Term 3 - Topic 3.4 (Contracts)

Question 1

Define what a contract is

Answer 1

Written agreement, which is BINDING between 2 or more parties

Question 2

What do you call it when one party breaks a term in a contract?

Answer 2

Breach

Question 3

Give another definition for ending a contract

Answer 3

termination

Question 4

Why is it best to have a contract in writing?

Answer 4

• no misunderstanding
• clarity about what will happen
  if anyone is in breach of the
  contract

Question 5

When or scenarios when a contract is terminated

Answer 5

• expires
• cancelled due to breach
• if all obligations have been met (ie. all payments have been met)

Question 6

Employment contract - entered between an employer and…..

Answer 6

employee

Question 7

Insurance contract - entered into between insurer and ….

Answer 7

insured party

Question 8

Lease agreement - Entered into between lessor and …

Answer 8

lessee

Question 9

Hire purchase agreement - entered into between a business and …

Answer 9

customer

Question 10

Rental contract - entered into between an landlord and …

Answer 10

tennant

Question 11

What details will you get in an employment contract

Answer 11

salary ; hours ; duties ; etc

Question 12

What details will you get in an rental contract

Answer 12

monthly rental ; details of the property ; what will happen if breached ; etc.

Question 13

When you ……. your contract, you break a term or terms in the agreement

Answer 13

breach

Question 14

When the parties in the contract have met all their obligations, the contract is considered ….

Answer 14

binding

Question 15

The ……of the contract must be clear

Answer 15

terms