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Business Law > Outcome 1 > Flashcards

Outcome 1 Flashcards

1
Q

Revocation of offer (taking back offer)

A

•may be expressed or implied
•express - when offeror communicates to offere that offer is withdrawn
•implied - there is counter offer
-either party becomes insane before acceptance
-offer not accepted within a reasonable time

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2
Q

What is a counter offer with a case study

A

•Counter offer is a qualified acceptance i.e. it contains new conditions and changed nature of offer
•counter offer kills the original offer
e.g. wolf and wolf V Forfar potatoes Scottish company telexed Dutch company to sell a quantity of potatoes Dutch company telexed back with a counter offer which was rejected.dutch co telexed back to excepted original offer, forfar didn’t accept .Dutch sued for breach of contract unsuccessful as a offer lapsed when wolf rejected

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3
Q

What is acceptance with Case study

A

-acceptance is a final unqualified assent to an offer
-contract formed when offer accepted
-acceptance is only effective when communicated
-silence is no acceptance
-Acceptance must be within a reasonable time
-reasonable time as a matter of fact in each particular case
-goods that are perishable or fluctuating value accept and should be immediate
Eg
Wylie and lochhead v McElroy and son
There had been no acceptance within a reasonable time the offer had been implied withdrawn and no contract formed iron fitting after 5 weeks responded

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4
Q

Give a case study that is invitation to treat

A

Philip & co v knob lach
Defender obligated the pursuer to request information by sending lowest price for bumper hall pen £900. Pursuer thought definite offer and sent acceptance. Defender did not respond acceptance.
-first telegraphy was a mere invitation to treat and not a definite offer. In other words if persuer wished to be regarded serious contender he would of offer higher than 900

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5
Q

What is an invitation to treat

A

Is a mere indication of a willingNess to negotiate further not an offer

An invocation to treat can’t be accepted

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6
Q

What is the law for people aged between 16 and 18

A

People aged between 16 and 18 are deemed to have full contractual capacity unless they enter into a contract which is a prejudicial transaction:
An adult having a reasonable prudent would not have entered into into in the circumstance of the applicant at the time of entering into the transaction and has caused or is likely to consubstantial prejudice to the applicant

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7
Q

What is the rule of contractual capacity

A

The age of legal capacity Scotland act 1991 makes sure that people under 16 have no capacity to enter into transactions except where the:

  • transaction is one which is of a kind commonly entered into by a person that age and circumstance the
  • terms of the transaction or reasonable contract is void unless these conditions are met
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8
Q

What is the law for mental capacity

A

Insane people do not have capacity to enter into contracts

  • the law will intervene to make contracts entered into by those certified is insane to make avoid
  • law no deals with situation under the adult with incapacity Scotland act 2000 which appointed guardians who will intervene on behalf of the incapable person
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9
Q

Why want quarts in force certainty of Thames give Case study

A

Courts will not enforce a contract in which the terms are uncertain or vague

MacArthur and Lawson 1877
Lawson employee of McCarther, MacArthur agreed at start of business relationship after 2 years he would give Lawson a substantial interest by way of partnership Lawson sued him as he didn’t follow obligation courts didn’t enforce as substantial interest is too vague

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10
Q

What is the consequence of someone breaches a contract

A

Sued in the court for damages the injured party seeks a remedy for the wrong done

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11
Q

What is freedom of contract

A

Everyone has the power to choose whether or not to enter a contract

  • and to decide on the terms upon which the contract is made
  • contract have to be voluntary by your own free will or it would be valid
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12
Q

What is sanctity of contract

A

This is binding on you the contract if you enter the contract in your fee will
-if people want to enter our dad bargain your fault court want Bill you at -Scotts courts and English courts willing to interfere because bargaining powers of parties are often unequal

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13
Q

What are essential elements of a contract

A

Agreement

  • must be to contracting parties
  • intention to create legal relations we know we are going into something legally binding
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14
Q

What is agreement

A

Must be consensus in idem- a meeting of the minds on all aspects we agree on all things nothing is left to chance

Raffles v wichelhause 1864
Contract made to ship goods on peerless but there were two ships with same name departing on different dates parties referring to a different ship goods not ship no breach of contract due to the consensus in idem

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15
Q

What is pacta ilicita

A

Illegal immoral criminal agreement

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16
Q

What will courts not in force and why

A

Illegal immoral or criminal agreements

social and domestic agreements

social work contracts

because there can not have been intention to create legal relations

17
Q

Give a case study of immoral agreement

A

Pearce v brooks
Lady asks to build court but she is a prostitute courts not involved as not able to find it in their hearts to enforce it

18
Q

What is the law for betting contracts

A

Until the gambling act 2005 you could not sue a betting shop if they didn’t pay you your winnings

19
Q

What are institutional writers

A

Historic individuals who have recorded the development and contributed to our understanding of Scots law the writings are the foundation of Scots law and contained discussions of various principles using issue of morality, reason and court decisions from custom and practices, Scots courts

Sir Thomas Craig published jus feudle 1655

20
Q

What is laps of offer

A
  • offer can be withdrawn by the offeror at any time until it is accepted
  • exception where offeror promises not to withdraw the offer for a specified period of time
  • where offer isn’t expressly withdrawn it will lapse after a reasonable time
21
Q

What is primary legislation and where is it contained

A

This is superior legislation passed by either UK or Scottish parliament it is contained in the original three treaties Paris 1951 Rome 1957 Eurarom 1957 these treaties lay out the broad goals which members of states are trying to achieve

22
Q

Give an example of a custom

A

Stirling park and co v digby brown and co 1995

23
Q

What document have to follow a bill

A

A financial memorandum policy memorandum

a statement of the legislative competence

24
Q

What are the three types of bills that may be introduced in the Scottish parliament

A

Executive bill by cabinet secretary’s and ministers members bill by MSP committee bill by covenant of Parliament

25
Q

What is the private members bill

A

These are introduced and sponsored by private members including MPs these don’t often make it into laws as there is an enough support from other MPs to get very far in the process they also take second place to the government tell them something to get squeezed

26
Q

How many types of public bills are there and what are their names

A

There are two types of public bills private members bills and the government bill

27
Q

What is a private bill

A

Private bills only apply to a very small group of people or particular organisations they do not apply to society or the public across-the-board e.g. London development act 2003

28
Q

What is a government bill

A

These are introduced and sponsored by the government this bill has the support of the government and often succeed in getting through parliament because the government has the majority in the House of Commons MPs more

29
Q

Process of a UK bill

A
  • First Reading title of Bill read out copies printed not yet debated vote taken to see a house wants to progress further
  • second reading general principles debated public may hear of it vote taken majority are required to go further if Bill votes out it will go no further and may be re-introduced next Parliamentary year
  • committee stage committee of MP examine bill and make amendments all political parties involved some may have special knowledge or interest
  • report stage committee will have to give a progress report about Bill to house as house will want to know what changes have been made third reading house well debate final version off bill and vote is taken
30
Q

What is a contract

A

I’m legally binding agreement which has consequences if you don’t carry out your part

31
Q

What is a contractual promise

A

A contractual promised contains a legal obligation e.g. bus to take you location when you pay every contract is an exchange between two or more people the contract is made where two people agree not necessarily when money is exchanged

32
Q

What is breach of contract

A

A party fails to carry out his or her contractual obligation

33
Q

Which institution in the UK is the most powerful and explain why

A

The Westminster Parliament is the most powerful because the simple act of the Westminster Parliament is all that’s required to abolish the Scottish parliament basically as West Minister created the Scottish parliament they have the power to take it away even though It has a devolved government in Scotland West Minister will continue to make laws for Scotland in many important areas for example defence immigration form policy there are known as reserved matters

34
Q

What are the stages of the Scottish bill

A

Stage one Parliamentary committee considers the bill reports to the parliament and if agreed they refer back to the committee
- stage 2 detailed consideration of the bill amendments proposed by MSP and executives
-stage 3 final consideration of the bill and vote taken by parliament
Then royal assent

35
Q

What is royal assent

A

This is when the bill is submitted with in 4 weeks and can be challenged by various senior ministers but if there are no chAllenges the bill will be submitted within 4 weeks, queen will sign the letters patent and will be recorded In the register of the great seal

36
Q

Explain how carlil v smokeball was an offer

A

The carbolic Smoke Ball manufactures were so confident in its properties that they stated in their advert they would pay £100 to them ever but a smoke ball and used it accordingly and still cut through the added that they deposited £1000 in bank to show sincerity in the matter miss Carlo bought and used it accordingly and still got blue mess Carlile accepted offer by performing actions required by advert miss Carlo therefore entitled money this case illustrates that can be implied acceptance of offer

37
Q

Formula for answering questions

A
  1. Identify the issue
  2. Identify the law relating to the issue
  3. explain relevant law
  4. apply law to the facts
  5. Conclude with advice to the parties

Business Law (3 decks)

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