Contract Law Flashcards
What are the 5 main elements of contract?
Intention to create legal relations Offer Acceptance Consideration Certainty of terms
What is an offer? And what makes it binding?
A written or oral statement. For an offer to be binding it must be clearly communicated
What is the person who is making the offer and person to whom the offer is being made?
Person making offer - offeror
Person whom offer is being made - offeree
What is counter offer?
Offeree puts a new condition on the acceptance. The offeree becomes the offeror
What is acceptance?
An oral statement, written statement or act indicating acceptance. A contract is formed when the acceptor does something to indicated acceptance
When is a letter of acceptance seen to be accepted
Offer is accepted when Letter of acceptance is posted
What is consideration?
Something of value that passes from one party to another.
Consideration cannot be something in the past.
Offer has to be known before completing a task
What is certainty of terms?
Terms of contract must be clear and precise. Cannot be in general terms (price, model)
What is a capacity to contract?
A minor (under 18) is bound by a contract if the contract is for employment or necessities (food, medicine)
What things relating to consent would make the contract voidable?
Real consent must exist between parties
Mistake, misrepresentation, duress, undue influence would make it voidable.
What is legality?
A contract that is not within the law is not enforceable through the court
What are the three terms of a contract?
Express terms
Condition
Warranties
What are express terms?
Words that clearly define the item/s in the contract and are legally binding. (Make, model, price, colour)
What are conditions of a contract?
Main terms of a contract. If a condition of the contract is breeched then the contract can be voidable
What are warranties?
Not the main part of the contract. If warranty is breeched, you can claim damages for any loss, but the contract is not voidable
What are exemption clauses?
Clauses exempting (freeing) the parties from liability in certain circumstances. (Dry cleaners have clauses on their tickets, exempting themselves from liability for damage on clothes)
When are exemplary clauses enforceable?
When a reasonable person thought that such an exemption would be part of the contract
What are standard form contracts? + 3 examples
Write in advance with details filled I’m later such as name of customer and price.
Used in: real estate, care sales, gym memberships
What is the main remedy for a breech of contract ?
Damages
What have been two changes in the law?
Banning of exit fees on home loans for contracts entered into after 1 July 2011
The naming of over-the-limit fees on credit cards
What is a contract?
An agreement or promise between two individuals or groups that is intended to be legally binding and can be enforced by the law
What is an intention to create legal relations?
A principle of law requiring the parties to intend to create obligations that are legally binding and enforceable
What is an invitation to treat?
Not an offer, but an indication of a persons willingness to negotiate a contract
What are implied terms?
Terms not written in the contract but assumed by the law to be present.
What are 3 defences to breech of contract?
Consent was not freely given
There was no valid contact
You had not breeched the contract
What is a contract?
An agreement between two individuals or groups that is intended to be legally binding and can be enforced by the law
What are 2 Bodies/ methods for resolving disputes?
- Consumer affairs Victoria can organise conciliation between parties to reach an agreement (not binding)
- mag, supreme & county court can hear disputes relating to contracts
