Week 2 Flashcards
What is an obligation ?
The relationship of corresponding rights and duties
What is a unilateral obligation?
A promise.
A promise has a creditor (with a right ) and a debtor (duty)
What is a Bilateral obligation?
Contract for services
A ( Right to receive performance and duty to pay)
B ( Right to payment and duty to perform)
In order to form a contract what conditions must be met?
Parties must have capacity
Rules on constitution must be complied with
What Acts regulate capacity ?
The age of legal capacity Act 1991 concludes ago of capacity at > 16
Adults with incapacity Act 2000
X v BBC (2005) CSOH 80
What happens if a contract is purported ?
Void ab inito - void from beginning
What happens if benefit is passed under a void agreement ?
It can be recovered through unjustififed enrichment
How can terms be applied ?
Can be applied through law ( Sale of Goods Act 1979)
Can be applied through facts
What is case to reference in terms of unjustified enrichment
Morgan Guaranty Trust Co of New York v Lothian RC 1995 SC 151
What happens if bilateral error occurs
contract is void
What happens if unilateral error occurs
No effect until it is induced by other party
What type of error will support a challenge to contract
Uninduced unilateral
What kinds of obligations outlast the contract
Performance waver and prescription
What are two types of breach of contract
Material and mutuality
