Law of Contract Flashcards
To form an agreement enforceable by law, the following elements must exist:
I. Proposal / Offer
II. Acceptance
III. Consideration
IV. Intention to create legal binding relation
V. Capacity to contract
What is a bilateral contract?
A bilateral contract is an agreement between at least two people or groups.
_____________ defines an offer as the readiness of the person who makes the offer to create a legal relation and to be bound by the law, with the terms of the proposal are agreed upon by the acceptor.
S 2(a) of the Contracts Act 1950
The supporting case for offer is __________.
Carlill v The Carbolic Smoke Ball Company
Define Invitation to Treat.
It is a mere declaration of willingness to enter into negotiations; it’s not an offer, and cannot be accepted as a form of a binding contract.
The supporting case for Invitation to Treat is __________.
Partridge v Crittenden
Termination of offer can be done by :
- Acceptance
- Rejection
- Counteroffer
- Revocation of Offer
When the proposer communicated the revocation of the proposal to the other party before its acceptance.
S6 (a) Contracts Act 1950
By lapse of time prescribed in the proposal for its acceptance.
Ramsgate Victoria Hotel v Montefiore
Where the acceptor fails to fulfil a condition precedent to acceptance.
S6 (c) Contracts Act 1950
___________ provides “when the person to whom the proposal is made signifies his assent thereto, a proposal is said to be accepted: a proposal, when the accepted becomes a promise”
S2(b) Contracts Act 1950
____________ provides “the acceptance must be expressly in some usual and reasonable manner communicated”
S7 (b) Contracts Act 1950
Can silence amount to acceptance?
No
Where the use of the post is in the contemplation of the parties; the acceptance is complete as soon as a letter is posted with a duly written address of the offeror and dropped in the post box.
Postal Rule
Define Intention to create legal relation
Any agreement made between the parties will only become a binding contract if both parties intend to make the contract enforceable
Name any 3 cases pertaining to Intention to create legal relation
I. Balfour v Balfour
II. Merritt v Merritt
III. Edwards v Skyways Ltd
IV. Jones v Vernon’s Pools ltd
V. Rose and Frank co v Crompton (JR) & Brothers
Consideration is defined as a promise where each party to the agreement must receive benefit and detriment is provided in _____ .
Section 2(d) of Contracts Act 1950
Executor consideration is defined as _________.
when one promise is made in return for another promise
Supporting case for past consideration is ___________
Kepong Prospecting Ltd & S.K. Jagathesan v Schmidt & Marjorie Schmidt
_____________ provides that any agreement which is made without consideration is still valid if it is expressed in writing and registered under the law for the time being in force for the registration of such documents, and is made on account of natural love and affection between parties standing in near relation to each other
S26(a) Contracts Act 1950
Supporting case for S26(a) Contracts Act 1950 is _________
Re Tan Soh Sim
Supporting case for adequacy of consideration
Phang Swee Kim v Beh I Hock
Privity of Contract supporting case ______.
Dunlop Pneumatic Tyre Co Ltd v Selfridge Co ltd
Every person is competent to contract must be above 18 and of sound mind
S.11 Contracts Act 1950
Define S 69 Contracts Act 1950
i. The necessaries have been supplied to the minor
ii. The minor is also liable for necessaries supplied to his dependents
iii. The supplier of necessaries can only claim for reimbursement (reasonable price)
iv. The minor is nor personally liable and this means he is liable to pay only if he has the property to do so.
v. Necessary – required by the minor like food, shelter, clothing etc
The supporting case for S 69 Contracts Act 1950
i. Roberts v Gray
ii. Nash v Inman
iii. Fawcett vs. Smethurst
S13 of the Children and Young Persons (Employment) Act 1996
allows a minor to enter into a contract of services provided it benefits the minor
Any agreement with a mentally insane person, the agreement will be ______.
void
A contract can be discharged by:
- agreement
- performance
- frustration
- breach
Supporting case for Discharge by performance
Chua Ngah Chin V Ng Kie En
_____________ provides, ‘After the contract is made, to do the act becomes impossible or because of some event, the contract becomes frustrated and void
S57(2) Contracts Act 1950
Supporting case for discharge by frustration
Taylor v Caldwell & Berney v Tronoh Mines Ltd
Supporting case for discharge by breach
Paradine v Jane
Hadley v Baxendale (1854) laid down the test on the remoteness of damages, which are:
Rule of remoteness
Rule of mitigation
The types of damages are
✓ Substantial damages
✓ Nominal damages
Quantum meruit supporting statute
S71 Contracts Act 1950
Types of injunction
i. Prohibitory injunction
ii. Mareva injunction
____________ provides that an agreement without consideration is valid if it is a promise to pay wholly or in part a debt
S26(c) Contracts Act 1950
Age of Minority Act 1971 supporting case is _____.
Rajeswary & Anor v Balakrishnan & Ors
Contract of Scholarship supporting case ….
Government of Malaysia v Gurcharan Singh & Ors
