HKU Space day 2 Contract

Question 1

Conisderation

Answer 1

Consideration means the subject of the contract

(Ie; bag of chips when purchasing)

Question 2

Contract

Answer 2

Legally enforceable agreement that contains the rights and responsibilities of the contracting parties.

• Oral
• Writing

Requires a benefit out of it (buying candy is also a contract)

Question 3

Subsidiary legislation

Answer 3

By implied nature, a contractual relationship with the other party

MTR is a public servant, you are the public

Question 4

Elements needed to form a valid contract

Answer 4

**Mutual assent **(offer + acceptance);
Consideration (bargained for legal detriment)
No defenses to formation

Question 5

Reasoning for written agreements

Answer 5

High value transactions, ie; real estate. Meaning some contracts must be in writing

Question 6

Ordinances

Answer 6

Ordinances define the rights and contexts that consumers and distributors have.

Stops the exploitation of consumers

Ie; Sales of Products, ordinances

Question 7

Chitty on Contracts

Answer 7

Chitty on Contracts is one of the leading textbooks covering English contract law.

Question 8

Damages

Answer 8

What consumer should have get back from a contract that was breached

Question 9

Contract formation

Answer 9

1. Offer, Can be a monetary
2. Consideration
3. Acceptance
4. Intention to create legal relations
5. Sufficently enforcing the agreement

4. Presumption of gift to family members

1. $10 for a bag of Chips
2. Bag of Chips
3. Purchasing the bag of Chips
4. Contracting relationship asking two firms to do part of Construction
5. Completing the terms of the contract to a “sufficent” standard

Question 10

bilateral contract

Answer 10

Contract created by mutual promise of performance. The most common type of contract.

You agree to pay a certain amount of money in exchange for title of a home.

Question 11

unilateral contract

Answer 11

Requires full performance as method of acceptance; binding once performing party begins performance

Giving money to a person after finding a pet

Question 12

Objective V Subjective

Answer 12

Subjective, up to Interpretation
Objective, A matter of Fact

“good” = Subjective
“Facts” = Objective

Question 13

The Objective Test

Answer 13

It focuses on how a reasonable person would percieve the offerors conduct or expressions, instead of the offerors thought process.

Whether an offer existed is assessed Objectively, rather than Subjectively

Question 14

Mistakes in contracts

Answer 14

Chwee Kin Keong v. Diiglandmall.com [2004]

Snapping up contract issue within the contract.

Issue with the pricing (should be $3600 instead of $66)

Question 15

Invitation to treat vs offer

Answer 15

An invitation to treat allows the other party to make an offer.

Whereas in an offer, there is usually only acceptance or rejection of it.

(Selling a footballer)

Question 16

Gibson v. Manchester City Council [1979]

Answer 16

Case was a dispute around contract breaches.

Vauge statements ie; May be prepared to sell, was merely an invitation rather than a formal offer

Vauge terms such as “may” and “will consider” did not consitute a binding offer

Contract drafting typically uses simple english to provide the clearest provisons

Question 17

What is considered inv to treat

Answer 17

Auctions, Displays, Advertisments and requests to tender

Adveritisments for unilateral contracts are more likely to be regarded as offers

Question 18

PSGB v. BSC

Answer 18

Display of goods in bilateral contracts are a invitation to treat

Question 19

Carlil v. Carbolic Smoke Ball Company [1893]

Key case

Answer 19

• Defendant place an advert stating that anyone who used their product but still catch influenza can claim for 100 which was depsoited in the bank
• The plaintiff did that, but the defendenat refused to pay, claiming that the advert was an inivtation to treat

(Not a binding offer)

Adveristment for Unilater contract (with sufficent intention to be bound) is an offer

Question 20

Acceptance

Answer 20

“Final and unqualifed expression of assent to the terms of an offer”

Question 21

General rules of Acceptance

Answer 21

To Bind an offerer an acceptance must be
1. Final and not Tentative
2. Unqualifed, no conditions or Variations
3. Objectivley Manifested
4. Expressed through conduct

Question 22

Acceptance subject to the contract

Answer 22

An acceptance made subject to contract to contract is not unqualifed, meaning it is not a binding acceptance

Beacuse neither party intends to be bound until a formal contract is made meaning each party reserves the right to withdraw until a binding contract is made

Lawyers need to draft a settlement agreement

Question 23

Subject to contract

Answer 23

Exceptions: Subject to contract is waived if there is subsequent conduct shwos that the parties intended to be bound

By way of conduct/words some of the original contractual rights are given away to make the other party to be bound by words or communication

Question 24

Entire Agreement Clause

Answer 24

EA clauses are designed to ensure that the arrangements that have been agreed between the parties is limited to what is actually written in the contract and nothing more.

Question 25

Acceptance by Communication

Answer 25

*General Rule: * Acceptance must be communicated to the offeror

Exceptions:

**Waiver: ** It is more liekly to be implied in the unilateral contracts rather than bilateral contracts

Postal rule: An acceptance is effective once it is posted, not when it is recieved

Question 26

Prescribed method of Acceptance

Answer 26

Offerors can specify how they want the offer to be accepted/prescribed

However, offerees can use a different method if
* the alternative method is no less avantegous to the offferor
* the offeror did not make the prescribed method mandatory before the offeree’s suggestions

Question 27

Silence as Acceptance

Answer 27

Silence can not be accepted as an acceptance.

But it can be considered as a conduct meaning there are exceptions where silence can constitue acceptance

Question 28

Higher Purchase

Answer 28

Not outright buying a car, instead paying monthly installments.

Reach purchase price, similar to a mortage

Question 29

Chappel & Co v. The Nestle Co [1960]

Answer 29

Consideration must be sufficent but need not be Adequate
- The defendats nestle contracted with a company to buy several recordings of music
- The plaintiffs were owners of the copyright in the music
- Defednats offered to sell records at a discounted price if a customer provided 3 wrapping bar

Emphasising choclate bar wrappers as sufficent consideration

Question 30

Other Factors

Answer 30

• Third party rights
• Exclusion Clauses
• Mis Rep
• Common mistakes
• Peformance and Discharge
• Breach of Contract
• Damages of Breach of Contract
• Specific peformance