pob Flashcards
What is a contract?
A contract is an agreement between two or more people which is legal
What is the difference between a social agreement and a contract?
It must be enforceable by law and it must have a legal relationship between them.
What are some characteristics of a contract?
Some characteristics of a contract are it must be legal, there should be no fraud and both parties must be able to carry out their side of the contract.
What are the parties to a contract?
Offeror { the person who makes the offer} and the offeree { the person who accepts the offer}
What are the three types of contracts?
Simple contract, Specialty contract {this is also called a deed and it must have the following a seal, signature of parties, and one or more witnesses} and Contract of record {eg like a judge}
What is a breach?
A breach is when one of the parties breaks their contract.
What are ways a contract can be terminated or discharged?
Mutual agreement
Death
Time
Breach
The contract was illegal
What are some legal issues that come with contracts?
It must have a date, and a witness and it also must be legal and be signed by both parties.
What is an implied condition?
Those conditions that even when not expressed in words or written in the contract are considered to be warranted by the law to be present in the sales contract.
Contravention condition
If the client is found by the court to have breached the order without reasonable excuse
Invalid contract
If a person, who concludes the contract is not competent to make agreements,
What are documents used in trade?
Tenders
Invoice
Trade discount
Debit note
Credit note
What is insurance?
An agreement between an insurance provider and a person who wants to be financially protected in the event of a loss.
What is the difference between insurance and assurance?
Insurance is based on the likelihood of a bad event happening while assurance is based on the fact that something is going to happen like death.
Principles of insurance
It must be legal
Insurable interest
Proximate cause
