Rules and theory of Contract Flashcards
What are the essential elements required to form a valid contract?
Offer, acceptance, consideration, and intention to create legal relations.
True or False: A contract can be formed without consideration.
False
Fill in the blank: The _____ is an offer made in a contract that is accepted by another party.
Acceptance
What is the legal term for the value exchanged in a contract?
Consideration
Which case established that consideration must be sufficient but need not be adequate?
Thomas v Thomas (1842)
What is meant by ‘intention to create legal relations’?
It refers to the parties’ intention to enter into a legally binding agreement.
True or False: A verbal agreement is not a valid contract.
False
What type of contract does not require consideration to be enforceable?
A deed
What does the term ‘capacity’ refer to in contract law?
The legal ability of a party to enter into a contract.
Which parties are generally considered to lack capacity to contract?
Minors, mentally incapacitated individuals, and intoxicated persons.
Fill in the blank: An offer can be revoked before _____ is made.
Acceptance
What is a unilateral contract?
A contract in which one party makes a promise in exchange for an act by another party.
Which case involved the concept of ‘invitation to treat’?
Hyde v. Wrench (1840)
True or False: A counter-offer constitutes a rejection of the original offer.
True
What is ‘specific performance’ in contract law?
A legal remedy that compels a party to fulfill their contractual obligations.
What is the difference between a void contract and a voidable contract?
A void contract is unenforceable from the start, while a voidable contract may be enforced until one party chooses to void it.
Which doctrine allows a party to recover benefits conferred under a contract that is unenforceable?
Quantum meruit
Fill in the blank: A contract that is formed without the intention to create legal relations is _____ .
Void
Which case enforces contracts must be made with ‘Good Faith’
(clothes)
Victoria Laundry v Newman
True or False, Contracts involving the sale of illegal goods will be enforced as long as all elements of a contract are present
False, Dann v Curzon. The court will not enforce criminality
