WEEK 3 Flashcards
1
Q
What is a contract?
A
- Agreement between two or more persons that is legally binding
2
Q
Elements of a contract
A
1 – Agreement
2 – An intention to create legal relations
3 – Compliance with required formalities where applicable
4 - Consideration
5 – Capacity to contract
3
Q
Form of contract
A
- Simple contracts – contracts that can be made in any form
- Speciality contracts – contracts that have to be in a particular form to be legally enforceable by the courts
- Bilateral contract
- Unilateral contract
4
Q
Bilateral contract
A
- where one party promises a certain action in response to the other party’s action
- E.g. buying goods in a store, fixing someone’s car for an agreed price
5
Q
Unilateral contract
A
- one party makes a promise of an action if another party (or parties) executes an action, but no obligation to execute said action
- E.g. a reward for lost property, an insurance policy
6
Q
Termination by revocation
A
- The offer is withdrawn by the person making the offer
- An offer can be revoked at any time up until the offer is accepted, even if the offeror informs the offeree they will keep the offer open for a period of time
7
Q
Termination by rejection and counter offer
A
If a counter offer is made, this is regarded as a rejection of the original offer
8
Q
Termination by lapse of time
A
- If the offer has a time limit, it will expire at the end of that limit
- If no specified time limit, it will still expire after a reasonable time (could be weeks, months, years depending on nature of offer)
9
Q
Termination by death
A
- The deceased offeree is unable to accept an offer because they are dead
- If the offeror dies, then the offer terminates once the offeree knows of the death
- If the offeror dies and the offeree does not know of the death, could be legally uncertain, particularly if there is an element of part performance
10
Q
Acceptance
A
Acceptance of an offer is the unconditional acceptance to all the terms of an offer
11
Q
How can acceptance be made
A
-Acceptance can be made:
- Orally
- In writing
- Hammer fall at an auction
- Indicated by the conduct of the offeree
12
Q
Acceptance is Unconditional
A
