Week 6 - Certainty of Terms

Question 1

What may the courts ignore?

Answer 1

A term of a contract which is meaningless

Question 2

What may courts do to attempt to remove the uncertainty in the parties’ intentions?

Answer 2

Courts may look at particular customs in a trade/industry

Question 3

What can courts use if parties have dealt with each other before?

Answer 3

They can consider the previous dealings of the parties to ascertain any terms mentioned - fill in the gaps with previous agreements made

Question 4

What does it mean for parties to be in ‘agreement to agree’?

Answer 4

They were still in negotiations and didn’t fill things out - no specific around price and payment

Question 5

What happens if two parties have an agreement to agree, instead of an actual contract?

Answer 5

There is a breach in certainty, as there is not enough to understand how this contract was going to be fulfilled, and therefore there is no contract

Question 6

What are the five requirements for a functioning contract?

Answer 6

• offer
• acceptance
• consideration
• intention to be legally bound
• certainty