Topics 1 & 2 Flashcards
What are the 3 elements for contract formation?
- Consideration, Intention to be bound, offer and acceptance
How does an agent complicate the offer & acceptance in property? Explain this across the three main methods of sale
- Agent is intermediary with the ability to accept on behalf of the vendor, but not commit the vendor. This is with the exception of a very temporary time period after an auction close.
What is the clause in the Property Act 2007 that affects property contracts
S24 PLA 2007 - In writing and signed by the enforced-against party
What are the two types of terms in a contract?
Express and implied
What are rebuttable presumptions?
They are presumptions the court makes about contracts depending on the context. For instance, bus is typically formal in oral, whearas, social is not.
What are the various ways a revocation of offer can be done?
- By oral or written conduct up until acceptance or via lapse of reasonable period of time
What are the exceptions that will invalid contracts, even with the necessary elements
Lack of capacity, illegality, and unauthorization from directors in case of companies
Explain the Four Corners doctrine and give one example of exception
Confined to contract document. WIth exception of pre done oral agreements
Can a bidder remove their bid at Auction?
Yes - this is confirmed by the Fair Trading Act 1986 S36 as well
Can a vendor remove their property at Auction?
Yes - at any point until close
Explain how the reserve price interacts with the withdrawl ability for the vendor, as well as the ability to make vendor bids and vendor terms
- Withdrawl — vendor can’t withdrawl once met
- Vendor bids – cannot make past
- Vendor terms - must disclose if there is one, but not what it is
Who can make vendor bids
The vendor bid or ONE authorized oerson
Explain the legal interpretation of unilateral vs bilateral contracts
Unilateral - one way, if you do X you get x
Bilateral - exchange of promises
EXPLAIN the two different types of conditions
- Precedent - no contract until the condition satisfied
- Subsequent - Contract but no contract if not satisfied
Explain the three different types of things one can do involving the parties involved in a ADLS SPA
Nomination [normal, liable still, other carry out transaction]
- Assignment [Give benefits, retain burden]
- Novation [clean break]
What is the default position on GST in the ADLS SPA
INcl
With the ADLS SPA default, when is the deposit patyable and when does it accrue interest
- Imm. upon execution, 3 working days
What is the limitations of Requisitions in ADLS SPA
- Good title,
- Only cancel if goes to the root of tilte
How long is the requisitions period?
10 working days or at settlement if settlement is earlier
What does a subdivision effect the requisitions period
5 day extensions from issue
Explain the timings involved in the LIM condition
5 days to get the other party the LIM from agreement date. 15 days to object
Explain the timings involved in the LIM condition
5 days to get the other party the LIM from agreement date. 15 days to object
Explain what the privity of contract means [2 main things] and if there is an exception to this?
Privity of Contract
- Only parties to can enforce the contract, the contract cannot enforce obligations on parties not to the contract
Exception
- CCLA Part 2, Subpart 1: If someone has a promise within that confers benefit and is sufficiently designated
- 2 elements: Promise made within AND sufficient designation within.
What was the main ratio of the Closurepac Case?
That the first element of CCLA Part 2, Subpart 1 failed
What are 3 types of mistakes and what is the legal premise around CCLA P2, Subpart 3
Legal Premise
- Creating verification for actual mistakes so to balance commercial security
Types of Mistakes
- Mutual Mistake [Different mistake, same matter of law]
- Unilateral Mistake [One party, other party knew]
- Common Mistake [Both parties, same mistake]
What are the four main elements for a mistake to qualifty under the CCLA 2017
1) It was indeed a mistake [and not one of the exceptions e.g expectations, interpretation, ignorance]
2) It resulted in an inequality of value exchange [not just value but also consideration to benefit counts]
3) No clause within the contract the makes bearing of full risk assumption [Hedley Berne Case]
4) The Mistake must of influenced the party to enter into the contract [Just being material is sufficient, not necerssarily decisive]
What are the main ways a court can grant relief for mistakes?
- Contract level: affirm, vary, cancel
- Transfer of property
- Order of performance
- Retrification [Reflect true intentions]
- Non est factum [this is not my act]
What are the three main scenarios where you can cancel contracts?
- Actual or anticipatory Breach of an essential term or with substantial effect [10-15%][objective test or value]
- Repudiation or partial repudiation
- Misrepresentation
What are the two main types of breachs?
Actual or anticipatory breach [term-specific]
