Contract Law Flashcards
Definition of a contract
A set of promises that the law can enforce
The Schematic approach
offer, acceptance, intention to create legal restrictions, consideration, genuine consent, capacity, legality
The first example of how an offer can be made to the world
Carlill v Carbolic smoke company - flue from ball
Invitation to treat
a situation where someone is inviting you to negotiate - no offer is made yet
What is an offer
offering you a price
What is puffing
a puff is generally an expression or exaggeration made by a saleperson that concerns the quality of the product - presents opinion rather than fact
Who may withdraw the offer?
the oferror may, however this revocation of an offer must be communicated to the offeree
How to prevent the revocation of offers?
having an options - side agreement - offeror agrees to keep option open for a period of time - give good value for them to hold good
What is an acceptance?
n indication that a person agrees to be bound by the particular terms of the offer
What is the postal rule?
This is an exception to the general rules on acceptance
Rejection offer?
Rejection of the offer puts an end to it. Once rejected, the offer can not later be accepted if the offeree changes their mind. It would need to be renewed by the offeror
What is a counter offer?
occurs when precise terms are not accepted but the oferee still wants to negotiate
Hyde v Wench
vendor offers to sell farm for 1000 pounds purchaser offered 900 (counter offer) vendor rejects and purchaser pays the 1000
what is a request further information?
a request for further information or a counter offer? Difficult to distinguish
what is Consideration?
In the law of contract, a proimse or benefit must be paid for - thus the consideration is the price paid for a promise or a benefit - it is a promise to do something but is not the performance of that promise
What is a Deed?
A deed is a formal legal document, signed and witnessed in a particular way
Why were deeds created?
A way to avoid the need for consideration, yet still create an enforceable obligation is by the creation of a deed
Why do people use deeds?
deeds are often used to ensure that a promise or obligation is met without the need to prove the requirements of a contract eg a mortgage
Does a contract have to be in a particular form?
generally speaking, no, provided the agreement, intention and consideration exist, then a legally binding contract has been made
What is the exception to the rule of whether contracts have to be in particular forms?
The Property Law Act 2007 - this act provides that certain types of contract must be documented in writing in order to be enforceable
What does the contracts act apply to ?
any contract for the sale or other disposition of land which must be in writing or have its terms recorded in writing - must be signed by the party against who, the contract sought to be enforced
definition of guarantees?
Contracts under which a person agrees to answer to another person for the debt, default or liability of a third person
The terms of a contract
The obligations (what the parties have to do) in a contract are part of the terms of a contract - falling in to two categories; express terms and implied terms
Express and implied terms
express terms- might be described as aspects of control that the parties have turned their minds to (Or thought about ) such terms thus expressly agreed upon and incorporated into the contract even tho they are not recorded in writing
implied terms- terms that have not been expressly agreed upon by the parties but which are by law incorporated into the contract
What are damages?
damages are compensation for different types of loss
compensation for different kinds of loss
expectation loss - to put the innocent party in the same financial position as if the contract had been performed correctly
reliance loss - compensation for expenditure incured in reliance on the contract
principles of awards of damages
defendant is liable for normal loss and loss which should have been in the deffs contemplation due to defs knowledge of special circumstances
jarvis v swan tours
agreed damage
damages may be pre-agreed between the parties (before agreeing to accept contract)
Termination of the contract
if the breach is minor, you have to claim damages and carry on
if its serious, you can terminate the contract
it is governed by the contracts and commercial law act
When may the contract be terminated?
In circumstances of repudiation (the party in breach makes it clear they will not perform the contract at all)
Past consideration?
this is where, a promise was made after doing something - there was no reliance on the promise when proceeding in a task
