Agreement Flashcards

Question

In this scenario, is the contract formed/ If so, when? Day 1 - A makes offer to B Day 2 morning - A posts letter revoking the offer Day 2 afternoon - B posts a letter accepting the offer Day 3 - B received revocation Day 4 - A received acceptance

Answer 1

Contract is formed on day 2 in the afternoon when B posted letter of acceptance. The postal rule only applies to letters of acceptance.

Answer 2

the acceptance is delayed or lost in the post.

Answer 3

that the acceptance takes place at the moment the acceptance is received by the offeror.

Answer 4

No - completion of act suffice.

Answer 5

Objective test - asking whether, in all the circumstances of the case, the parties have agreed all the terms they considered to be a precondition to creating legal relations.

Answer 6

Terms - too vague - uncertain - variety of different terms - too ambiguous - agreement incomplete or uncertain from the terms Can be enforced if the words could be given a reasonable meaning.

Answer 7

- money/price paid - something in return suffice

Answer 8

Where contracting parties make promises to each other to perform something in the future after the contract has been formed.

Answer 9

1- must not be past 2- must move from the promisee 3- need not be adequate 4- must be sufficient

Answer 10

1- no consideration on some past event/performance Exception: prior act/service provided by the promise at the promisor's request and it was known from the outset/the beginning that the payment would be made for that act/service 2-party who hasn't provided consideration may not bring an action to enforce a contract 3- the court will not assess the adequacy of the consideration, it will not interfere with the bargain freely reached by the contracting parties. 4- must have some value ‘in the eyes of the law’ - does not matter how small the value is as long as it is worth something. If a thing of value can be identified, then there will be sufficiency of consideration and the court will not enquire as to its adequacy.

Answer 11

1- The act must have been done at the promisor’s request. 2- The parties must have understood that the act was to be rewarded either by a payment or the conferment of some other benefit. (express or implied) 3- The payment, or conferment of other benefits, must have been legally enforceable had it been promised in advance.

Answer 12

GR: No Exceptions: 1- executory consideration 2- if the party agrees to exceed their existing obligation (ie. went beyond existing obligations)

Answer 13

Will constitute good consideration if there is a practical benefit/obviation of a disbenefit. Conditions: 1- A and B contracted for A to do some act in return for payment by B 2- before A completely performed, B has reason to doubt whether A will be able to do so 3- B promises A additional payment for A to complete on time 4- B receives a practical benefit or obviates a disbenefit 5- provided that B's promise not given in due to economic duress or fraud on part of A Promise will be legally binding. B must exceed their existing obligations. A must not demand extra money from B under undue pressure. Consideration in the form of 'practical benefit'.

Answer 14

Good consideration if that party accepts a lesser sum and release the remainder of their liability. Performance of an existing obligation in part will constitute good consideration if there is a practical benefit in excess of receiving prompt payment of a part of the arrears.

Answer 15

If, at the creditor’s request, some new element is introduced, then this will amount to good consideration, and the court will not enquire as to the value of the new element. Examples might be payment at a different place, or at a different time or by providing a different thing in place of money

Answer 16

If the officer went beyond his public duty. It was held that the duty of a police officer is the prevention of crime and they are not under a duty to provide information to a private individual. In doing so he went beyond his public duty and thus provided consideration for the offer of reward.

Answer 17

Promisee obtains a direct obligation which he can enforce. If there is a failure to meet its obligations, this party would face action from both parties.

Answer 18

1- shield, not sword 2- clear and unequivocal promise that strict legal rights will not be (fully) enforced 3- a change of position in reliance on the promise (reliance need not be detrimental, a mere change of position suffice) 4- inequitable to resile from the promise (detriment would incur in case of resignation from the promise) 5- rights are suspended (promisor can resume their full rights back after giving a reasonable notice OR once the estoppel expires)

Answer 19

A clear and unequivocal promise or representation that strict legal rights will not be fully enforced. The promise must be intended to affect legal relations and not simply amount to a gratuitous privilege given to the promise. A promise can be express or implied (for example by conduct).

Answer 20

Promissory estoppel, as an equitable doctrine, is based on principles of fairness and is discretionary. The courts, in exercising their discretion, undertake a balancing exercise to determine whether it would be inequitable to allow the promisor to go back on their promise.

Answer 21

OBJECTIVE =: would reasonable people regard the agreement, in those circumstances, as intended to be binding?

Answer 22

- in commercial agreement: ICLR presumed - in social/domestic agreements: presumed that there is no ICLR --> can be rebutted spouses in the process of separating --> rebutted if estranged relations in the family Negotiation of a contract create strong rebuttal for presumptions.

Answer 23

1- necessaries --> if contract is for the benefit of the child, the minor will pay a reasonable price. Must be suitable to the condition in life of the minor and to their actual requirements at time of sale or delivery. 2- for education, employment or an apprenticeship contracts --> minor is also bound by a contract of employment, apprenticeship or education but only if it is for their benefit.

Answer 24

1- unable to make a decision for himself relating to the matter 2- at the time contract is made And the contracting counter party knew/ought to know this!

Answer 25

1- understand the relevant info 2- retain relevant info 3- use relevant info Therefore, unable to communicate a valid decision.

Answer 26

Contract is VOIDABLE if the person purporting incapacity can establish that: 1- they did not understand what they were doing; and 2- that the other party knew that to be the case

Answer 27

NECESSARIES A person without capacity still remains liable to pay a reasonable price for ‘necessaries