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Legal Studies Unit 2 > Contract Law AOS 3 > Flashcards

Contract Law AOS 3 Flashcards

1
Q

Contract.

A

A legally binding agreement between two or more parties.

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2
Q

What must there be for a contract (in terms of parties)?

A
  • Offeror

- Offeree

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3
Q

What does a contract require (sum)?

A

Intention+Agreement+Consideration=Contract

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4
Q

What are the elements of a contract?

A
  • Offer
  • Acceptance
  • Consideration
  • Certainty of terms
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5
Q

What are all of the requirements of a contract?

A
  • Intention to create legal relations.
  • Offer.
  • Legality of contract.
  • Certainty of terms.
  • Validity of contract.
  • Capacity to contract.
  • Acceptance.
  • Consideration.
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6
Q

Offer.

A

Entry into an agreement and being bound by the agreement.

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7
Q

Invitation to treat.

A

An offer for someone to make an offer (Eg. Sticker price on a car).

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8
Q

An offer can be:

A
  • Written
  • Verbal
  • Physical
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9
Q

Termination of an offer can occur by:

A
  • Lapse of offer.
  • Revocation of offer.
  • Rejection of offer.
  • Death of offeror.
  • Non-occurrence of condition.
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10
Q

Acceptance.

A

Unconditional agreement to the same terms as the offer.

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11
Q

What must be included in acceptance of an offer?

A
  • Communication.
  • Both parties must be aware of the contract.
  • Unqualified.
  • Time limit (for conditions to be accepted).
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12
Q

Consideration.

A

Something given, done or suffered in return for the offer.

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13
Q

Rules of consideration:

A
  • Can be present or future;not past.
  • Must be of some value but need not be adequate.
  • Nature of consideration must be definite.
  • Must be able to carry out.
  • Must not be illegal or unlawful.
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14
Q

What types of contracts do minors have?

A
  1. Valid
  2. Voidable
  3. Void
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15
Q

Explain a valid contract.

A

Three types:

  1. Necessaries (For stuff for the minor to live).
  2. Beneficial contracts of service (Provide for employment or education).
  3. Cash transactions.
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16
Q

Explain voidable contract.

A

Contracts that are binding unless they are taken away or ratified.

17
Q

Explain void contract.

A

Contracts for repayment of money, or payments of goods or services.

18
Q

What must be present for the terms of a contract to be valid?

A

Consent from both parties.

However, caveat emptor (buyer beware) still applies.

19
Q

What would cause a contract to be void?

A
  • Mistake of law or fact.
  • Misrepresentation - A false statement of fact to induce a person to enter into a contract.
  • Duress - If someone is threatened into a contract.
  • Undue influence - When a person uses their influence over another to force them into a contract.
20
Q

Certainty of terms.

A

The terms must be clear so that both parties are clear about what they are agreeing upon.

21
Q

Legality of a contract.

A

The contract must not break any statute or common law.

22
Q

Terms.

A

Can be either express or implied;

  1. Express: Words in the actual contract which are legally binding.
  2. Implied: Terms not stated in the actual contract but that are assumed to exist.
23
Q

Defences.

A

If not all of the requirements of a contract are met then it is not a valid contract (Eg. Contract is illegal, no consent).

24
Q

Intention to create legal relations.

A

A principle of contract law, requiring the parties to intend to create obligation which are legally binding and enforceable.

25
Q

Commercial agreement.

A

An agreement made in the course of business that is intended to be legally binding.

26
Q

Domestic agreement.

A

An agreement made between family members or friends that is not intended to be legally binding unless the circumstances indicate otherwise.

27
Q

What factors could make a contract binding?

A
  • Capacity to contract (Minors for employment or necessities).
  • Consent.
  • Legality.
28
Q

Warranty.

A

A term of the contract that is not part of the main contract (Eg. You buy a ford car, warranty is that supplier will replace faulty parts within the first year).

29
Q

Defences to breach of contract include.

A
  • There was no valid contract.
  • You had not breached the contract.
  • Causation (Defendant’s actions did not cause loss).
  • Remoteness of damage (Financial loss may not be closely related to breach of contract - no damages paid).
30
Q

Remedies?

A

Damages

Injunction

31
Q

GO OVER CASES IN TEXTBOOK

A

t(-.-t)

Legal Studies Unit 2 (8 decks)

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