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IN4004 > Contract Law > Flashcards

Contract Law Flashcards

1
Q

Define contract

A

Legally enforceable agreement between two parties

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2
Q

Offer

A

The proposition put forward by one person to another coupled with an intention that they are willing to be bound by the offer

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3
Q

What must an offer be before it is accepted (understanding)

A

Everybody must be clear and the offer must be unambiguous

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4
Q

What is getting a quote?

A

Invitation to treat

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5
Q

When and by whom is an offer made to buy insurance?

A

When the potential insured sends a proposal form to the insurance company with money.

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6
Q

What is the cases that set precedent on invitation to treat

A

Ministry for commerce v. Pim [1966]

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7
Q

What are advertisements

A

Unilateral agreements

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8
Q

What is needed for an offer to be valid?

A

Intention

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9
Q

Acceptance

A

The offer must be accepted in full for the acceptance to count

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10
Q

What is acceptance with a but?

A

Counteroffer

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11
Q

Explain the hyde vs wrench president

A

Making a counteroffer makes the previous offer void.

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12
Q

Can acceptance be infered?

A

Yes through conduct

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13
Q

Can an offer be accepted by silence?

A

No

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14
Q

How can you waive your right to acceptance?

A

Written form

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15
Q

When posting a contract, when is acceptance formed?

A

When it is posted Kelly v Cruise Catering [1994]

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16
Q

When emailing a contract, when is acceptance formed?

A

When the person has had a reasonable opportunity to view the contract (9am-5pm)

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17
Q

How does an offer get terminated? (4)

A

Revoked, Lapse of time, death of other party, failure of conditions (didn’t deliver goods)

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18
Q

How long of a gracing period do insurers usually give?

A

30 days

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19
Q

Agreement =

A

Offer + acceptance

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20
Q

What does it mean to be ad idem to the contract?

A

Of the same mind

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21
Q

Consideration

A

There must be an exchange of something real and valuable to show willingness to the contract

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22
Q

What is consideration in an insurance contract

A

The promise to indemnify you for money

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23
Q

Intention to create legal relations (ICLR)

A

Must be the intention of both parties to create a legal relationship, not a social one

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24
Q

In terms of ICLR, the closer the relationship …

A

The less likely there is ICLR

25
In commercial contracts is there ICLR
Yes it is assumed
26
Who has to prove incapacity?
The person claiming capacity must show that the other person knew that they were incapacitated and that the goods were not for a necessary purpose
27
What case sets precedent for capacity?
Nash v. Inman [1908]
28
Who does not have the capacity to a contract (4)
- Person of unsound mind (incarcerated) - Intoxicated person - Coporations acting ultra vires - Person under 18
29
Induced into a contract
When somebody is misled into a contract
30
What overrides the other, an expressed or implied?
An expressed term overrides any implied term unless it takes away a legal or constitutional right
31
Implied term
Not said in the contract but assumed to be part of the contract
32
Example of an implied term
A carpenter is to do a good job of making a table
33
What is the purpose of an implied term?
To prevent accidental omission
34
What is an expressed term
thoes witch have been subject of discussion and acceptance between both parties.
35
Can courts imply terms?
Only if absolutely necessary
36
What does the court look at when enforcing a contract
The intention of the contract
37
What is the common law basis for implied terms? (name of test and case it comes from)
The officious bystander / reasonable man test from the Moorcock case 1889
38
Can terms implied by statute be overwritten by an expressed term?
No
39
What are some implied terms that exist in an insurance contract?
- The object must exist | - Insurer is not liable for losses caused by willful misconduct
40
What party do expressed terms come from
Offrer
41
What are expressed terms used to do?
Clarify ambiguity
42
How can expressed terms be communicated?
Writing or speech but speech are very hard to prove
43
Whats an exclusion clause
An expressed term that states something is not included
44
Contr proferentuim
Against the one bringing it forward - if the insurer leaves ambiguity in the contract then the court rules against the insurer
45
What is a warranty?
A legal promise to behave in a certain way
46
Suspensive condition
A contract is paused when a condition is broken
47
What are the 3 types of conditions
- Condition - Condition precedent to validity - Conditions precedent to liability
48
Condition precedent to validity
Breach prevents the policy from coming into existence, ie if the condition is broken then the policy is over
49
Conditions precedent to liability
The contract is void from the start
50
Example of precedent to liability
Failure to disclose material facts
51
What happens if a false statement induces another party into a contract?
Then it is void from inception
52
What does it mean for a policy to be against public policy?
It is illlegal
53
How can a contract be terminated
Peformance or breach
54
Void
Contract is over and cancelled
55
Voidable
Can be cancelled but the insurer give them time to fix it
56
What are the remedies for breach (3)
- Cancel the policy - sue for Damages - Injunction
57
Prohibitory injunction
Prevent something from happening
58
Mandatory injunction
Force them to fulfil the contract

IN4004 (16 decks)

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