T5 : Contract Law

Question 1

Essential Elements for Contract

Answer 1

Agreement (Offer and Acceptance)
Intention for creating legal relations
Consideration

Question 2

What are the basic rules of an offer

Answer 2

Must be communication to an offeree
offer can be made to more than one person
Offer can be expressed or implied by conduct. No wording or formality is required
The word offer doesn’t have to be there, can suggest an offer was intended

Question 3

What are some rules regarding revocation (withdrawl)

Answer 3

Withdrawal must be communicated to offeree, notice required or advised by third party and must be before acceptable because that means contract has been made.

Question 4

Lapse

Answer 4

Offer lapse if its not accepted within time stated, if not accepted in a reasonable time or if counter offer is ade

Question 5

Acceptance

Answer 5

Agrees to be bound by the terms of the offer, requires communication ( exception is acceptance by postal), offer can only be accepted by offeree, silence does not mean acceptance (Felhouse vs Bindley), online communication is considered to have been received when it comes into attention of recipient or when it enters the system.

Question 6

Reject offer

Answer 6

end of offer, cannot be accepted later on if offeree changes mind

Question 7

Counter offer

Answer 7

Precise terms not accepted but offeree wants to negotiate

Question 8

invitation to treat

Answer 8

invitation to make an offer, precedes the making of an offer

Display of goods doesnt not mean offer (pharmaceutical society of great britain vs Boots cash chemist)

Question 9

Intention for creating legal relations

Answer 9

Agreements in business context= assumption of an intent to create legal relations
Domestic/ Social agreements = not business context
Balfour vs Balfour = At time of arrangment they were estranged, thus = business context = creating legal relations

Question 10

Consideration

Answer 10

Promise to do something, not the actual performance of promise
Consideration must be real
Past consideration is not valid

Question 11

Deeds

Answer 11

legal document which can avoid considerations
Signed and witnessed thus enforceable. Used to ensure that promises are met without proving the requirements of a contract

Question 12

Express and implied terms

Answer 12

Express = expressly agreed upon, do not have to be written
Implied = not expressly agreed,

Question 13

Bilateral and unilateral contracts

Answer 13

Bi = promise on both sides of contracts
Unilateral = only promise on one party

Question 14

Puff

Answer 14

Expression or exaggeration by a sales person or in an ad

Question 15

Contract form

Answer 15

3 elements + oral or written
exceptions is with land, need to be in writing + signed
Gurantees also an exception = agreement that person answers to another person for debt, liability or default. Must be signed by gurnator