Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MO5 > Law Of contract > Flashcards

Law Of contract Flashcards

1
Q

What are the two types of Contract?

A

Contracts under seal (formal in writing and witnessed)

Simple Contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a unilateral contract?

A

One person is legally bound

e.g. a reward for lost property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a bilateral contract?

A

Both parties legally bound

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 5 essentials for a contract to be formed?

A 
An agreement 
Intention to create legal relations
Consideration
Be in the form required by law (if any)
Capacity to Contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How is an agreement reached for a contract to be made?

A

Offer & Acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What type of offer is an ad or the display or price marked goods?

A

An invitation to treat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a true offer?

A

The offeror intends to be bound immediately

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When can an offer be withdrawn?

A

Any time before acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Are domestic and social arrangements legally binding?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is Consideration?

A

“The price which supports the promise”

e.g. I agree to gove you my bike for £50
Unless you agree to pay or give something in return then there is no Consideration and the contract is not enforceable by law

It is the provision of something in exchange for something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the rules of consideration when drawing up a contract?

A

Must be real or genuine
Does not have to be adequate (fair)
Must not be past
Must move from the promisee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What types of contract are required to be in a certain form?

A

Not many
Contracts under seal = deeds, these need to be signed and witnessed
A lease for 3+ years must be by deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What groups have special rules for Capacity to Contract?

A

Minors
Mentally ill
Drunk
Corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What types of contracts need to be in writing? (5)

A 
Bills of exchange 
Cheques & promissory notes 
Transfer of shares in a company 
Some consumer credit (hire-purchase) 
Contracts of Marine insurance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the types of terms?

A

Express

Implied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are express terms in contracts (general)?

A

Are based on the words sooken by the parties or written down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are implied terms in general contracts?

A

Terms implied by fact (not actually stated by presumed)

By custom or usage (the custom of the market)

In law

18
Q

What are implied terms by fact?

A

One thst is not actually stated but is presumed to be intended

Goes without saying

19
Q

Why are standard terms used?

A

Used for all customers
Saves time & simplifies
Risk of abuse though because Joe Soap will not normally read and cannot negotiate anyway

20
Q

Which rules are applied to control standard terms?

A

Common law rules - if one party includes an exclusion clause this must be made clear to the other party

21
Q

Who does Unfair Contract Terms Act 1977 apply to?

A

Parties acting in the course of business

22
Q

What are the rules about terms in a contract under UCTA 1977?

A

No one can exclude liability for death or injury by negligence

Contract Liability - if one party is acting on the others written terms of business, other party cannot exclude or restrict liability for breach of contract

23
Q

What are the Consumer Rights Act 2015 rules around contract terms?

A

Cannot exclude or restrict liability for death or bodily injury from negligence

Cannot exclude implied terms

24
Q

How can terms of a contract be classified?

A

Conditions and Warranties

25
Q

What is a warranty in Contract terms?

A

Affects only minor aspect of the agreement

Injured party can claim damages but not terminate

26
Q

What is a Condition in Contract terms?

A

Remates to an important aspect of the agreement “goes to the root”

Victim has right to claim damages and terminate the agreement

27
Q

How do defective contracts arise?

A 
Illegality 
Improper pressure
Mistake
Misrepresentation
Non-disclosure
28
Q

What makes a contract illegal?

A

Contrary to law
Contrary to public policy
Contracts in restraint of trade

29
Q

How is an insurance contract illegal?

A 
Same as general contracts and: 
No Insurable Interest
Purpose of contract is illegal
Unlawful use of property
Close connection with a crime
30
Q

How is a contract discharged?

A

By performance
Breach of contract
Frustration
Discharge by agreement

31
Q

What remedies are available for a breach of contract in general contracts?

A 
Termination
Damages
Specific Performance & Injunctions 
Other
- action for an agreed sum
- claim for restitution
- action in ‘quantum Meruit’ as much as earned or deserved
32
Q

What are the limitations of actions in general contract law?

A

Goverened by Limitation Act 1980

  • 3yrs in a claim for Personal Injuries
  • 6yrs in an action on a simole contract
  • 12yrs in action brought on a speciality contract (deed)
33
Q

What is Privity of Contract?

A

A doctrine that restricts the rights and duties created in contract to the persons who originally made it

34
Q

When can a 3rd party enforce a contract?

A

If the contract provides they can
The contract purports to confer a benefit on the 3rd party
3rd party mist be identified by name
Or they belong to a general to a general class of people identified in the contract

35
Q

What is a ‘chose (thing) action’?

A

A contractual right
Valuable but intangible
Cannot be seized, only enforced
e.g. the right to recor money

36
Q

What is a ‘chose in posession’

A

A piece of property

Can be seized or controlled

37
Q

What are the two most common types of assignment in contracts?

A

Statutory Assignment

Equitable Assignment

38
Q

What is Statutory Assignment under the Law of Property Act 1925

A

The assignment of a debt or ‘chase in action’ is transferred to the assignee along with legal rights

  • must be absolute
  • in writing
  • expressly made in writing to the debtor
  • no need for Consideration as can be a gift or used for future debt payable
39
Q

What is Equitable Assignment of a contract?

A

If assigning a contract to another but cannot meet all the requirements for a Statutory Assignment, an Equitable assignment can be ised.
There must be a clear intention to assign
- by the assignor informing the assignee that they transfer the ‘chase’ to them
- bu the assignor instructing the debtor to discharge the obligation to the assignee

40
Q

What rights cannot be assigned to another in contracts?

A

Rights under ‘personal’ contracts
These are where it would be unreasonable to expect the 3rd party to carry out their obligation with anyone other than the original party
e.g. car insurance

41
Q

Can obligations in a Contract be transferred?

A

Not normally
Not without the consent if the other party and assignee
One party can DELEGATE their obligations, this is not Assignment because thr original oarty is still liable

Can cancel a debt by ‘novation’
A owes B £100
B owes C £100
They can agree that A will pay C

42
Q

What Assignment can happen within Insurance contracts?

A
  1. Assignment of the subject matter
    - does not auto assign the policy
    - normally a new contract is set up instead
  2. Assignment of the Benefit
    - the right to recover money, a ‘chose in action’ can be assigned
    - contract is not assigned, just the benefit
    - simply put ‘the proceeds of a claim can go to thr assignee’
  3. Assignment of the Contract itself
    - personal contracts are not freely assigned so insurance cannot
    - marine cargo & life policies are exceptions

MO5 (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions