Law Flashcards
1
Q
What is a contract?
A
- Agreement more than in informal/vague promise
- Legally binding
- Innocent party is entitled to compensation for losses if breached
2
Q
Why are contracts used?
A
- Setting expectations
- Clarifying risks and how they are managed
- Confirming ownership rights
- Time restrictions
3
Q
Key elements of a contract
A
-
Offer
- Definite promise; must be clear and certain
- Basic terms of agreement and evidence/intention that no further bargening will occur
- Invitation to treat: Different to an offer; is an invitaion to make an offer
-
Acceptance
- Orally/in writing
- Must correspond with offer - no variations
- Counter-offer can be made -> Battle of the Forms
-
Consideration
- Based on notion of reciprocity; cant have something for nothing
- Law doesnt normally interfere
-
Intention
- Parties must intend to create legal relations
- In commercial context assumption made that legal relations are intended
- Negotiations usually on a ‘subject to contract’ bases
*
4
Q
Battle of the forms
A
Arises when 2 parties wish to enter int a contract and each try to incorporate their T’s+C’s
Last T+C’s to be sent are incorportated
5
Q
Key contract points
A
- Don’t have to be in writing
- Lack of written ontract may mean misunderstandings etc.
- Some MUST be in writing (eg. those for transfer of land)
6
Q
Discharge of contract
A
- Bring a contract to an end
- Can be on completion of all terms of contracyt
- Parties may wish to vary contract by agreement
- Can be automatically discharged if become impossible to carry out (eg. acts of God)
- Breach of terms can entitle innocent party to compensation and to terminate contract
7
Q
Breach of contract
A
- Contract usually sets out what happens if breached
8
Q
Remedies of breach of contract
A
- Where parties cannot reach ammicable decision, courts will seek to place innocent party in same position as if contract had been performed
9
Q
Diminution v Cure
A
- Claimant may pay 3rd party to remedy breach and recover costs of doing so
- May claim for decerase/difference/diminution in value that has occured due to breach
- Court may decide which is more reasonable
- Court decides if cost of cure is proportional and if claimant intended to effect the cure
10
Q
Remedies of breach of contract
A
- Awards for non-financial losses (mental distress, personal injury etc.)
- Non-compensatory damage awards - go beyond requirement to place requirement in position as though contract was performed
- can punish defendant for breach but very rare
- Specific performance: breaching party compelled to perform obligations under contract at courts discretion
- Injunction may be granted requiring party to do/not do something under the contract
11
Q
Court System
A
12
Q
Limitation Period
A
- time to bring a claim
- Generally, claimants have 6 years to bring claim after contract breached
- IF contract executed as deed, claimant has 12yrs
13
Q
Pre-action protocols
A
- Pre-action protocols are rules and deadlines the parties should follow
- Before any legal court action can commence
- Purpose: encourage the parties to be transparent, identify issues and try to settle these issues between them
- There are different pre-action protocols depending on the type of claim – construction and engineeringdisputes are governed by their own distinct protocols
- Where no pre-action protocol exists, the parties are expected to comply with the generic“overriding objective”
- The court also expects alternative dispute resolution to have been considered
14
Q
Alternative Dispute Resolution
A
- Defined as a “collective description of methods of resolving disputes otherwise than through the normal trial process
- Types of ADR include:
- Mediation
- Adjudication
- Negotiation
- Arbitration
15
Q
Mediation
A
- Non binding
- Neutral party assits in reaching an agreement
- Mediator agreed or appointed
- Settlement agreement signed
- Parties remain control of whether or not to settle - more flexible than other forms of ADR