Contract Law Flashcards
What type of jurisdiction does the UK have?
Common Law
What is Common Law?
Law that is derived both from legislation and ‘judge made law’ (based of precedant)
‘Judge made law’ combines which two bodies?
Common Law (rule based) Equity (discretionary)
What type of law does contract law regard?
Civil
What are the differences between Criminal and Civil Law?
Criminal Law is when the state (CPS) sets legal action, burden of proof is high (beyond reasonable doubt)
Civil Law is when legal action is brough by an individual who has ‘suffered’. Must show defendant is liable (on the balance of probabilities).
What is the definition of a contract?
an agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual law is that it is based on the agreement of contracting parties.
Do contracts have to be written?
Contracts can be oral with the exception of land.
What are the 5 components of a contract in order?
1) Offer
2) Acceptance
3) Consideration
4) Intent to create legal relations
5) Certainty
Define ‘Offer’
The unequivival indication of willingness to be legally bound by a promise if the terms of the offer are met.
What can sometimes come before the offer?
An ‘invitation to treat’ (advert/price list/shop window)
If there’s no reserve price what is the action of the bidder considered as?
Offer acceptance
What are the essential components of acceptance
Must be absolute and unequivical
Must be communicated
Offers can be revoked until acceptance
Offer will lapse after a ‘reasonable’ time
Is a couter-offer a form of acceptance
No it is an offer
What is consideration?
“The price one pays for anothers promise”, not necessarily cash
Is intention to create legal relations presumed?
In business it is presumed, in a social context it is not.
Why is certainty important?
Terms must be specific, if too vague they can be unenforcable and more disputable.
What are the two types of contract terms?
Express terms - specifically contained in the accepted contract
Implied terms - terms implied by court that any bystander would have assumed.
What 5 ways can a contract be discharged?
Performance of contract (completion) By mutual agreement Breach of contract (can be voidable) Frustration of contract (unable to be completed by to external unforseeable factors) Inproper conduct (contract is voidable)
What are the two categories under breach of contract?
Repudiatory breach - serious breach that warrants termination
Anticapatory breach - where one party indicicates early a lack of ability to perform obligations
Is a breach of obligation considered repudiatory?
Yes
Is a breach of warranty considered repudiatory?
No
Is a breach of innominate term considered repudiatory?
Maybe depends on seriousness
What are the remedies for breach of contract?
Damages (most common) Claim for debt Specific instruction Injunction Recission (voided contract)
What are the three types of damages?
Punitive (not available for breach of contract)
Restitutory (take what has been gained at claimants expense)
Compensatory (compensate for loss)
What are some things the claimant can be compenesated for in the context of a breach of contract?
Cost of replacement performance lost profits damage to property personal injury damage to reputation damages payable to customer emotional distress loss of pleasure
What are some limitations to compensation in the context of contracts?
Causation
Remoteness of loss
Mitigation (did the claimant attempt to mitigate losses)
non-percuniary losses (no market value)
liquidated damages (enforcable) vs penalty clauses (non enforcable)
What are some examples of frustrating events?
impossibility
illegality
impracticality
frustration of purpose
What is a force majeure clause?
It can alter a parties obligations
What are the three types of improper conduct?
Misrepresentation
Undue Influence
Duress and economic duress
What are the three types of misrepresentation?
Fraudulent (high burden of proof req)
Innocent
Negligent
What is undue influence?
When a third party uses influence to force party into contract
What are the two classes of undue influence?
Class 1 - actual - no relationship between parties
Class 2 - presumed - relationship between parties
What is the remedy for improper conduct?
Recission, contract is made void.
