introduction to contract law

Question 1

what are the four essential aspects of forming a contract

Answer 1

offer, acceptance, intention, consideration,

Question 2

what is a contract

Answer 2

A contract is a legally binding agreement which recognises and governs the rights and duties of the parties to the agreement and creates obligations

Question 3

define capacity

Answer 3

both parties must have the capacity to contract – they are both in a position where they can actually abide by the conditions of the agreement and able to give consent

Question 4

which examples of case law is associated with the concept that a counter offer destroys the original offer

Answer 4

Hyde v Wrench [1840]

Question 5

which example of case law is associated with the concept that a request for further information is not the same as a counter offer and does not destroy the original offer

Answer 5

Stevenson v McLean [1880]

Question 6

which example of case law is associated with the concept that acceptance by conduct counts as acceptance

Answer 6

Brogden v Metropolitan Railway Co [1877]

Question 7

what is the basic timeline of a contract

Answer 7

Invitation to treat??
Enquiry
communication
offer
maybe counter offer
maybe request for further information
acceptance

Question 8

what is a unilateral offer

Answer 8

A unilateral offer is a promise made by one party that can be accepted only by the performance of a specific act by another party. The offeree is not required to perform the action, but if they do, the offeror must fulfill their promise.
A classic example is a reward offer: if someone offers a reward for the return of a lost pet, they are making a unilateral offer. The person who finds and returns the pet accepts the offer by performing the act of returning it.

Question 9

what is a bilateral offer

Answer 9

A bilateral offer involves a promise made by one party in exchange for a promise from another party. Both parties are obligated to fulfill their promises
common example of a bilateral offer is a contract for the sale of goods: one party agrees to sell a car for a specified price, while the other party agrees to pay that price. Or a surveyor promising to survey a house in return for the client’s promise to pay his fee

Question 10

which example of case law is associated with the concept that an advertisement is an invitation to treat

Answer 10

Partridge v Crittenden [1968]

Question 11

what is another term for common law

Answer 11

case law

Question 12

what are express terms

Answer 12

the conditions of the contract. Express terms are what the parties have voluntarily decided to do. Must be incorporated by the time the contract has been formed.

Question 13

which example of case law is associated with the concept that you must be aware of the offer to accept it

Answer 13

Williams v Carwardine [1833]

Question 14

which example of case law is associated with the concept that silence in relation to bilateral contracts is not consent

Answer 14

Felthouse v Bindley [1862]

Question 15

what is the postal rule

Answer 15

An acceptance by post creates a contract at the moment of posting. Adams v Lindsell [1818]

Question 16

what is the rule on fax

Answer 16

As long as it’s within working hours, the offer is accepted the moment the fax is sent as it is instantaneous.
Brinkibon Ltd v Stahag Stahl [1983] (telex)
JSC Zestafoni v Ronly [2004] (fax)

Question 17

which contracts have to be in writing

Answer 17

*Deeds (i.e., a will)
*Consumer credit contracts
*Transferring ownership or rights over land
*Guarantee

Question 18

can parties to social and domestic arrangements have intention to be legally bound

Answer 18

no
Balfour v Balfour [1919]

Question 19

which case law states that parties to business and commercial dealings have intention to be legally bound

Answer 19

Edwards v skyways [1964]

Question 20

what does subject to contract mean

Answer 20

there is no contractual force
Chillingworth v Esche [1924]

Question 21

are gifts capable of being contractually bound

Answer 21

no
there is no consideration from both ways
Re: Cory [1912]

Question 22

what case law states that consideration must pass both ways

Answer 22

Tweddle v Atkinson [1861]

Question 23

which case law provides the exception that consideration can be past but only with professional services

Answer 23

Sale of Good and Services Act 1982 section 15 and more recently the Consumer Rights Act 2015

or

Re Casey’s Patents [1892] – when past consideration can be good consideration due to professional service, reasonable

Question 24

which case law states that usually, consideration must not be past

Answer 24

Re McArdle [1951]

Question 25

which case law concluded that consideration must have economic value

Answer 25

White v Bluett [1853]

Question 26

which case law established that practical benefit can serve as sufficient consideration even if it doesn’t involve additional payment.

Answer 26

Williams v Roffey Bros. & Nicholls (Contractors) Ltd. [1990]

Question 27

what are the 3 types of contractual terms

Answer 27

express
implied
unfair

Question 28

what is the Doctrine of substantial performance

Answer 28

The doctrine of “substantial performance” applies so as to avoid injustice. The doctrine will intervene where there has been a minute and trifling variation from the exact terms of the contract
Boone v Eyre [1779]

Question 29

what is the purpose of damages in a breach

Answer 29

to compensate not to punish

Question 30

what are Expectation Damages

Answer 30

Traditional method, aims to place the innocent party in the same position, in so far as money can do it, as if the contract had been fully performed as agreed.
-South Australia Asset Management Corp v York Montague Ltd [1996]

Question 31

what is quantum

Answer 31

Measure of damages awarded to the party who has suffered harm or loss

Question 32

what is Quantum Valebat

Answer 32

goods/materials

Question 33

what is Quantum Meruit

Answer 33

services

Question 34

what is an example of a frustrating event

Answer 34

Music hall destroyed by fire - Taylor v Caldwell [1863]