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Business Law > Contract Law > Flashcards

Contract Law Flashcards

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1
Q

Discharge by frustration

A

Events occur making it impossible or making the contract fundamentally different. No fault of individual parties

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2
Q

Discharge by frustration reasons (4)

A
  1. Destruction of subject matter
  2. Inability to achieve the main object
  3. Change in laws/government actions
  4. Death/permanent illness of a party
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3
Q

Express terms

A

Terms specifically agreed upon orally or written at the time the contract is made

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4
Q

Condition

A
  • Fundamental term
  • A breach gives the innocent party to claim damages
  • Gives the right to TERMINATE contract if necessary
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5
Q

Parol evidence rule

A

If a contract is in written form, no outside evidence makes the terms change

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6
Q

Innominate

A

Intermediate-term disagreed on. Unclear if it is a warranty or a condition.

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7
Q

Contract classification terms (3)

A
  1. Condition
  2. Warranty
  3. Innominate
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8
Q

Discharge by performance

A

Precisely the things both parties wanted and agreed upon have to be completed

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9
Q

Discharge by performance

–> Exceptions (2)

A
  1. Substantial performance

2. Divisible contract

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10
Q

Contract

A

A voluntary agreement made between two or more parties

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11
Q

A term used for contract breach

A

Contractual liability

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12
Q

Duress

A

When a party enters a contract due to violence, threats or something in that direction. (economic pressure as well)

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13
Q

Undue influence

A

Improper pressure put on someone

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14
Q

Contract termination cases (6)

A
  1. Void contract
  2. Voidable contract
  3. Performance
  4. Breach
  5. Agreement
  6. Frustration
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15
Q

Exclusion clause

–> conditions (3)

A

Its purpose is to limit or exclude liability for one party when breaching a contract.

  • Must cover the exact circumstances
  • Can’t defeat the main purpose of the contract
  • Judges decide if it is a fundamental breach
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16
Q

Transfer of property

A

The transfer of OWNERSHIP RIGHTS

Possession would mean having but NOT OWNING something.

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17
Q

When does ownership pass?

A

As soon as the risk passes. The future owner has to be in possession.

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18
Q

“offer and acceptance”

A

The party must be aware of it not being an invitation to treat (negotiate)

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19
Q

Conditions to be an OFFER (3)

A
  1. Offer must be clearly communicated
  2. The terms must be certain
  3. The offer must still be available (not terminated)
20
Q

Classification of contract terms (6)

A
  1. Condition
  2. Warranty
  3. Innominate
  4. Express terms
  5. Exclusion clauses
  6. Implied terms
21
Q

Contract termination

–> Discharge types (4)

A
  1. Discharge by performance
  2. Discharge by agreement
  3. Discharge by frustration
  4. Discharge by breach
22
Q

What is a “Consideration” in a contract?

A

Something of value (consideration) that will be exchanged for another thing of value (consideration)

23
Q

Types of consideration (2)

A
  1. Bilateral - Exchange of promises
  2. Unilateral - Act in return of a promise

*Note: mustn’t be of equal value for both

24
Q

Mistake (Voidable contracts)

–> types (4)

A
  1. Non est factum
  2. Mistaken identity
  3. Common mistake
  4. Mutual mistake
25
Q

Non est factum

A

A fundamental mistake in the NATURE of the contract

26
Q

Mistaken identity

A

One party is mistaken as to the Identity of the other party

27
Q

Common mistake

A

Both parties are mistaken about the same thing

28
Q

Mutual mistake

A

Parties misunderstood each other; no real agreement

29
Q

Employment contract types (2)

A
  1. Contract for services

2. Contract of service

30
Q

Contract FOR services

A

An independent contractor

31
Q

Contract OF service

A

A contract between employer and employee

32
Q

Discharge by agreement

–> scenarios (3)

A

Both parties agree to end the contract

  • Bilateral
  • Unilateral
  • Automatic
33
Q

Breach of employment

–> reasons (6)

A
  1. Theft/document falsification
  2. Fighting/bullying/violence
  3. Harassment
  4. Vandalism
  5. Deliberate unauthorized computer use
  6. Posting derogatory comments about the employer
34
Q

Breach of contract

A

When a party failed to perform the agreed terms

*Note: The court is not interested in the motive but rather if you did or not do it

35
Q

Sale of goods contracts include? (4)

A
  1. A contract
  2. A sale of a good
  3. A transfer of property (ownership)
  4. Money consideration (price)
36
Q

Types of written contracts (4)

A
  1. Deed to transfer land
  2. Hire purchase
  3. Share transfer/copyright
  4. Bills of exchange
37
Q

Warranty

A
  • A minor term in a contract
  • A breach gives the right to claim damages
  • CANNOT terminate contract
38
Q

Invitation to tender

A

An invitation to make people say how much they would charge to supply goods/services

*Note: A response to an invitation to tender is considered an OFFER

39
Q

Illegality

A

Contracts for criminal purposes, against morality/public policy

40
Q

Restraint of trade

A

Restricts trade is prima facie void unless reasonable between parties and not against public interest

41
Q

Misrepresentation

–> requirements (3)

A

Statements made by parties prior to contract

  1. Statement of fact, not opinion
  2. Made before or at the time of contract
  3. Must include the party to enter the contract
42
Q

Misrepresentation types (3)

A
  1. Innocent misrepresentation
  2. Negligent misrepresentation
  3. Fraudulent misrepresentation
43
Q

Remedies to misrepresentation (3)

A
  1. In equity
  2. In tort
  3. Legislation
44
Q

Innocent misrepresentation

A

When someone has reasonable grounds for believing that their false statement was true

45
Q

Negligent misrepresentation

A

the defendant is not judged for not having known that the statements made were false. He is judged for not having had reasonable grounds for believing they were true.

46
Q

Fraudulent misrepresentation

–> conditions (3)

A
  1. the party making the statement is aware that it is false or disregards the possibility of it being false
  2. the party making the statement does so to induce another party to enter into a contract
  3. the other party enters the contract as a result of the statement and consequently suffers a loss.

Business Law (6 decks)

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