Contracts Flashcards
What are the basic requirements of a contract?
Offer»_space;»» invitation to treat
Acceptance»> postal rule
Consideration
And an intention to create a legally binding contract
What are the implied terms?
Implied in fact
Implied in law
Implied by statute
Implied by custom
What is meant by implied in fact?
This makes the contract work in the way intended by both parties when something is not covered in the contract.
What is meant by implied in law?
Automatically implied to a class of contract unless the parties intended to do differently. For example, implied term in a lease agreement, that common areas are for the maintenance of the landlord.
What is meant by implied by statute?
The statute must apply to the contract.
Common with consumer contracts.
E.g the sale of goods act
What is meant by implied by custom?
The custom can justify the implied term and it has been forced in law. A contract may be bound by the custom even without knowledge of said custom but can reasonably expect it if it has been applied to similar contracts.
What is frustration?
Frustration is when a contract goes unfulfilled by no fault of either party, due to an extreme unforeseen change in circumstances from when a contract was first made.
What is an example of frustration?
For example, a person has booked a holiday but a flood affects the hotel and forces the hotel to close, cancelling the booking.
What can be included in a partnership agreement?
Name Division of money Investment Return on investment Decision making - majority rules Roles and departments Holiday, sick leave, subatical Insurance, awards, workers comp, life insurance Dissolution of the business Good will, net profit, average earnings, intellectual property Retirement age Sick, firing people after a certain period Non-Compete - restriction of trading Hours, salary
What is a partnership agreement?
A document or contract that establishes the terms and conditions of a partnership
