TOPIC 5: Contract Law Flashcards
A gift is not a contract because: it lacks an invitation to treat. it is not recorded in writing. it lacks consideration. it lacks an intention to create legal relations. it lacks offer and acceptance.
It lacks consideration
In relation to the law of contract, select the most accurate statement from the following:
Agreements between family members or close friends, or arising out of some other social circumstance, are never regarded as valid contracts.
An enforceable contract exists when an agreement between two parties is accompanied by a mutual intention to be legally bound.
Contracts never have to be in writing to be enforceable.
Advertisements are always regarded as invitations to treat.
An enforceable contract exists when an agreement between two parties is accompanied by a mutual intention to be legally bound.
Cancellation of a contract is:
never available as it causes uncertainty in trade and is a breach of section 9 of the Fair Trading Act 1986.
the right to withdraw acceptance within a reasonably short time frame after the contract is first made.
available as a response to serious breaches of contract only.
a right of any innocent party in response to any breach of contract.
available as a response to serious breaches of contract only.
Which of the following statements is correct:
The time for calculating damages is when the person whose contract has been broken, files court proceedings.
Damages are calculated to put the innocent party in the same position as if the contract had not been broken.
Damages is the only remedy available in New Zealand law for breach (breaking) of contract.
Specific performance is never granted for breach of a contract.
Damages are calculated to put the innocent party in the same position as if the contract had not been broken.
Failure to pay for a round of drinks for your friends at the pub, as promised, is likely to be:
no breach of contract as promises to buy alcohol are illegal and against public policy.
no breach of contract as the promise is not legally binding.
a breach of contract entitling your friends to cancel the contract with you.
a breach of contract entitling your friends to cancel their friendship.
no breach of contract as the promise is not legally binding.
Consideration in the law of contract may be best described as:
an extra bonus provided by one party to another for performing a contract in excess of the first party’s expectations.
something given or offered up by one party in return for a benefit conferred by another party.
an effort made to accommodate the demands of another party, where the party giving consideration is in a stronger legal position to enforce the bargain.
a common intention by the potential parties to give the bargain commercial footing, as opposed to a mere domestic arrangement.
something given or offered up by one party in return for a benefit conferred by another party.
Nathaniel is the owner of a shop. He places a notice in the window advertising the sale of televisions. In the law of contract the notice is: A completed contract. A contractual offer. A supply of information. An invitation to treat.
An invitation to treat
Which of the following statements is INCORRECT:
There was no consideration for Mrs.Carlill’s agreement with the Company so there was no contract. But she still got damages because of the principle in Donoghue v. Stevenson.
An acceptance of an offer of a unilateral contract is also complete performance by the offeree of his or her obligations under the contract.
Mrs. Carlill had an agreement with the Carbolic Smoke Ball Company because it was clear its advertisement was intended to be taken seriously as an offer.
Mrs. Carlill accepted the Company’s offer by buying the smoke ball, using it as directed and catching influenza.
There was no consideration for Mrs.Carlill’s agreement with the Company so there was no contract. But she still got damages because of the principle in Donoghue v. Stevenson.
Which of the following statements is INACCURATE:
A clause providing for disputes to be resolved by an arbitrator is enforceable by the court.
Where a contract says “subject to solicitor’s approval” the solicitor’s approval may not be withheld without a good reason and that reason will usually be on the grounds that there was some legal objection or problem with the agreement not apparent to the parities at the time.
The parties to a contract may use an appropriate clause to exclude completely the jurisdiction of the court.
The parties to a contract may use an appropriate clause to exclude completely the jurisdiction of the court.
Which of the following would be considered to be an “invitation to treat”?
A knife displayed in a shop window.
All of these options.
A prize winning bull in a pen at a cattle market.
Goods displayed on the shelves in a pharmacy.
A motorcycle advertised for sale in a local newspaper.
All of these options
Which of the following statements is correct:
An “invitation to treat” is where the owner of the supermarket offers a bonus such as “two for the price of one” or “if you buy this product your name will go in a draw for a holiday in the Bay of Islands”.
In Carlill v Carbolic Smoke Ball Co Mrs Carlill was able to sue the Carbolic Smoke Ball Company but they could not sue her.
In a supermarket setting, the owner of the supermarket is making an offer by putting products on shelves where they can be selected by the shoppers.
In the case of Harvey v. Facey the owner had to sell “Bumper Hall Pen” because he made an unambiguous offer to sell it and that offer was accepted.
In Carlill v Carbolic Smoke Ball Co Mrs Carlill was able to sue the Carbolic Smoke Ball Company but they could not sue her.
Which of the following statements is correct:
An “invitation to treat” is where the owner of the supermarket offers a bonus such as “two for the price of one” or “if you buy this product your name will go in a draw for a holiday in the Bay of Islands”.
An offer and an acceptance may be made by the conduct of the parties when the offeror or the offeree (as the case may be) knows of the conduct.
In a supermarket setting, the owner of the supermarket is making an offer by putting products on shelves where they can be selected by the shoppers.
An offer and an acceptance may be made by the conduct of the parties when the offeror or the offeree (as the case may be) knows of the conduct.
Which of the following statements is correct:
According to New Zealand law a valid lease for 9 months must be in writing.
According to New Zealand law a valid contract to buy goods over $200,000 must be in writing.
According to New Zealand law the transfer of a licence to mine land does not have to be in writing.
According to New Zealand law a guarantee must be in writing to be enforceable.
According to New Zealand law a guarantee must be in writing to be enforceable.
Consideration is:
not legally required by a party to a deed.
optional, as long as parties to a contract act in good faith.
measurable only in financial terms.
All of the above.
not legally required by a party to a deed.
Implied terms:
are unenforceable unless they are recorded in writing.
are disallowed by the courts as they create vagueness and uncertainty.
are never expressed in a contract.
are unenforceable unless they are approved in advance by the court.
must be expressed in a contract.
are never expressed in a contract
