Law Of Contract

Question 1

Main ingredients of a contract

Answer 1

Idea of agreement
The need to create legal obligations
(Consensus In idem)

Question 2

Doctrine of consideration

Answer 2

consideration is an act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.

Question 3

Revocation of an offer

Answer 3

Cancellation

Withdrawal by the offeror before offeree accepts unless a time limit is set for acceptance

Question 4

When it lapses

Answer 4

Once lapsed it cannot be accepted
Upon death/offeror becomes bankrupt
Upon destruction of subject matter
In event of supervening illegality

Question 5

Exclusion clause

Answer 5

A clause in the contract which seeks to exclude / limit one party’s liability for breach of contract

Question 6

Restrictive covenants

Answer 6

Binding conditions that are written into a property’s deeds/contract by a seller to determine what a homeowner can/not do with their house / land under particular circumstances
Nordenfallen v maxim nordenfelt guns and ammunition co ltd (1894)

Question 7

How to discharge a contract - performance

Answer 7

Once both parties have fulfilled their obligations and performed in the full legal relationship between them with regards to the contract is at an end

Question 8

Discharge by consent

Answer 8

When both parties agree that all existing perform obligations under the contract will be abandon

Question 9

Discharge - compensation

Answer 9

The setting off of one obligation against another - settle the difference

Question 10

Discharge by notation

Answer 10

The OG obligation is extinguished and replaced by a new contract between the same parties

Question 11

Discharge by confusion

Answer 11

When the same person / company becomes both creditor and debtor - one cannot have an obligation to oneself

Question 12

Discharge by prescription

Answer 12

This is an area of law whereby rights and obligations are discharged through simply the passage of time - 5yrs and 20yrs

Question 13

Self help remedies for breach of contract - rescission

Answer 13

The innocent parry rescinds the contract ie brings it to an end

Question 14

Self help remedies for breach of contract - rention

Answer 14

Innocent party wirhholds payment until the breach is remedied

Question 15

Self help remedies for breach of contract - lien

Answer 15

Innocent party has legal possession of goods belonging to the other and withholds return of them until performance is made

Question 16

Judicial remedies for breach of contract

- action for payment of debt

Answer 16

Failure to make loan repayments

Question 17

Judicial remedies for breach of contract

- specific implement

Answer 17

This action seeks performance under the contract other than payment of debt eg delivery of goods ordered and paid for

Question 18

Judicial remedies for breach of contract

- interdict

Answer 18

Where the court grants an order for someone to stop doing something

Question 19

Judicial remedies for breach of contract

- damages

Answer 19

These along with actions for repayment of debt are the most commonly seen in our courts

Question 20

Liquidate damages

Answer 20

Damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach

Question 21

Illiquidate damages - the requirement for causation

Answer 21

Damages can only be recoverable for loss which was directly caused by the breach of contract eg builder knocks down an internal wall in error

Question 22

Illiquidate damages - duty to mitigate loss

Answer 22

Where a contract has been breached causing loss the innocent party is under obligation to take reasonable steps to mitigate that loss

Question 23

Illiquidate damages- remoteness or loss

Answer 23

In order for the damages to be recoverable they must not be too remote form the breach of contract

Question 24

Quantum Meruit

Answer 24

A reasonable sum of money to be paid services rendered/ work done when the amount due is not stipulated in a legally enforceable contract