Contracts Part 2 Flashcards
When can a contract be unenforceable?
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
What are the rules regarding minors and contracts?
A minor, who is a person under 18, is deemed not to have the capacity to consent to contracts
What are the only exceptions when minors can enter contracts?
If the contract is for necessities such as food and medicine, employment, education or tuition
What is the relationship between contracts and illegal purposes?
A contract is unenforceable if it is for an illegal purpose, notwithstanding consent
What is an example of illegality of purpose occurring in a contract?
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
What is an example of an honest mistake made by both parties in a contract?
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
What is the relationship between honest mistakes and contracts?
If there is an honest mistake made by both parties than the contract may be unenforceable
What is the relationship between one party making a mistake and contracts?
If only one party has made a mistake and through no fault of the other party, than the contract will usually remain enforceable
What is the relationship between deception and contracts?
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
What is an example of deception in a contract?
A car salesman claims a car has been driven 70,000KM when it has actually travelled 270,000KM and sells it to someone
What is the relationship between contracts and being under influence?
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
What may the aggrieved party of a contract seek to have when one party fails to fulfil their obligations?
Their rights restored, through remedies
What are possible remedies for an aggrieved party of a contract?
Specific performance, damages, rescission or restitution
What is specific performance of a contract?
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
What is an example of an order for specific performance?
A builder being ordered to finish the construction of a house
When can an order for specific performance not be granted?
When the order requires a performance of personal services, such as a contract of employment
What is the goal of specific performance?
It is meant to restore the parties to their original positions prior to the breach of contract
What are damages?
A remedy paid in the form of money and used to compensate a party for their losses
What is rescission?
The unwinding of a contract and release from an obligations that were imposed by the contract
When does rescission usually occur?
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
What is restitution?
The returning of goods from one party to another due to one party not being able to pay for the goods they received
