Unit 13 (contract law)

Question 1

what are the 4 elements that make a contract

Answer 1

Offer
Acceptance
consideration
intention to create legal relations

capacity (extra)

Question 2

what are the two different types of contacts.

Answer 2

Bilateral contract
unilateral contract

Question 3

define what a bilateral contract is

Answer 3

Bilateral is made between two individuals or companies
(remember bi = 2)

Question 4

what is a unilateral contract?

Answer 4

Is an offer to the world, there is no designated offeree.

Question 5

invitation to treat

Answer 5

An invitation to negotiate for a good or a service
“Make me an offer”
case - Carlill v carbolic smoke ball

Question 6

example of a case that uses invitation to treat

Answer 6

Fisher v Bell 1959

Question 7

summary of fisher v bell

Answer 7

Flick knife in a shop window, this implied that the shop owner was inviting people to make an offer, not ‘offering for sale’ as prohibited by the act.

Question 8

when does a contract come to an end?

Answer 8

a contract can come to an end through acceptance (when offer has been accepted), revocation (offeror revokes their offer), rejection, death and lapse of time (time limit for acceptance)

Question 9

what is acceptance

Answer 9

intention to be bound by the offer’s terms
case - Felthouse v bindley

Question 10

when would a contact not be accepted

Answer 10

would be accepted if the offeree does not hear a thing so it must be stated or written.

Question 11

what is a ‘postal rule’

Answer 11

An offer made by post/letter and is not effective till the offeree has received it.

Question 12

considertaion

Answer 12

mutual benefits + losses when moving from one party to another in a contract
(promises based on mutual agreement)

Question 13

Social agreement

Answer 13

between friends - the courts seem more prepared to find evidence of intentional

Question 14

domestic agreement

Answer 14

between family members - agreements between husband and wife do not generally give rise intention to create legal relations.

Question 15

case that includes a domestic agreement

Answer 15

Merritt v Merritt
Balfour V Balfour
(purely social)

Question 16

Balfour v Balfour

Answer 16

Husband stopped sending money to his wife as promised as he was away in Australia. Wife sued to enforce agreement but failed as the arrangement was purely social - did not carry intention to create legal relations.

Question 17

Merritt v Merritt

Answer 17

husband signed a contract to pay his wife £40 a month to pay off the mortgage. he failed to comply with the contract so wife sued him, because they were seperated it made this deal a business arrangement and not a social one.

Question 18

Commercial agreements

Answer 18

the parties may state expressly that the contract is binding in honour only- no binding contract intended

Question 19

express terms

Answer 19

these are explicit in the contract, they are stated and both parties are overtly aware of them.

Question 20

Implied terms

Answer 20

not expressly stated, but almost taken for granted as obvious within the deal.

Question 21

Discharge of a contract

Answer 21

Agreement
performance
frustration
breach

Question 22

what is an agreement

Answer 22

ending of a contract before the natural end of the anticipated terms of a contract

Question 23

performance

Answer 23

terminated when both parties have fully performed their contractual obligations

Question 24

frustration (Rescission)

Answer 24

where there exists a change in circumstances which is not the fault of either of the parties

Question 25

breach

Answer 25

broken your obligations/promises
on the day
or anticipated

Question 26

implied v express terms

Answer 26

express- contract between you and the other party
implied - one that a court has implied into a contract because it has not been expressly included

Question 27

conditions

Answer 27

a term which is expressed or implied and goes to the foot of your contract

Question 28

warranties

Answer 28

if the other side is in breach
- terminate
-sue damages

Question 29

exclusion clause

Answer 29

when 1 party tries to exclude their liability (responsibility)

Question 30

Damages

Answer 30

what you’re entitled to
- compensation (money)

Question 31

remedies

Answer 31

the position you would have been if the contract had gone ahead

Question 32

specific performance

Answer 32

a declaration by the court compelling a party to perform its contractual obligations “no other good but the good i wanted

Question 33

what is an offer

Answer 33

a clear and full statement of wanting to enter a legally binding contract

Question 34

Privity of contract

Answer 34

only the party to the contract may sue to enforce it, but there is exceptions
third parties cannot enforce it
Tweedle v Atkinson

Question 35

reputed

Answer 35

backed away from the contract