Contracts Flashcards

1
Q

What is the philosophy of contracts? (4)

A

1) Freedom of contract
2) Promised exchanges
3) Bargain
4) Future expectation created

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the source of contract law?

A

1) Constitution Act, 1867 Section 92 (13) : Property and Civil Rights
2) Provincial constitutional jurisdiction
3) Mostly left to common law judges to develope

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Forming of a contract - Arm’s length

A

arm’s length - the description of an agreement made by two parties

1) freely and independently of each other,
2) without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Forming of a contract - Arms length law perspective

A
  • The law assumes that you don’t traditionally make contracts with family members and rather with people at arm’s length. Strangers and such.
  • With family and friends the courts do no assume is a legal documentation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How do you make a contract with someone not at “arms length” (family)

A
  • If you do want to go make a contract with family, social settings, etc – you must state explicitly to overrule courts assumption
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the two things needed to form a contract

A

Intention to create legal relations. This means two things,
1) ARMS LENGTH

2) THE ACKNOWLEDGEMENT THAT THE OPPOSITE PARTY WILL TAKE TO COURT FOR ENFORCEMENT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The presumption in the formation of a contract? (2)

A

1) Contract made by parties not a arms length

2) Contract made by parties at arms length

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Need for writting? - Is an oral contract legally enforceable?

A

yes!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Statue of Frauds: three kinds of contracts MUST be written

A

1) Sale of land
2) guarantees of indemnities (security or protection against a loss or other financial burden)
3) Performance exceeds one year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is an indemnity?

A

security or protection against a loss or other financial burden.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Give an example of a Guarantor?

A

A gives money to B and C promises to pay it back to A

C is the Guarantor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When your hired why is it that your not explicitely given a time frame?

A

because your looked as hired indefinitive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Are most consumer transactions oral or commercial?

A

Oral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Are most commercial transaction oral or written?

A

written. Think Equipment, supplies, and machines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

NEED FOR WRITING? Given the fact that most contracts are not obligated to be written, why is it so prevelant?

A

1) Easy proof if enforcement is required. Signatures equate consent on behave of party
2) Guidance to performance - standards established

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

NEED FOR WRITING? What kind of writing is required by law?

A

A Memorandum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

NEED FOR WRITING? What is a Memorandum?

A

Anything on paper which is signed for a certain purpose/ objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

NEED FOR WRITING? Suppose you don’t write a contract and there is no proof of certain actions necessary to honour the contract. What are your options for enforcing these actions when no memorandum is available as proof?

A

convince the judge that there is a clear motive /CONDUCT of contract (HAIL MARY)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

NEED FOR WRITING? What is a Quantum Merui?

A

a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

NEED FOR WRITING? What is a Doctrine of Part Performance?

A
  • Part-Performance doctrine is an equitable principle that allows a court to recognize and enforce an oral contract despite its legal deficiencies
  • conduct between the parties that is unequivocally referable to the existence of this contract”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Offer - What is an offer?

A

an expression of willingness with the apparent intention that it shall become legal and binding when it is accepted by the other party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does an offer contain? (2)

A

1) Subject matter

2) Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is an offerOR

A

someone who gives an offer to another

24
Q

What is an offerEE

A

someone who receives from someone

25
Q

At what point is an offer effective?

A

when the offerEE receives it

26
Q

What does offer must be distinguished from?

A

An invitation to treat

27
Q

What is an invitation to treat?

A

Not a legal offer. Simply, an invitation to someone or the public to come and make an offer

28
Q

What is an example of an invitation to treat

A

displays or advertisments

29
Q

What is a bilateral contract?

A

bilateral contract is a reciprocal arrangement between two parties by which each promises to perform an act in exchange for the other party’s act. Normal contract

30
Q

What is a unilateral contract?

A

were an offer can only be accepted by performance.

A unilateral contract can be formed by an express offer stating that the offer can only be accepted through performance.

31
Q

An offer made to the whole world can still in some cases be an offer - name a case

A

Carbolic Smoke Ball case

32
Q

What is key in determinng an offer

A

Substance over form – what it is in fact is more important then the offer

33
Q

When is an offer terminated? (4)

A

1) Accepting an offer
2) Revocation
3) Rejection
4) Counter offer
5) Lapse

34
Q

When is an offer terminated - Revocation expand (2)

A

1) Cancelling it and no new offers made

2) Cancel before accepted

35
Q

When is an offer terminated - Rejection

A

1) straight up rejecting an offer

36
Q

When is an offer terminated - Counter-offer

A

1) Kills offer and births a new one

37
Q

When is an offer terminated - Define Lapse and name two sub categories

A

Offer expires

1) Express deadline for acceptance passes - expressed lapse
2) Within a reasonable time of making the offer

38
Q

when is the expiry (lapse) of a subject matter relevant?

A

When dealing with food as it spoils.

39
Q

What do we assume by sponantous offers?

A

There is hireachy of modes of communication that imply urgency and a standard of lapse. For instance, email you assume one to two days, expiry. Phone call you expect an expiry of that day. Face to face you expire immedietly .

40
Q

When and how is acceptance of a contract achived ? (3)

A

1) When and must be communicated by offeree to offeror
2) Must be uncoditional
3) In consumer transactions, offers and acceptance are implied by conduct - no words needed

41
Q

Acceptance of a contracts - What are the excemption to “must ve communicated by offeree to offeror (2)

A

1) Unilatteral offer - perfome

2) Postal acceptance rule - letter is accepeted when you deposit letter

42
Q

What distinguishes a contract from a gift?

A
  • Both sides must be promising to give up something during contract – seriousness.
    -Both parties must promise, at the time the contract is made, to give up some consideration
    this forces them to address their minds to their contractual obligations
43
Q

What are forms of consideration? (5)

A

1) Money
2) Service
3) Good
4) Relinquishment of legal rights
5) Relinquishment of legal rights

44
Q

Does a handshake make a contract legal?

A

no

45
Q

What is the concept of mutual consideration?

A

Each party gives up something of value (consideration)

46
Q

Does the adequacy of consideration matter?

A

The AMOUNT of consideration exhanched between two parties is irrelevant

47
Q

Does consideration given in the past count?

A

Does not count

48
Q

What are the exceptions to consideration?

A

1) Seal is a complete substitude. Gives impression of legality
2) Equity promisory estoppel if detrimental reliance

49
Q

What is Equity promisory estoppel if detrimental reliance?

A

legal principle that a promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment.

50
Q

What is it called when a party does not pay consideration

A

a breach

51
Q

What to do in new settlements (compromises)

A

Something new consideration must be exchanged between the two parties. You cannot simply reduce the cost of a project but rather an exchange must occur orm else it aint enforceable

52
Q

When accessing a 2nd contract –

A

analyze what is given up and what are they getting

53
Q

Capacity to contract

A

1) Children
2) Insane people
3) Disabled

54
Q

Capacity is determined at the time of the contract not at the time of the performance - T OR F

A

truuuuu

55
Q

Capacity to Contract - General Rule - Party with incapacity may elect to ratify or repudiate the contract. T or F

A

Truth

56
Q

What does the General Rule apply ONLY to:

A

1) Contracts for necessaries is always binding
2) Contracts for non-necessaries – No shelter or food, games
3) Necessary – need to live (ENFORCEBLE)