Contracts Part 2

Question 1

When can a contract be unenforceable?

Answer 1

When there is a lack of capacity of one of the parties, illegality of purpose, a mistake, misrepresentation, or when one party is under influence or duress

Question 2

What are the rules regarding minors and contracts?

Answer 2

A minor, who is a person under 18, is deemed not to have the capacity to consent to contracts

Question 3

What are the only exceptions when minors can enter contracts?

Answer 3

If the contract is for necessities such as food and medicine, employment, education or tuition

Question 4

What is the relationship between contracts and illegal purposes?

Answer 4

A contract is unenforceable if it is for an illegal purpose, notwithstanding consent

Question 5

What is an example of illegality of purpose occurring in a contract?

Answer 5

If a disgruntled footballer promises to pay a hit man to kill an umpire, the hit man cannot sue the footballer for failing to pay, nor can the footballer sue the hit man for failing to kill

Question 6

What is an example of an honest mistake made by both parties in a contract?

Answer 6

If Dave orders Dirk a job in Paris and Dirk accepts, however Dave meant Paris in Texas, whilst Dirk thought he meant Paris in France

Question 7

What is the relationship between honest mistakes and contracts?

Answer 7

If there is an honest mistake made by both parties than the contract may be unenforceable

Question 8

What is the relationship between one party making a mistake and contracts?

Answer 8

If only one party has made a mistake and through no fault of the other party, than the contract will usually remain enforceable

Question 9

What is the relationship between deception and contracts?

Answer 9

If there is any form of deception, deliberate or otherwise, the party who was deceived can choose to withdraw from the contract if they wish

Question 10

What is an example of deception in a contract?

Answer 10

A car salesman claims a car has been driven 70,000KM when it has actually travelled 270,000KM and sells it to someone

Question 11

What is the relationship between contracts and being under influence?

Answer 11

If a person is persuaded to enter a contract by a person with influence over them, forced or pressured into entering, the contract will be rendered unenforceable

Question 12

What may the aggrieved party of a contract seek to have when one party fails to fulfil their obligations?

Answer 12

Their rights restored, through remedies

Question 13

What are possible remedies for an aggrieved party of a contract?

Answer 13

Specific performance, damages, rescission or restitution

Question 14

What is specific performance of a contract?

Answer 14

An order of specific performance, also known as an injunction, is issued by a court and requires a person to fulfil their obligations under another contract

Question 15

What is an example of an order for specific performance?

Answer 15

A builder being ordered to finish the construction of a house

Question 16

When can an order for specific performance not be granted?

Answer 16

When the order requires a performance of personal services, such as a contract of employment

Question 17

What is the goal of specific performance?

Answer 17

It is meant to restore the parties to their original positions prior to the breach of contract

Question 18

What are damages?

Answer 18

A remedy paid in the form of money and used to compensate a party for their losses

Question 19

What is rescission?

Answer 19

The unwinding of a contract and release from an obligations that were imposed by the contract

Question 20

When does rescission usually occur?

Answer 20

When one party is in breach of the contract, the other party seeks to be released from their obligations, and any goods or money paid are returned

Question 21

What is restitution?

Answer 21

The returning of goods from one party to another due to one party not being able to pay for the goods they received