Knowledge of AQA contract law for alevel. but include 25% of the cards as cases Flashcards
What is a contract?
A legally binding agreement between two or more parties.
True or False: A verbal agreement can be considered a contract.
True, as long as it meets the necessary elements of a contract.
What are the essential elements of a contract?
Offer, acceptance, consideration, intention to create legal relations, and capacity.
Fill in the blank: Consideration must be ______ and ______.
sufficient; adequate
What does ‘capacity’ refer to in contract law?
The legal ability of parties to enter into a contract.
What is the difference between a unilateral and bilateral contract?
A unilateral contract involves one party making a promise in exchange for an act; a bilateral contract involves mutual promises between two parties.
What is ‘intention to create legal relations’?
The parties’ intention that their agreement should be legally binding.
Case: What was the significance of Carlill v Carbolic Smoke Ball Co (1893)?
It established that a unilateral offer can be accepted by performing the conditions of the offer.
What is ‘offer’ in contract law?
A proposal made by one party to another indicating a willingness to enter into a contract.
True or False: An advertisement is always considered an offer.
False, advertisements are generally considered invitations to treat.
What is an invitation to treat?
An indication that a person is willing to negotiate the terms of a contract.
Case: What was the outcome of Fisher v Bell (1961)?
It ruled that displaying a product with a price tag is an invitation to treat, not an offer.
What is ‘acceptance’ in contract law?
An unequivocal agreement to the terms of an offer.
Fill in the blank: Acceptance must be communicated to the ______.
offeror
What is the ‘postal rule’ in contract law?
Acceptance is deemed effective when posted, not when received.
Case: What is the significance of Entores Ltd v Miles Far East Corporation (1955)?
It established that acceptance must be communicated effectively, especially in instantaneous communications.
What constitutes ‘consideration’ in a contract?
Something of value exchanged between the parties.
True or False: Past consideration is valid in contract law.
False, past consideration is not valid.
What is ‘capacity’ in contract law?
The legal ability of a party to enter into a contract.
Case: What was the ruling in Minors v. R (1967)?
It determined that minors have limited capacity to contract.
What is ‘duress’ in contract law?
The use of threats or pressure to force someone into a contract.
Fill in the blank: A contract made under ______ is voidable.
duress
What is ‘misrepresentation’?
A false statement of fact that induces another party to enter into a contract.
Case: What did the case of Oscar Chess Ltd v Williams (1957) establish?
It differentiated between statements of opinion and statements of fact in misrepresentation.
What is ‘undue influence’?
Exerting pressure on someone to enter into a contract against their will.
True or False: A contract can be voided if one party was under undue influence.
True.
What is the difference between void and voidable contracts?
Void contracts are not legally enforceable; voidable contracts can be enforced unless one party chooses to void it.
Case: What was the outcome of the case of Re: B (1995)?
It ruled that a contract can be voidable due to undue influence.
What does ‘capacity to contract’ exclude?
Minors, mentally incapacitated individuals, and intoxicated persons.
What is meant by ‘performance’ in contract law?
The fulfillment of contractual obligations by the parties.
Fill in the blank: A contract is discharged by ______ when parties fulfill their obligations.
performance
What is ‘frustration’ in contract law?
An unforeseen event that makes the performance of a contract impossible.
Case: What was the significance of the case of Taylor v Caldwell (1863)?
It established the doctrine of frustration due to impossibility of performance.
What is a ‘breach of contract’?
Failure to perform any term of a contract without a legitimate legal excuse.
True or False: A minor breach allows the other party to terminate the contract.
False; only a material breach allows termination.
What are the remedies for breach of contract?
Damages, specific performance, and rescission.
Case: What was the outcome in Hadley v Baxendale (1854)?
It established the rule for consequential damages in breach of contract cases.
What does ‘specific performance’ mean?
A court order requiring a party to fulfill the terms of a contract.
What is ‘rescission’ in contract law?
The cancellation of a contract, returning parties to their pre-contractual position.
What is ‘liquidated damages’?
An amount specified in a contract to be paid in case of a breach.
True or False: Liquidated damages must be a genuine pre-estimate of loss.
True.
What is the role of the ‘offeree’?
The party who receives the offer and can accept or reject it.
What is meant by ‘unconscionable contract’?
A contract that is so one-sided it is unfair to one party.
Case: What did the case of Coutts v. Jessop (2002) establish?
It highlighted the concept of unconscionability in contract law.
What is ‘negotiation’ in the context of contract law?
The process by which parties discuss and come to an agreement on contract terms.
True or False: All negotiations lead to a binding contract.
False; negotiations may not result in a contract.
What is ‘equity’ in contract law?
A branch of law that addresses fairness and justice, often used in contract disputes.
What does ‘consequential damages’ refer to?
Damages that are not directly caused by a breach but are a consequence of it.
Case: What was the ruling in the case of Victoria Laundry (Windsor) Ltd v Newman Industries Ltd (1949)?
It ruled that consequential damages are recoverable only if they were foreseeable.
What is ‘promissory estoppel’?
A legal principle that prevents a party from going back on a promise, even if a legal contract does not exist.
Fill in the blank: Promissory estoppel requires ______ reliance on a promise.
reasonable
What is ‘agency’ in contract law?
A relationship in which one party acts on behalf of another.
True or False: An agent can bind the principal to a contract.
True, if the agent acts within their authority.
What is ‘discharge by agreement’?
Termination of a contract by mutual consent of the parties involved.
What is the purpose of ‘contractual terms’?
To outline the rights and obligations of the parties involved in a contract.
Case: What did the case of B2C Ltd v. B2B Ltd (2016) illustrate?
It illustrated the importance of clear contractual terms in preventing disputes.
What is ‘negotiated settlement’?
An agreement reached between parties to resolve a dispute without litigation.
Fill in the blank: A contract may be ______ if it is formed under false pretenses.
voidable
What is ‘default’ in contract law?
Failure to fulfill a contractual obligation.
True or False: Defaulting on a contract can lead to legal consequences.
True.
What is ‘material breach’?
A significant failure to perform that permits the other party to terminate the contract.
What does ‘remedy’ mean in contract law?
A means of enforcing a right or redressing a wrong in a contract dispute.
Case: What was the ruling in the case of Robinson v Harman (1848)?
It established the principle that a party is entitled to be restored to the position they would have been in had the contract been performed.
What is ‘unilateral mistake’?
A situation where one party is mistaken about a fundamental aspect of the contract.
True or False: A unilateral mistake can render a contract void.
False; it typically does not unless the other party is aware of the mistake.
What is ‘bilateral mistake’?
A situation where both parties are mistaken about a fundamental aspect of the contract.
What does ‘specific performance’ require?
The fulfillment of the specific terms of a contract as agreed.
Case: What was the significance of the case of Beswick v Beswick (1968)?
It reinforced the concept of specific performance in contract law.
What is ‘quantum meruit’?
A legal principle allowing recovery for services rendered when no contract exists.
What does ‘waiver’ mean in contract law?
The voluntary relinquishment of a known right.
True or False: A waiver can be implied through conduct.
True.
What is ‘third-party rights’ in contract law?
Rights granted to parties who are not directly involved in the contract.
Case: What was the ruling in the case of Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd (1915)?
It established the principle that third parties cannot enforce a contract unless they are intended beneficiaries.
