Module 11 - Entering Into Contracts Flashcards
Definition of a contract
An agreement that the law will enforce
What are the essential elements of a valid contract?
Consensus in idem
Consent
Consideration (England only)
Capacity
Formality
No legal prohibition
What are the general features of an offer?
It should be definite
Capable of being accepted
The person making the offer must intend to be legally bound by it
How may an offer come to an end? (Just two)
Either expressly or
Impliedly
Does Acceptance have to match the offer in every respect in order to form a contact?
Yes
Does the general rule of acceptance require the offeror to receive the acceptance (communication)
Yes
Does an agreement have to be supported by valid consideration in order to form a contract?
In England only - yes
What is a void contract?
One which is flawed to such a serious degree that no contractual obligations ever existed
What is a voidable contract?
One which is less seriously flawed than a void contract
And which proceeds as a valid contract until steps are taken to have it set aside
Contracts are most often discharged by what?
Performance
Both parties complete duties and contract comes to an end
Contracts are most often discharged by performance, but can also be discharged by?
Agreement
Frustration
Breach
Remedies for breach of contract include:
Damages
Rescission
Specific implement
Interdict
Retention
Lien
Misrepresentation can be:
Fraudulent
Negligent
Innocent
With misrepresentation, the innocent party may seek what?
A remedy
What is a typical remedy?
Damages
Contract definition
An agreement that gives rise to obligations which the law will enforce
Essential elements of a valid contract
Offer plus acceptance
Consideration
Consent
Capacity
Formality
No legal prohibition
Is consideration required under English law?
Yes
Does consideration apply under Scots law?
No
What are the general features of an offer:
It should be definite
Capable of being accepted
Person making the offer intends to be bound by the consequences of it being accepted
What is an express offer? (How is an express offer given?)
Written or spoken
Can an offer be implied by the actions of the offeror?
Yes
Is supply of information an offer to sell?
No
Is an ‘invitation to treat’ an offer?
No