Enforcement Flashcards
Under the Contracts Act (Rights of Third Party) Act 1999, how can a third party enforce a term of the contract?
Where the contract expressly provides that he may
Where the terms of the contract purport to confer a benefit to him, and nothing else denies thy benefit
What does the doctrine of privity of contract suggest
Only parties to a contract are bound to it
Only parties to a contract can derive rights and benefits from their contract
What is agency considered?
A general commercial necessity
What is agency?
When B authorises C to negotiate with A on his behalf
Contracts effected by illigality
Contract to commit a legal wrong
Contract which promotes immorality
A contract performed illegally
A contract not formed in accordance with the procedure prescribed by a statute
What happens to contracts involving an illegality?
The courts will not enforce the contract
Will not allow the recovery of a benefit
What are the reasons for the courts treatment of contracts in living illegality?
Deter parties from such conduct
Punish wrongdoers
Preserve the dignity of the court
Reasons of public policy
What is a contract which is illegally formed?
Void from the beginning
What does Quantum Meriut mean?
A partial payment
Why are contract that offend public policy difficult to categorise?
Because public policy changes over time
What can the court do when a contract contains illegal terms?
Sever that part
When will courts enforce a restraint of trade clause?
To the extent that it is reasonable
What is the criteria for a restraint?
It must be reasonable between the parties
Must not be injurious to the public
A party who wishes to enforce a restrain of trade clause must establish what?
Legitimate interest to protect
Reasonable as to tut subject matter, area, and duration
Not injurious to the public
What is a covenant?
Z