Legal

Question 1

Define ‘Invitation to treat’

Answer 1

An invitation to commence bargaining.

Question 2

Define ‘Gratuitous Promise’

Answer 2

A promise made where no consideration is provided by the other party.

Question 3

Define ‘Counter Offer’

Answer 3

An offer which alter the terms of the original offer (and cancels it).

Question 4

For real consent, what mustn’t be present?

Answer 4

1. Mistake about the subject matter
2. Misrepresentation
3. Duress
4. Undue influence
5. Legality of contract- subject matter must be legal

Question 5

What are the terms of a contract?

Answer 5

1. Expressed
2. Implied
3. Conditions
4. Warranties
5. Unfair terms

Question 6

What are the defences in contract law?

Answer 6

• an element didn’t exist
  1. A party lacked capacity to form a contract
  2. Lack of real consent
  3. Subject matter was illegal

Question 7

What are the ‘remedies’ under contract law?

Answer 7

1. Damages
2. Injunctions
3. Order of specific performance
4. Rescission
5. Restitution

Question 8

What are the elements of a valid contract?

Answer 8

1. Intention to create a legal relationship
2. Agreement (offer+acceptance)
3. Consideration

Question 9

What’s is a standard form contract and its Advantages and disadvantages?

Answer 9

A pre-prepared contract where the counter party must simply state their name and sign it.
Unfair terms are most commonly found in these.
Pros: Quick and inexpensive
Cons: No ability to negotiate terms

Question 10

Define two advantages and disadvantages of VCAT and courts.

Answer 10

VCAT
Pros: Inexpensive, both parties are bound by the ruling
Courts
Pros: If he wins he would win back money payed to go to court, can claim a far greater sum through the courts.