Introduction

Question 1

What is contract law?

Answer 1

• Legally enforceable promises
• Need an exchange of value/exchange of promises

Question 2

Contract

Answer 2

Agreement giving rise to obligations which are enforced or recognized by law.

Question 3

3 Theories of Contract?

Answer 3

1. Moralist
2. Rights-Based
3. Instrumental

Question 4

Moralist Theory

Answer 4

• Owe moral obligations to keep promises
• State is justified in enforcing moral obligations

Question 5

Rights-Based Theory

Answer 5

• Focusing on the right that the promisee has acquired
• The state is justified in intervening to protect the promisee’s rights

Question 6

Instrumental Theory

Answer 6

• The state is justified in enforcing promises to promote overall social goods
• Not moral obligations of people, but promises that have social utility
• Ex: Economic Analysis

Question 7

What constitutes freedom of contract?

Answer 7

Individuals are free to choose:
1. Whether to enter a contract
2. With whom to contract
3. On what terms

Question 8

Remedy Definition

Answer 8

a form of court enforcement of a legal right resulting from a specific suit

Question 9

Expectation Damages

Answer 9

• Plaintiff is entitled to be put in the position they would have been in had the contract been performed
• Primary source of remedy in contract breaches

Question 10

Equitable Remedies

Answer 10

1. Injunction
2. Specific Performance

Question 11

Injunction Remedy

Answer 11

-Judicial order that restrains a person from beginning/continuing an action
- Given when a monetary award won’t validly address harm incurred by plaintiff
- Much less common than expectation damages

Question 12

Specific Performance Remedy

Answer 12

Ex: A has to give Subaru to B

Question 13

Elements of a Contract

Answer 13

1. Agreement
2. Offer
3. Terms

Question 14

What is Agreement element of a contract?

Answer 14

a mutual promise and undertaking from two competent parties

Question 15

What is Offer element of a contract?

Answer 15

expression of willingness to contract on certain terms, made with intention that it’ll be binding as soon as it’s accepted

Question 16

What is Terms element of a contract?

Answer 16

• the promises contained in the contract
• Informing idea behind a contract is that there’s a meeting of the minds
• An offeror lays out the terms, and the offeree accepts the terms when accepting the offer

Question 17

Requirements to make a contract legitimate?

Answer 17

1. Consideration
2. Intention
3. Certainty
4. Voluntariness
5. Sometimes in Writing

Question 18

Ratio from Harvey v Facey case?

Answer 18

A quotation of price is not evidence of an indication to sell.

Question 19

Ratio from Canadian Dyers Ass. Ltd. v Burton?

Answer 19

• Merely quoting a price on its own is not an offer
• Dyers Test: Objective test of the intention of parties
• look to language used and facts and context

Question 20

Ratio from Pharmaceutical Society of GB v Boots Cash Chemists?

Answer 20

Items on display are an invitation to treat, the customer makes the offer at cash, and the cashier accepts the offer.

Question 21

Ratio from Carlill v Carbolic Smoke Ball Co?

Answer 21

• Advertisements of unilateral contract and advertisements of rewards for returned property are “invariably” treated as offers.
• An advertisement can constitute a unilateral contract, which can be accepted by fulfilling the conditions of the contract; no formal acceptance required