Law of contract Flashcards
What is meant by ‘contract under seal’?
Formal contract signed, sealed under wax and witnessed.
What are informal contracts known as?
Simple contracts
What is a unilateral contract?
Primarily a one-sided, legally binding requirement where one party agrees to pay for a specified act.
What is a bilateral contract?
Legally binding between two or more parties.
What is a void contract?
A formal agreement that is unenforceable.
What is agreement?
Offer and acceptance.
What is consideration?
The promise to pay agreed premium
What is an invitation to treat?
- An offer to make an offer when negotiations are underway.
What are the typical durations of an offer?
- A time limit or a ‘reasonable time’
- Death
- Acceptance
- Revocation
- Rejection, Counter-offer
What is acceptance?
An offer which is accepted.
What is express term of agreement?
Parties can expressly state in the agreement that it is not legally binding.
What is consideration?
Consideration is described as the price which supports a promise.
What are the five rules of consideration?
- Must be real / genuine
- Need not be adequate for both parties
- Must not be in the past
- Consideration must move from the promisee
Why are the five rules for formation of a contract?
- Offer and unconditional acceptance
- Intent to create legal relations
- There must be consideration
- Agreements must be in the form required by law
- Must have capacity to contract
What is promissory estoppel?
The essence of the doctrine of promissory estoppel is to hold
a party who makes a promise to another accountable for the
detriment suffered by the counter party who relied on that
promise
