Introduction to the Contract of Law Flashcards
What governs commercial contracts?
Commercial contracts are governed by the same legal principles that apply to everyday transactions, primarily originating from common law precedents rather than statutes or codes.
What forms the backbone of contract law?
The backbone of contract law is formed by legal principles derived from common law precedents.
Why is understanding general principles of contract law essential?
It is essential for dealing with various types of specialized contracts across different industries.
What are the key elements essential for the enforcement and recognition of contracts?
Undertakings or promises, deeds, consideration, and the nature of bilateral and unilateral contracts.
What are undertakings or promises in contract law?
They are voluntary commitments made by the parties involved, forming the basis of contractual obligations.
How do contractual obligations differ from tort duties?
Contractual obligations arise from promises made by the parties, while tort duties are imposed by law regardless of any prior promise
Give an example of a contractual promise.
An employer promises to pay an employee at the end of the month in exchange for the employee’s labor.
How are contractual duties enforced compared to tortious duties?
Contractual duties are voluntarily undertaken and enforced by mutual agreement, whereas tortious duties are imposed by law and enforced due to breach of societal norms or duties.
How can contractual and tortious duties overlap? Provide an example.
A bus company owes passengers a contractual duty under the ticket sale and a tortious duty as a general duty of care to road users.
What is a deed in contract law?
A deed is a formal document that makes certain promises binding without the need for consideration.
What are the key features required for a document to be considered a deed?
It must clearly state it is intended to be a deed, be signed by the maker in the presence of a witness, and be “delivered” indicating legal binding intention.
In what types of transactions are deeds typically used?
Deeds are mostly used for serious obligations like real estate transactions or wills.
Can contracts be made orally, or must they be written?
Contracts can be made either in writing or orally, but certain contracts must be evidenced in writing due to statutory requirements.
Give an example of an oral contract that requires written evidence due to its value.
A diamond sale worth millions can be agreed upon orally, provided there is sufficient proof that a contract existed.
What are the differences between written and oral contracts in terms of enforceability?
Written contracts are required for specific cases and are easier to prove in disputes, whereas oral contracts are common for everyday transactions but harder to enforce due to lack of written evidence.
