1. Introduction to Formation of Contracts

Question 1

What three elements are required for a contract?

Answer 1

1. Agreement (offer and acceptance)
2. Intention to be legally bound
3. Consideration

Question 2

What are three ways a simple contract can come into existence?

Answer 2

1. In writing
2. Orally
3. Through conduct of parties

Question 3

What are three examples of contracts which must be in writing?

Answer 3

1. Guarantees
2. Contracts for sale/disposition of an interest in land
3. Consumer credit agreements

Question 4

How are contracts in electronic form typically treated?

Answer 4

They will be considered properly executed as if they were in writing

Question 5

What is a deed?

Answer 5

A document which makes it clear on its face that it is a deed

Question 6

What are the two requirements for a deed?

Answer 6

1. Executed by the parties to it in the presence of a witness
2. Delivered

Question 7

In the context of a deed, what does delivered mean?

Answer 7

Any act indicating the parties’ intention to be bound

Question 8

What are two instances where a contract must be made via deed to be enforceable?

Answer 8

1. Promises where nothing is received/promised in return (avoids consideration issue)
2. Conveyance/transfers of land (the actual land itself; not to be confused with the contract to sell/dispose of an interest in land)

Question 9

What is the timing advantage in having a contract made by deed as opposed to a contract not made by deed?

Answer 9

12 years to bring a claim for breach, as opposed to 6