PowerPoint 4 Flashcards
Contracts
A legally enforceable agreement.
Do contracts have to be written?
No.
Is a simple promise legally enforceable?
No.
Elements of a contract:
- Intention to create legal relations.
- Meeting of the mind (offer and acceptance).
- Exchange of value (consideration).
Consensus Ad Idem
Meeting of the minds.
Intention to Create Legal Relations
Pledging to support a campaign is not an intention to create a legal relation, but a case where someone is selling something and someone agreeing to buy it is a type of a legally binding agreement.
The intention to create legal relations is assumed to exist when you deal with ___, but presumed to not exist when you deal with ___.
Strangers, family.
Meeting of the Minds
- Parties must mutually agree to terms.
- One party proposes terms through an offer.
- Other party agree to terms through an acceptance.
___ ___ ___ ___ must be applied to prove parties intended to create legal relations.
Objective test of intention.
Objective Test of Intention
What would a reasonable person believe? The test must be applied at a time of purported contract, and not in hindsight.
When is the contract complete in a typical sale?
When the money changes hands.
Invitation to Treat
Implied terms in an advertisement. Advertisements and catalogues presumed to be invitations.
Offers vs. Invitation to Treat
An offer is a contract where you cannot change your mind, while an invitation is not yet a contract.
Offer may be terminated before ___.
Acceptance.
Offer ends upon:
- Revocation.
- Lapse of time (stated or reasonable).
- Death.
- Rejection.
- Counter offer.
The reasonable person test being used for the lapse of time ___, as different contexts require different time frames.
Varies/differs.