Section 4

Question 1

What is a contract

Answer 1

A contract is an agreement between two parties that is intended to be enforcable by law

Question 2

What are verbal contracts

Answer 2

Verbal agreements are contracts that have been agreed by spoken communication, without any written documentation.

Question 3

What is a written contract

Answer 3

A written contract is an agreement made on a printed document that has been signed by both the offeror and the offeree. Written documents are legally binding.

Question 4

Offeror

Answer 4

The person who is making the offer

Question 5

Offeree

Answer 5

The person to whom the offer is made

Question 6

Acceptor

Answer 6

The offeree after accepting the offer

Question 7

What are simple contracts

Answer 7

A simple contract is a “simple agreement”between two parties which may be verbal, written, implied

Question 8

Examples of simple contracts

Answer 8

1. Going to the shop and making a purchase- the owner of the shop agrees to supply goods and the purchaser agrees to pay for them
   2.ordering food in a restaurant
   3.taking a taxi

Question 9

Specialty contracts

Answer 9

A more complex and formal written agreement also known as deeds or contracts under seal

Question 10

Each party to a specialty contract must:

Answer 10

1.sign the contract-showing that parties have accepted its terms and conditions
2.Seal the contract- contracts can be sealed with a special sealing wax or use a witness so they can be called upon to confirm what was signed and who signed it
3.deliver the contract- each party involved in the contract can must receive and identical copy of the contract

Question 11

Deeds

Answer 11

Are for the great degree of formality and are used for the sale of land mortgages and insurance, and must be made in writing with consideration.

Question 12

Deed of gift

Answer 12

A binding promise used to transfer land from one person to another as a gift, without any type of Consideration e.g a parent giving a child a piece of property.

Question 13

Contract of record

Answer 13

Something imposed by a court on a judgment in a case. The court can order a party to do or not do something. E.g pay for damages for pollution, child maintenance order.

Question 14

Legally binding

Answer 14

means that both parties must obey the terms in the contract. Failure to do so may result
in legal consequences

Question 15

Offer

Answer 15

An offer – the indication of one person’s willingness to another that they are willing to make a proposal and enter into a contract on the terms that he/she has put forward.

Question 16

How can offers be made

Answer 16

1.Letter ( Post Office )
2. Fax
3. Email, or other Social Media
4. Telephone
5. Face to Face

Question 17

Ways in which an offer can be terminated

Answer 17

1.Rejection by the offeree
2.death of either party
3.insanity of either party
4.destruction of a key element required for the performance of the contract
5.counter offer
6.expiration of the specified time
7.revocation of the offer

Question 18

Acceptance

Answer 18

occurs when the offeree agrees to the offer, thereby committing themselves to a contract.

Question 19

HOW CAN ACCEPTANCE BE COMMUNICATED?

Answer 19

●BY CONDUCT
● ORALLY
● IN WRITNG
● BY MAIL
● ELECTRONICALLY

Question 20

Conduct

Answer 20

AN OFFEREE CAN ACCEPT AN OFFER BY SIMPLY UNDERTAKING THE PERFORMANCE REQUESTED e.g. When you go to a store, and the cashier rings up your items, accepts your money and gives you the items that you paid for

Question 21

Orally

Answer 21

AN OFFEREE CAN ACCEPT AN OFFER VERBALLY

Question 22

Written

Answer 22

AN OFFEREE CAN ACCEPT AN OFFER BY WRITTEN ACCEPTANCE

Question 23

Characteristics of contracts

Answer 23

• OFFER
• ACCEPTANCE
• CONSIDERATION
•INTENTION TO CREATE LEGAL RELATIONS •COMPETENCE OF PARTIES

Question 24

What is consideration

Answer 24

•Consideration is the exchange benefit that each party gets or expects to get from
the contractual arrangement.
•IT IS SOMETHING GIVEN IN EXCHANGE FOR A PROMISE