Contract Law - Key terms Flashcards
Define an Offer
‘an expression of willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed’ (Treitel The law of contract)
Define Acceptance
Contract acceptance is the act of agreeing to form a legally binding agreement based on an offer provided by the other party. It is an essential element of a contract, and without it, a contract will not be valid or binding.
Define Certainty
Certainty in contract law refers to the clarity and precision of the terms and conditions within a contractual agreement. All parties involved in a contract need to fully understand and interpret its terms. A contract should be a complete and final agreement, leaving no room for ambiguity or misunderstanding.
Define Consideration
In legal terms, consideration refers to the value exchanged between parties in a contract. It is a fundamental element that differentiates a contract from a mere agreement or promise. Consideration is the inducement to a contract; it’s what each party brings to the table, making the contract worthwhile.
Define Intent/Intention (to create legal relations)
Intention to create legal relations, otherwise an “intention to be legally bound”, is a doctrine used in contract law, particularly English contract law and related common law jurisdictions.
Define Agreement
An agreement in contract law is the consent of two or more persons concurring, respecting the transmission of some property, right or benefit, with a view of contracting an obligation. An agreement is a promise that involves consideration, which is a gain or advantage for each party. An agreement becomes a contract when it is legally binding and enforceable in a court of law.
Define Freedom
Freedom of contract is a fundamental principle in civil law that grants individuals the right to freely enter into, shape, and terminate contracts.
Define Objectivity
Defined in the following terms by Blackburn J in Smith v Hughes (1871): If, whatever a man’s real intention may be, he so conducts himself that a reasonable man would believe that he was assenting upon the terms proposed by the other party, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party’s terms.
Define Silence
Accepting a contract without saying anything or replying is one notion connected to contract acceptance. This is referred to as quiet acceptance. According to this theory, if one party makes an offer and the other side does not reply or take any action, no response means acceptance
Define Restitution
Restitution is a remedy which can operate alongside or distinct from contractual or tortious claims, and which can be available in a claim which arises either as a matter of law or in equity. Restitution restores the claimant to the position it was in before the defendant had been unjustly enriched at its expense.
Define Unjust enrichment
when someone is said to have been “unjustly enriched,” this means that he has benefitted at someone else’s expense, due to chance or mistake. In such situations, the law of equity dema: A promise (offer) in return for an act (acceptance). Acceptance of the offer is performing the act.
Define Bilateral Contracts
A promise (offer) in return for an act (acceptance). Acceptance of the offer is performing the act. Effectively this contract places obligations upon and grants rights to both parties.
Define Unilateral Contracts
In a unilateral contract, the offeree makes no promise and so is under no obligation to do anything.Essentially an exchange between two parties is immediately binding. With unilateral contracts the promiser is bound to perform, if and only if, the person (or persons) with whom the promise is made performs the specified act. (i.e. carlill v carbolic smoke)
Define The principle of objective intention
Words are to be interpreted as they were reasonably understood by the person to whom they were spoken, not as they were understood by the person who spoke them.
Define Estoppel
a principle, originating in the courts of equity, that is difficult to define but essentially embodies the general idea that if you say or do something and another person takes you at your word or at face value, and relies on what you have said or done, you cannot later change your mind or resile from your position—this would be unconscionable so you will be prevented or ‘estopped’ from doing so
Define Proprietary estoppel
a principle, originating in the courts of equity, that is difficult to define but essentially embodies the general idea that if you say or do something and another person takes you at your word or at face value, and relies on what you have said or done, you cannot later change your mind or resile from your position—this would be unconscionable so you will be prevented or ‘estopped’ from doing so
Define Suspensory (estoppel)
Suspensory (estoppel) The most common view in cases and commentary is that promissory estoppel is merely suspensory. (a promissory estoppel can be part-extinctive, part-suspensory).
Define Instantaneous methods of communicating vs non instantaneous
One of the defining features of Digital Communication is its ability to enable immediate and real-time interaction. Whether it’s through instant messaging, video calls, or live chat, Digital Communication allows individuals to connect and communicate with each other instantly, transcending geographical barriers
non-instantaneous is Post etc
Define Executed consideration
Relates to payment for promise in the present time (e.g. buying groceries in a shop, paying for them straight away)
Define Executory consideration
Executory consideration: relates to payment for a promise in the future (Hiring equipment, payment happens in the future once equipment is delivered for use)
Define the Doctrine of Privity:
Doctrine of Privity: The doctrine of privity of contract is a common law principle that states that a contract cannot confer rights or impose obligations upon anyone who is not a party to that contract. It imposes rights and obligations to parties of a contract and restricts non-contractual parties from enforcing the contract. The doctrine means that a contract cannot, as a general rule, confer rights or impose obligations arising under it on any person except the parties to it.
Define Collateral contracts
Collateral contracts are independent oral or written contracts that are made between two parties to a separate agreement or between one of the original parties and a third party.
They are usually made before or simultaneously with the original contract. A collateral contract is usually a single term contract, made in consideration of the party for whose benefit the contract operates agreeing to enter into the principal or main contract, which sets out additional terms relating to the same subject matter as the main contract.
Define what is meant by an Incorporation of express terms
Incorporation of express terms: A term may be incorporated into the contract either expressly or impliedly. Express terms are those which have been explicitly communicated between the parties orally or in writing. The intention of the parties is clear and there is little discussion to be had of these.
Define what its meant by an Incorporation by notice
Incorporation by notice: Where a signature is not present, a Contract term may be incorporated by Notice, which must be given at, or before, the time of contracting and reasonable steps taken to bring the term to the Notice or the other Party.
