Brainscape's Knowledge GenomeTM

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


See full index

GMGT: 3300 Comm Law Final > Law of Contract: Offer, Acceptance, Consideration > Flashcards

Law of Contract: Offer, Acceptance, Consideration Flashcards

You may prefer our related Brainscape-certified flashcards:
MBE flashcards MPRE flashcards Civil Procedure 1L flashcards
1
Q

Business relies on ____ and regulated by ____

A

Exchanges with are regulated by contracts

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

CMA

A

Certified Management of Accountants

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

Contract definition from CMA

A

mutual agreement of at least two parties to do or refrain from something. Parties create rights and duties that did not exist prior to relationship. Enforced by court of law so created rules of conduct they are obliged to observe and follow.

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

What does the contract create between 2 or more parties CMA definition

A

legal obligations or laws governing their relationship for own purpose.

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

CMA definition laws of contract

A

legal rules parties must follow to establish own rights and duties

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

5 main components of CMA contract definition

A
  1. Contracts are mutual agreements courts will enforce
  2. two or more parties
  3. There is an exchange
  4. Law is created through contract which both parties follow rules and obligations.
  5. There is freedom in design
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Free contract
- type of political approach
- what does it differentiate and describe the creation of liabilities
- Entering the contract what do we create?

A
  • liberal capitalist
  • Contractual liability - we choose provisions of liability vs tort creates liability obligations
  • Free to design and create the laws defining contract and relationship
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Contract gives degree of?
- why is it important
- what is it more important than in the contract design

A

Certainty
dealing with value for business
freedom in contract design

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

For a contract to be created what needs to be present? List 6 elements

A

All 6 elements:
1. Offer
2. Acceptance
3. Consideration
4. Intention to Create legal relations
5. Capacity
6. Legality of Contract

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

Contract Offer:
most significant element

A

Tentative promise, condition or request made by one party. When accepted transformed into contract and no longer tentative.

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

Contract Offer: Offeror

A

person subject to a condition or containing a request to other party

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

Contract Offer: Offeree

A

Person accepting the condition or request

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

Contract Offer:
1. Who is bound to carry out the promise
2. Who is bound to carry out the condition or request

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

Contract Offer:
What does contract metamorphoses mean?

A

Offer accepted you have contract so offer is contract in draft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Contract Offer:
Distinction of attempt to elicit an offer or invitation to do business

A

Through advertisements and display shelves, stores making invitations to elicit an offer from you at a price which they will then accept

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

Contract Offer:
Pharmaceutical Society of Great Britain V Boots Cash Chemist Case
describe

A

Regards display in stores and advertisement. Conclusion for policy reasons then logic. Too many cases would clog up courts. Customer picks up product from the shelves and doesn’t amount to an acceptance of an offer to sell.

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

Contract Offer:
Pharmaceutical Society of Great Britain V Boots Cash Chemist Case Ratio and why created

A

It is an offer by the customer to buy, and no sale until buyer’s offer to buy is accepted by acceptance of the price, created for certainty and efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Contract Offer:
What happens when offer lapses?

A

It is not accepted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Contract Offer:
3 reasons for offer to lapse

A
  1. Offeree fails to accept offer within time frame specified
  2. Offeree fails to accept offer within reasonable time if time frame unspecified
  3. One of the parties die or become mentally insane prior to acceptance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Contract Offer:
Revocation Principle

A

offeror may revoke or withdraw an offer from offeree at any time before acceptance, even when it has promised to hold for specified time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Contract Offer: Revocation Principle - 2 ways to keep offer open and enforceable

A

offer made under seal
option contract is created -> contract where someone promises to keep option open for agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Contract Offer: Fundamental Breach and what clause doesn’t apply

A

Fundamental portion of contract is breached and exception of liability clause no longer applies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Contract Offer: counter offer

A

Bargaining takes place and offers exchange back and forth (volley of offer)

24
Q

What happens if a party accepts but then changes even one aspect

A

you don’t have acceptance as now the original offer has variation , must resubmit

25
Q

Other rules regarding offer: Offer is communicated by offeror through

A

writing, orally or gesture but must be unequivocal

26
Q

Other rules regarding offer: offer cannot be accepted by offeree until they have _______ _______ of it so must be ______

A

first learned
communicated

27
Q

Other rules regarding offer: Standard Form Contracts and examples

A

presented to general public on high volume basis etc tickets and passes, contracts when accepted

28
Q

Other rules regarding offer: Standard Form Contracts Provisions (3)

A
  • No negotiation, take or leave it
  • providers of service go far to protect themselves
  • exception of liability clause for consumers
29
Q

Standard Form Contracts - Exception of Liability Clause

A

if person does not know terms of contract they cannot be bounded by it unless reasonable steps were taken to bring the contractual term to their intention

30
Q

Contract Offer: Contra Preferentum (Ambiguous contract)*

A

If multiple interpretations of a contract the court will read it against the interest of the party that created it

31
Q

Contract Offer: Rejection

A

offeree rejects then original offer terminated

32
Q

Contract Offer: Revocation
1. Also known as
2. What happens
3. What needs to be done for it to be effective withdraw?

A
  1. Buyers remorse
  2. Withdrawal of an offer and prevent acceptance (offeror point of view)
  3. Communicated to offeree by offeror or reliable source
33
Q

Contract Offer: Revocation
1. How could it still be accepted despite revocation?

A

offer arrives at destination but revocation did not reach the offeree and they signed/agreed.

34
Q

Contract: Acceptance

what is unequivocal?

A

made in unequivocal form by words or conduct

no doubt

35
Q

Contract: Acceptance
Offeror and their acceptance control

A

Offeror has full control over the mode and method of acceptance, state required methods of communication of acceptance

36
Q

Contract: Acceptance
What can the offeror require for acceptance (2)

A
  1. Actual receipt by mail or other mode
  2. performance of an action
37
Q

Contract: Acceptance
What can the offeror require for acceptance - Carlyle vs smoke ball case description and ratio

A

person did the act, inhaled smoke ball but didn’t buy but essentially accepted contract.

Ratio: performance is sufficient

38
Q

Contract: Acceptance
Offeror will not be bound unless and until they receive the acceptance, and before they revoke but what are 2 exceptions?

A
  1. Mail Exception
  2. Telegram Acceptance
39
Q

Contract: Acceptance
Mail Exception

A

offeror chooses mail as means of acceptance then it is accepted when the offeree returns it in mail to address and stamped. So if offeror tried to revoke but already returned in their mailbox, nothing they can do

40
Q

Contract: Acceptance
Telegram Acceptance

A

Instantaneous methods like phone, text, fax and not bound until reaches offeror from offeree

41
Q

Contract: Acceptance
How could an Offer terminate BEFORE acceptance (x4)

A

Rejection
Lapse
Counter
Revocation

42
Q

Contract: Acceptance
1. Certainty of an offer
Certain or uncertain:
i) agreement to agree
ii) arbitrator or formulas sets amount

A
  1. contract and preceding offer must be certain in wording.
    i) uncertain as agreeing later but this is vague
    ii) certain as can conclude price
43
Q

What law governs particular contract?

A

Lex Causae - governing law: determined by principles of conflict of law

44
Q

Contract: Consideration

A

Essence of contract as it is the exchange or bargain.

45
Q

Contract: Consideration - contract to be valid….

A

each and every party to a contract must give up consideration

46
Q

Contract: Consideration
Three categories of consideration

A
  1. Property
  2. Service/labour
  3. Money
47
Q

Contract Consideration: Property Category (2 types)

A

Personal and real Property

48
Q

Contract Consideration: Personal Property 2 types and description

A

Chattels - tangible like possessions or objects
Choses in action - intangible like contractual rights, shares

49
Q

What is a property assignment?

A

transfer a choses in action

50
Q

Contract Consideration: Gratuitous Promise and what is it not enforceable by and why?

A

promise without returning consideration and not enforceable by laws of contract as no exchange of consideration

51
Q

Manifestations of Gratuitous promise x3

A
  1. past consideration
  2. existing legal duties
  3. Rule of Foakes and Beer
52
Q

Manifestations of Gratuitous promise: Past consideration

A

No consideration, reward for act previously done is not binding, reciprocity does not make for new contract

53
Q

Manifestations of Gratuitous promise: Existing Legal duties

A

“A” bound by existing contractual duty to B, later B promises to pay A something extra to perform same obligation is not binding

54
Q

Manifestations of Gratuitous promise: Existing Legal duties example with the sailor and when to pay higher??

A

Sailor wold be hired to make transport trip, then decide want to increase pay. Captain agrees but later pays original amount.

Pay higher if sailor does another duty or have some new consideration confirmation like a seal

55
Q
  1. Manifestations of Gratuitous promise: Seal?
  2. Seal and common Law
  3. Seal and Equity Law
A
  1. Element of consideration is covered
  2. Nominal token and sufficient for common law (recognized as acceptance, agreement)
  3. Need more consideration, seal is not enough, need transfer of substantial consideration
56
Q

Manifestations of Gratuitous: Rules of Foakes and Beer
Ratio and why

A

creditors gratuitous reduction of debt for a payment is not enforceable for contract because no consideration was done as he just said “I’ll forgive payments

57
Q

Manifestations of Gratuitous: Rules of Foakes and Beer
How to make enforceable??

A

Person who was lent money must use a nominal consideration to cover themselves, etc seal or smaller payment. Once creditor receives then he is not able to collect remaining loan balance. Now consideration given up

GMGT: 3300 Comm Law Final (12 decks)

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