Week 5 Flashcards
Contracts
What is a contract
Agreement between 2 or more people that is legally binding and enforceable by law.
What is an initial part of a well designed contract?
Risk Assessment and risk management strategies.
2 sources of contract law
Common and civil
What is difference between a contract and an agreement
Agreement usually not legally binding
What is freedom of contract
Parties can agree to whatever they like
3 types of contracts
simple, formal and bilateral/unilateral
How is a simple contract different to a formal one?
Simple can be oral, written or a combination. Has consideration but not the same elements as formal.
What are the 7 elements of a contract?
- Intention
- Offer
- Capacity
- Certainty of Terms
- Consideration
- Acceptance
- Legal Purpose
What are the 2 types of terms and what is the difference?
Express and Implied Terms. Express are fundamental and party has discussed, included in contract. Implied are often not discussed but implied into contract.
