Lesson 1 Flashcards
What are the 3 Classifications of law ?
1.Common law and equity
2. Public law and private law
3. Criminal law and Civil law
What is specific performance ?
It relates to a court order to carry out contractual duties
What is an Injunction?
Relates to a court order to stop doing something
What is a rescission ?
Relates to a court order cancelling a contract
What is public law ?
Concerns relations between individual and the state , also how local authorities exercise their powers
What are the 3 subsections of public law ?
1.Constitutional law
2. administrative law
3. Criminal law
What is private law ?
Concerns the relationships between citizens , individuals, businesses and small groups
What are the 6 main areas of private law ?
- Contract law
- Company law
- Law of tort
- Property law
- Family law
- Trusts
What is the difference between civil courts and criminal courts : what are there objectives
Civil courts objective is to seek to compensate individuals who have suffered loss or injury by another person
Criminal courts seek to punish those who have committed a criminal offence
What is direct legislation ?
Process of creating a new law
What is delegated legislation ?
Law passed as a result of a change in an existing law
What is a statutory instrument?
Allows An accord of parliament to be passed without the need for parliament to pass it
What are Bylaws ?
Laws made by local authorities
What is an Order in council
Relates to the government passing laws / legislation through the privy council in times of emergency. It evades the uses the parliamentary process
What is the Legislative Process in stages ?
- Drafting
- First reading
- Second Reading
- Committee stage
- Third reading / report stage
- House of lord approval
- Royal Assent
- Publication
What is Case Law ?
This is where laws are made by a judge by adding to existing laws. Many areas of laws have been created by judges making rules in cases.
What are major sources of laws in the English legal system ?
The outcomes of previous cases and the ruling by the judge in that case
What is meant by Precedent ?
This is a previous decision that current or future cases refer to when making a judgement
What are the two types of precedent ?
- Binding precedent
- Persuasive precedent
What is meant by binding precedent ?
Where the judge must follow the reason for the decision previously made
What is meant by Persuasive Precedent ?
This is where the judge in the case may at his own discretion follow the precedent but it’s not necessary. These judgements are made in lower courts
Why is Law so present in Accounting ?
Because the work carried out by an accountant can have serious legal consequences for both themselves and the client
Who would a business enter into a contract with ?
Suppliers
Customers
Employees
What are the 6 things that just be present when forming a contract ?
- Offer
- Acceptance
- Consideration
- Legality
- Intention
- Capacity
What is meant by offer ?
Definite statement of willingness to be bound to a contract. Requires and offeror and offeree
What are the 3 terms used when cancelling a contract and what do they mean ?
Rejection - offer can be rejected by offeree to make a counteroffer
Revocation - withdrawal of an offer by the offeror
Lapse - expired time frame / death of offeree
What is an invitation to treat ?
Invitation to treat is an invitation from one party to another to make an offer
What is meant by Acceptance , and what does it imply ?
This is the unconditional agreement to terms of the offer.
It implies that the rest of the contract will go ahead
What is meant by the term consideration ?
This is where both parties exchange an amount or object that is then a bargain enforceable by law
What are the 5 criteria of consideration ?
sufficient - must have value , even if only minimal
Legal - exchange should not be illegal
Timely - consideration must not be in the past , must take place at time the contract is made
Executed - consideration is made at the time the contact is made
What is capacity ?
Each person entering a contract must have the mental capacity to enter into a contract other wise it is not strong.
Eg - minors
- persons of unsound mind
- people under influence
What is legality ?
Not possible to enter a contract if either party of that contract are breaking the law.
What is intent ?
Intent is where both parties must have intent to enter into a legally binding contract
What are terms and conditions of a contract
These are the responsibilities of both parties and the remedies of both parties if the contract is breached
What is the difference between terms and representations ?
This is when the offeror uses persuasive promises to try to get the offeree to sign into the contract , however it may never become part of the contract
What are express terms ?
These are terms that must be specifically entered into the contract to be enforceable
What are implied terms ?
Terms that are not directly included In the contract but are still part of the contract
What are conditions and warranties
Conditions - go to the root of contract , non performance of conditions can result in damages , discharge or both
Warranties - these are subsidiary and less important than conditions and can only result in damaged being claimed
What is an exclusion clause and what are the 2 conditions that must be satisfied ?
It is intended to limit the liability of one party in the event of a breach , it must include conditions
- it must be incorporated into the contract
- its working must cover the loss
What is a valid contract ?
Had all the features of a contract and is legally binding
What is a void contract ?
A contract that is not legally binding as a result of illegal tasks or impossible tasks
What is a voidable contract ?
A voidable contract is where a valid contract can become null in void , an example is a contract between and adult and a minor
What are the 4 ways a contract can be discharged ?
- discharge by agreement
- discharge by breach
- discharge by frustration
- discharge by performance
What is a discharge by breach and what are the 2 types of breach ?
Where one party breaches the conditions of a contract either completely or satisfactorily
- actual breach
- anticipatory breach
What is discharge by agreement ?
Where both parties involved agree to discharge the contract
What is a discharge by Frustration?
Where through no fault of either party, something happens that makes it impossible to carry out the duties or processes included in the contract
What is a discharge by performance ?
Where one or both parties do not perform as per contract and as a result it is deemed as non performance and the contract is then discharged
What are the 2 types of remedies for breach of contract ?
- Damages
- Equitable remedies
What are damages and what is the purpose of them ?
Damages are usually monetary compensation , the idea is to put the claimant into the same financial position they would have otherwise been in if the contract was not breached
How is the amount payable calculated ?
Damages are calculated by taking the loss of the bargain , this includes money paid to the claimant and any losses incurred as a result of the breach of contract
What are penalty clauses ?
A clause that threatens huge damages if any breach occurs , however because it is often unreasonable the courts will not hold it to be valid and therefore it is not legally binding enforceable
Why are Liquidated damages ?
These relate to a reasonable pre-estimated amount expected to incur in a Breach of contract. There is usually an explanation of how these figures were determined and calculated. This is legally enforceable by the court
What are Equitable remedies ?
These are where the monetary amount of compensation is inadequate where the breach is concerned . It is awarded by the court and will not be included in the contract .
What is meant by action for price ?
This is where one party has failed to pay for what is contractually agreed so the court orders them to pay what is owed
What is quantum merit ?
This is where the court will order the defendant to pay for the work that has been completed up tot the certain date it ceased . Eg a painter and decorator has completed 50% of a job and the owner of the house orders them to stop and dosent pay for the work completed.
What is the consumer rights act 2015?
Provides statutory control over consumer contracts , provides protection from terms that are unfair and stops any exclusion clauses that a business may include to limit liability for damages payable to a consumer
