CONTRACT LAW L4 - Offer & Acceptance - CONTRACT FORMATION

Question 1

What are intentions to create legal intentions / ICLR ? (1)

Answer 1

The presumptions applied by the court and are rarely rebutted.

Question 2

ICLR in a business context? (1)

Answer 2

It is presumed.

Question 3

ICLR in a domestic or social agreement? (1)

Answer 3

It is not presumed.

Question 4

Do minors have the capacity to contract? (2)

Answer 4

No. Instances when a minor will be bound by a contract include necessaries and contracts of employment, apprenticeships or education.

Question 5

What does it mean if someone lacks capacity? (4)

Answer 5

If they are unable to understand the relevant information , retain it, use it and communicate a decision.

Question 6

Do people with lack of capacity still remain liable? (2)

Answer 6

They remain liable to pay a reasonable sum but if they can establish that they did not understand what they were doing and that the other party knew that to be the case then they may not be liable.

Question 7

What is consideration? (2)

Answer 7

It is an act or forbearance of one party, or the promise thereof, is the price of which the promise of the other bought, and the promise thus given for the value is enforceable.

Question 8

What must consideration be? (4)

Answer 8

Each party must give it for a contract to be binding.
It must not be past.
It must be sufficient and have some value in the eyes of the law.

Question 9

What must you have in order to have a binding contract? (3)

Answer 9

Valid consideration, ICLR and capacity.