Formation of a Contract Flashcards
What are the elements of a valid contract?
- intention
- offer & acceptance
- consideration
- legality
The following describes which type of contract?
a contract in which, at the time it is formed, one party has provided consideration and the other party has a promise to fulfill in the future
unilateral contract
courts rely on a [blank] that promisors intend to be bound by the promises they make.
(once this is made, the onus shifts to the promisor to prove that the intention did not exist)
presumption of law
The following describes which type of contract?
a contract in which, at the time it is formed, both parties have a promise to fulfill
bilateral contract
What does it mean to have an “arm’s-length transaction”?
- negotied by unrelated parties (strangers), each acting in their own independent self-interest
presumed intention for a contract
What is an invitation to treat?
- an invitation to do business
- not an offer
- an expression of a willingness to negotiate an agreement
- such as an ad in a newspaper
Carlill v Carbolic Smoke Ball Co
What ways can an offer be made?
- verbally
- in writing
- through gestures (ie at an auction)
At what point is an offeror bound by their offer?
When the offoree accepts it
An offer is not valid until…
it is received by the offeree
If an offer says to accept by mail, how should you accept the offer?
by mail
The following is what type of acceptance?
The promise to do something or give up something in the future means that, at the time that the contract is formed, both parties have promises to fulfill in the future
acceptance by promise
The following is what type of acceptance?
In order to accept, you must perform that actions of the contract
acceptance by performance
The following defines what type of acceptance?
when you don’t explicitly accept an offer but follow the terms to imply acceptance
inferred acceptance
What ways can an offer be considered not accepted or no longer open for acceptance?
- rejection
- counter offer
- revocation of an offer
- lack of capacity
- lapse of time
If acceptance is made in writing, what rule applies?
The Postal Acceptance Rule
The following is an example of which contract rule?
- Contract is formed at the time of mailing, even though the offeror may not be aware of the acceptance until several days later
- Even if mail is lost or delivered late, the contract is valid
Postal Acceptance Rule
The following is an example of which type of acceptance?
When you start a trial for a new amazon channel, if you don’t say anything (are silent) you’ll enter the contract when the trial ends
acceptance by silence
Is a gratuitous promise legally binding?
no
What is a written document made under a seal called?
a deed
when one person asserts a statement as true, and the other person relies on that statement to their detriment, the maker of the statement will be estopped from denying the truth in court, even if it turns out the statement was false
estoppel based on fact
The following are elements to what type of estoppel?
- Existing legal relationship
- Clear promise or representation is made
- Promisee relied on promise or representation
- Promisee acted on promise or representation to their detriment
- Promisee acted equitably (fairly)
promissory estoppel
Courts enforce contracts with grossly inadequate consideration for a promise, provided there is equal bargaining power between the parties and no evidence of…
fraud, undue influence, or duress
What is **past consideration **and is it binding?
ac act performed, or something given before a contract is made, consideration made after is not legally binding
ie someone gives you a dress for free, you then love it so much you offer to pay them for it - it’s not legally binding because you already received the dress without the promise of consideration
The following are examples of what?
- The promise to do something that a party is already obligated to do under another contract or under a statute cannot be consideration
- Must be “fresh consideration” for a new promise
existing legal obligation
A [blank 1] is obligated to pay a [blank 2] a sum of money and this obligation is discharged once the full sum is paid
- debtor
- creditor
The following defines what contract term?
- Equitable remedy
- “As much as is deserved” implies a promise to pay a reasonable amount, even in the absence of a contractual term for price
Quantum Meruit
- relied on by someone whose occupation is to provide services or goods in a situation where payment is understood and expected
- Can only be relied on when the contract is silent as to the amount of the consideration in the circumstances where payment is clearly required
- Courts look to prices charged by similar suppliers and fix the contract price accordingly
