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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
Q

In commercial contracts is there ICLR

A

Yes it is assumed

26
Q

Who has to prove incapacity?

A

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
Q

What case sets precedent for capacity?

A

Nash v. Inman [1908]

28
Q

Who does not have the capacity to a contract (4)

A
  • Person of unsound mind (incarcerated)
  • Intoxicated person
  • Coporations acting ultra vires
  • Person under 18
29
Q

Induced into a contract

A

When somebody is misled into a contract

30
Q

What overrides the other, an expressed or implied?

A

An expressed term overrides any implied term unless it takes away a legal or constitutional right

31
Q

Implied term

A

Not said in the contract but assumed to be part of the contract

32
Q

Example of an implied term

A

A carpenter is to do a good job of making a table

33
Q

What is the purpose of an implied term?

A

To prevent accidental omission

34
Q

What is an expressed term

A

thoes witch have been subject of discussion and acceptance between both parties.

35
Q

Can courts imply terms?

A

Only if absolutely necessary

36
Q

What does the court look at when enforcing a contract

A

The intention of the contract

37
Q

What is the common law basis for implied terms? (name of test and case it comes from)

A

The officious bystander / reasonable man test from the Moorcock case 1889

38
Q

Can terms implied by statute be overwritten by an expressed term?

A

No

39
Q

What are some implied terms that exist in an insurance contract?

A
  • The object must exist

- Insurer is not liable for losses caused by willful misconduct

40
Q

What party do expressed terms come from

A

Offrer

41
Q

What are expressed terms used to do?

A

Clarify ambiguity

42
Q

How can expressed terms be communicated?

A

Writing or speech but speech are very hard to prove

43
Q

Whats an exclusion clause

A

An expressed term that states something is not included

44
Q

Contr proferentuim

A

Against the one bringing it forward - if the insurer leaves ambiguity in the contract then the court rules against the insurer

45
Q

What is a warranty?

A

A legal promise to behave in a certain way

46
Q

Suspensive condition

A

A contract is paused when a condition is broken

47
Q

What are the 3 types of conditions

A
  • Condition
  • Condition precedent to validity
  • Conditions precedent to liability
48
Q

Condition precedent to validity

A

Breach prevents the policy from coming into existence, ie if the condition is broken then the policy is over

49
Q

Conditions precedent to liability

A

The contract is void from the start

50
Q

Example of precedent to liability

A

Failure to disclose material facts

51
Q

What happens if a false statement induces another party into a contract?

A

Then it is void from inception

52
Q

What does it mean for a policy to be against public policy?

A

It is illlegal

53
Q

How can a contract be terminated

A

Peformance or breach

54
Q

Void

A

Contract is over and cancelled

55
Q

Voidable

A

Can be cancelled but the insurer give them time to fix it

56
Q

What are the remedies for breach (3)

A
  • Cancel the policy
  • sue for Damages
  • Injunction
57
Q

Prohibitory injunction

A

Prevent something from happening

58
Q

Mandatory injunction

A

Force them to fulfil the contract

IN4004 (16 decks)

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