HKU Space day 2 Contract Flashcards

Contract Law

1
Q

Conisderation

A

Consideration means the subject of the contract

(Ie; bag of chips when purchasing)

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2
Q

Contract

A

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)

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3
Q

Subsidiary legislation

A

By implied nature, a contractual relationship with the other party

MTR is a public servant, you are the public

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4
Q

Elements needed to form a valid contract

A

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

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5
Q

Reasoning for written agreements

A

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

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6
Q

Ordinances

A

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

Stops the exploitation of consumers

Ie; Sales of Products, ordinances

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7
Q

Chitty on Contracts

A

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

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8
Q

Damages

A

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

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9
Q

Contract formation

A
  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
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10
Q

bilateral contract

A

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.

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11
Q

unilateral contract

A

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

Giving money to a person after finding a pet

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12
Q

Objective V Subjective

A

Subjective, up to Interpretation
Objective, A matter of Fact

“good” = Subjective
“Facts” = Objective

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13
Q

The Objective Test

A

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

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14
Q

Mistakes in contracts

A

Chwee Kin Keong v. Diiglandmall.com [2004]

Snapping up contract issue within the contract.

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

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15
Q

Invitation to treat vs offer

A

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)

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16
Q

Gibson v. Manchester City Council [1979]

A

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

17
Q

What is considered inv to treat

A

Auctions, Displays, Advertisments and requests to tender

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

18
Q

PSGB v. BSC

A

Display of goods in bilateral contracts are a invitation to treat

19
Q

Carlil v. Carbolic Smoke Ball Company [1893]

Key case

A
  • 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

20
Q

Acceptance

A

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

21
Q

General rules of Acceptance

A

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

22
Q

Acceptance subject to the contract

A

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

23
Q

Subject to contract

A

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

24
Q

Entire Agreement Clause

A

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.

25
Q

Acceptance by Communication

A

*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

26
Q

Prescribed method of Acceptance

A

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

27
Q

Silence as Acceptance

A

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

28
Q

Higher Purchase

A

Not outright buying a car, instead paying monthly installments.

Reach purchase price, similar to a mortage

29
Q

Chappel & Co v. The Nestle Co [1960]

A

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

30
Q

Other Factors

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