into the terms that if a specific event occurs, either party can withdraw from the contract.
What is a discharge of contract by BREACH?
One or more of the agreed terms has been broken.
