Unit 1- Chapter 1: Contract Law

Question 0

What is An invitation to treat

Answer 0

Where a retailer invites a consumer to make an offer to buy a product which the retailer then can accept or reject

Question 1

What is a contract

Answer 1

A legally binding agreement between two or more people that is enforceable by law

Question 2

Example of invitation to treat

Answer 2

A retailer displaying a dress on sale for €100 does not have to sell that dress. They are merely inviting you to make an offer to buy the dress.

Question 5

What are the 8 essential elements of a contract

Answer 5

Offer
Acceptance
Consideration
Intention to contract
Capacity to contract
Consent to contract
Legality of form
Legality of purpose

Question 6

What is an offer

Answer 6

When one person asks another to enter deal with the.
All terms must be set out clearly and be valid.
NOT an invitation to treat

Question 7

Example of acceptance

Answer 7

When the supermarket scans your goods

Question 8

Example of offer

Answer 8

When you lace groceries on a conveyor belt.

NOT an invitation to treat eg a price tag.

Question 9

What is acceptance

Answer 9

When the other party agrees to the terms of the contract

Question 10

What is consideration

Answer 10

The payment that must be received by each party (quid pro quid).

The price agreed in a contract 
Essential element 
Does not have to be expressed in monetary terms 
Can be of lesser/more value 
E.g Trade house for lesser value car

Question 11

What is intention to contract

Answer 11

All parties entering contract must have a genuine wish to enter into and carry out the contract.
Both parties must mean for it to be a legally binding agreement.

Question 12

What is capacity to contact

Answer 12

Must have legal ability to enter into contract
Everyone can except:
Under 18s
Mentally incapacitated 
Diplomats
Directions who act ultra vires
Intoxication

Question 13

What is legality of form

Answer 13

Certain contracts must be drawn up in certain ways

Question 14

Examples of legality of form

Answer 14

Hire purchase contracts must be in writing

Question 15

What is Legality of purpose

Answer 15

Legally binding contracts can only be for legal transactions

Question 16

Example of legality of purpose

Answer 16

A contact over a robber will not be upheld in court

Question 17

Name 4 ways a contract is terminated

Answer 17

Performance
Agreement
Frustration
Breach

Question 18

What is performance

Answer 18

When both sides carry out their dirties as under the contract
E.g car transaction- money handed over car received

Question 19

What is agreement

Answer 19

If the parties involved voluntarily agree to end the contract
E.g. Most employment contracts allow either side to end the contract with one months Notice

Question 20

What is frustration

Answer 20

If an unforeseen event occurs such as a death or illness and the contract can’t carried out
Eg singer has contract with pub owner but dies beforehand

Question 21

Wat is a breach of contract

Answer 21

If one person breaks a condition of the contact- essential
Not if someone breaks a warranty- non essential
If a football player misses a training session that is breach of warranty but if he misses a match it’s a breach of condition.

Question 22

Name 3 Remedies for breach of contract

Answer 22

Damages
Specific performance
Rescind the contract

Question 23

What are “damages”

Answer 23

The person who broke the contract is ordered by court to pay financial compensation
Eg singer doesn’t show up for a concert she will have to pay for the money lost and inconvenience cause

Question 24

Example of intention to contract

Answer 24

Family members agreements are not contracts as they have no intention of being- promises.
Business agreements are always contracts - buying a car.

Question 25

Example of consideration

Answer 25

Supermarket receives your money and you receive your goods

Question 26

What us specific performance

Answer 26

The person has to carry out the terms if the contract as it was originally
Eg singer could be asked to perform on later date

Question 27

What is to “ rescind a contract”

Answer 27

The judge can restore the parties to exactly how they were before the contract was written which would happen in the case of frustration
Eg if the singer was ill