Freedom Of Contract Flashcards
What is freedom of contract?
Parties are free to enter a legal contract of their choice, setting out their rights and obligations.
What are the components of a contract?
A contract starts with an agreement, which involves an offer and an acceptance.
What is an offer in a contract?
The offer consists of the terms by which you are prepared to be bound, which must be certain and communicated.
What is acceptance in a contract?
Acceptance is an agreement to all the terms of the offer.
What happens if there are vitiating factors in a contract?
If there is misrepresentation or economic duress, the law may declare the contract void or voidable.
What are implied terms in a contract?
Implied terms are inserted by law into the contract, which neither party may have agreed to.
What is an example of an implied term?
Consumer rights protections in contracts between businesses and consumers aim to protect the consumer.
Does the law’s protection of consumers conflict with freedom of contract?
Yes, it moves away from the idea of a freely negotiated deal under the freedom of contract theory.
What is the argument for maintaining freedom of contract?
If you do not like the terms on offer, you can choose not to enter the contract, preserving your freedom of choice.
