All On Contract Flashcards
(214 cards)
1
Q
What is the definition of a contract?
A
A contract is defined as that which the law will enforce as affecting the legal rights and duties of the parties.
2
Q
What distinguishes contractual obligations from other legal obligations?
A
Contractual obligations are based on the agreement of the contractual parties.
3
Q
What are the key points in defining a contract?
A
- It is an agreement/promise
- Agreement between two or more parties
- Creates rights and obligations
4
Q
What is the Subjective Theory of Contract?
A
It suggests that a contract is an agreement in which the parties have a subjective meeting of minds.
5
Q
What does the Objective Theory of Contract state?
A
An agreement is legally binding if, in the opinion of someone not party to the contract, an offer has been made and accepted.
6
Q
What is a Formal Contract?
A
A Formal Contract is made by deed and must be in writing or typed, deriving its validity from its form.
7
Q
What characterizes a Simple Contract?
A
A Simple Contract refers to all other contracts apart from formal contracts and derives its validity from consideration.
8
Q
What defines an Express Contract?
A
An Express Contract has terms that are clearly stated.
9
Q
What is an Implied Contract?
A
An Implied Contract has terms that are not expressly stated and are inferred from the conduct of the parties.
10
Q
What is the nature of an Escrow Contract?
A
An Escrow Contract describes the terms and conditions applicable to the parties involved, effective when certain conditions are fulfilled.
11
Q
What is the difference between Bilateral and Unilateral Contracts?
A
- Bilateral: Exchange of promises
- Unilateral: One party makes promises, the other acts
12
Q
What is an Executed Contract?
A
An Executed Contract is a legally binding agreement where all parties have performed their obligations.
13
Q
What is an Executory Contract?
A
An Executory Contract is one where one or both parties still have outstanding obligations to fulfill.
14
Q
What is a Void Contract?
A
A Void Contract does not exist before the law and is fundamentally unenforceable.
15
Q
What is a Voidable Contract?
A
A Voidable Contract is recognized by law but contains a defect allowing one party to choose to enforce or void it.
16
Q
What is an Electronic Contract?
A
An Electronic Contract is a legally binding agreement created, signed, and stored electronically.
17
Q
What are some reasons for creating contracts?
A
- Serve as a record of commitment
- Prevent conflicts and mitigate risks
- Provide remedies for breaches
- Ensure enforceability of private promises
18
Q
What are the ingredients necessary for a valid contract?
A
- Offer
- Acceptance
- Consideration
- Intention to create legal relations
19
Q
What is an Offer in contract law?
A
An Offer is an expression of willingness to contract on specified terms, made with the intention to become binding upon acceptance.
20
Q
What are the key components of an Offer?
A
- Involves two parties (offeror and offeree)
- Must be definite and precise
- Must be communicated to be effective
- May be express or implied
21
Q
True or False: An advertisement is always considered an offer.
A
False
22
Q
What is the difference between an Offer and an Invitation to Treat?
A
An Offer is a definite promise to be bound, while an Invitation to Treat is an indication of willingness to negotiate.
23
Q
What is the legal standing of bids in an auction?
A
A bid is considered an offer and the auctioneer’s agreement is acceptance.
24
Q
What is the nature of shop displays in relation to offers?
A
Shop displays are not offers but invitations to customers to make an offer to buy.
25
What is the legal status of shop displays of price-marked goods?
An invitation to treat, not an offer
## Footnote
This means customers make an offer to buy when they present goods at the cash register.
26
In the context of retail, what constitutes an offer?
The act of a customer presenting selected items at the cash register for payment
## Footnote
This was established in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd.
27
What was the ruling in Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd?
The display of goods was ruled as an invitation to treat, not an offer
## Footnote
This allowed sales to proceed without pharmacist supervision.
28
Does a company's public offer to purchase shares legally constitute an offer?
No, it is not considered a legal offer
## Footnote
Refer to the Harris case (1872) L.R 7 Ch. App.587.
29
What is a rights issue in the context of shares?
An offer made to existing shareholders to buy new shares
## Footnote
This was illustrated in Berliet Nig. Ltd v Francis.
30
How do rail-carriers make offers according to legal cases?
By issuing advertisements stating the times and conditions of service
## Footnote
This principle was seen in Denton v GN Railway.
31
What must occur for a passenger to accept an offer from a road carrier?
Purchasing a ticket or getting on the bus
## Footnote
This was established in Wilkie v London Passenger Transport Board.
32
What is the legal status of a statement inviting tenders?
It is not an offer; the offer arises from the acceptance of the tender
## Footnote
This was clarified in Spencer v Harding.
33
What are the ways in which offers can be terminated?
Rejection, death, counter-offer, conditional offer, lapse of time, revocation
## Footnote
Each method has specific legal implications as outlined in various cases.
34
What happens to an offer once it has been rejected?
It automatically comes to an end
## Footnote
This principle is illustrated by St Machiavelli College v Ogunsan.
35
What occurs if the offeree knows of the offerror's death?
The offer lapses and cannot be accepted
## Footnote
As seen in Bradbury v Morgan.
36
What constitutes a counter-offer?
Introducing new terms that destroy the original offer
## Footnote
This was established in Hyde v Wrench.
37
When is a conditional offer valid?
Only when the specified conditions are fulfilled
## Footnote
This was determined in Atiba Iyalamu Savings Ltd v Subaru.
38
What is the postal rule regarding acceptance?
Acceptance is effective when posted, not when received
## Footnote
This rule can lead to complications in contract formation.
39
What is required for a valid acceptance?
Unconditional assent to the terms of an offer
## Footnote
Acceptance can be written, oral, or inferred by conduct.
40
What is the mirror image rule?
Acceptance must exactly match the terms of the offer
## Footnote
This ensures clarity in contract formation.
41
In what situation can acceptance be inferred from conduct?
When an offer to supply goods is accepted by using them
## Footnote
This was established in Weatherby v Banham.
42
What is considered an invalid type of acceptance?
Counter-offer, conditional acceptance, cross offers, acceptance in ignorance of offer, unauthorized acceptance
## Footnote
Each type fails to meet the legal criteria for effective acceptance.
43
What is the status of consideration in contract law?
Something of value must be exchanged between parties
## Footnote
Consideration can be a detriment to the promisee or a benefit to the promisor.
44
What is past consideration?
Consideration given before the promise was made
## Footnote
It is generally not valid unless specific conditions are met.
45
What are the requirements for past consideration to be valid?
Requested by the promisor, understood as a promise, legally recoverable
## Footnote
These criteria ensure past acts can support new promises.
46
Can performance of an existing duty constitute valid consideration?
Generally no, unless it exceeds the existing duty
## Footnote
This principle was established in cases like Stilk v Myrick.
47
What is the legal principle regarding the enforceability of a promise made to a witness already under a legal duty?
The promise cannot be enforced as the individual is already under a legal duty to attend court due to a subpoena.
48
In Stilk v Myrick, why did the action to enforce the captain's promise fail?
The performance of the act was part of an existing contractual duty.
49
What is the legal stance on contractual duties owed to a third party in relation to consideration?
Performance of that duty is sufficient consideration for a new promise.
50
What principle was affirmed in Pinnel's case regarding part payment of a debt?
Payment of a lesser sum does not discharge the whole debt.
51
What is promissory estoppel?
A doctrine that prevents a party from going back on a promise once the other party has relied on it.
52
In which case was the principle of promissory estoppel established?
Hughes v Metropolitan Railway.
53
What are the two types of agreements regarding the intention to enter legal relations?
* Domestic and social agreements
* Commercial agreements
54
What is the presumption regarding contractual intention in domestic and social agreements?
There is a presumption that contractual intention is absent.
55
In which case was it held that there was no contractual intention in a promise between spouses?
Balfour v Balfour.
56
What is the significance of performance in domestic or social engagements?
Performance involving great sacrifices may rebut the presumption against contractual intention.
57
What is the presumption regarding contractual intention in commercial agreements?
The law presumes the presence of contractual intention.
58
What are the exceptions to the presumption of contractual intention in commercial agreements?
* A mere puff
* An express clause excluding intention
59
What is the difference between a term and a mere representation in a contract?
A breach of a term can warrant damages or repudiation, while a mere representation does not.
60
What is a collateral contract?
A contract that provides a remedy when a representee enters into a contract based on a statement or promise made by the representor.
61
What are the conditions for a collateral contract as per Shanklin Pier Ltd v Deter Products Ltd?
* A promise or assertion by A
* Acquisition of goods by B on reliance on that promise
62
What are the three types of conditions in contracts as identified by James LJ?
* Condition precedent
* Condition subsequent
* Condition inherent
63
What is the distinction between condition and warranty?
Conditions are essential to the contract, while warranties are secondary.
64
What are innominate or intermediate terms?
Terms that can lead to damages or repudiation depending on the effects of the breach.
65
What is meant by fundamental terms in a contract?
Terms that underlie the contract, where failure to comply equates to non-performance.
66
What are implied terms in contracts?
Terms assumed to exist to give the contract business efficacy.
67
What are the types of implied terms?
* Terms implied by customs or trade
* Terms implied by statute
* Terms implied by courts
68
What does S12(1) of the Sales of Goods Act imply regarding the seller's title?
The seller must have the right to sell the goods.
69
What is the implied condition under S13 of the Sales of Goods Act for goods sold by description?
The goods must correspond with the description.
70
What is the implication of S14 regarding the fitness of purpose for goods?
Goods must be reasonably fit for a particular purpose if the buyer relies on the seller's skill or judgment.
71
What does 'merchantable quality' mean under S14(2)?
Goods must be fit for the purpose for which they are commonly bought.
72
What are the implied conditions in a sale by sample as per S15?
* Bulk must correspond with the sample
* Buyer must have a reasonable opportunity to compare
* Goods must be free from defects that are not apparent
73
What happens in cases of breach of implied terms under the Sales of Goods Act?
Breaches of conditions are generally treated as breaches of warranties.
74
What occurs when a buyer accepts goods under a non-severable contract?
The breach of any condition by the seller is treated as a breach of warranty, not grounds for rejecting the goods.
## Footnote
This applies to most contracts for sale of goods.
75
What are the three situations that constitute acceptance of goods by the buyer?
* The buyer communicates acceptance to the seller
* The buyer acts inconsistently with the seller's ownership
* The buyer retains the goods for a reasonable time after delivery
## Footnote
Acceptance may occur before the seller discovers defects.
76
When does property in specific goods usually pass to the buyer?
When the contract is made.
## Footnote
This is significant in determining the rights and obligations of the parties.
77
What is the purpose of implying terms in contracts according to courts?
To give the contract business efficacy.
## Footnote
Courts can only imply terms within certain guidelines.
78
What are the types of terms that may be implied by courts?
* Terms that parties had in mind but did not express
* Terms that parties would have probably expressed if the issue was raised
* Terms implied by the court for fairness or policy reasons
## Footnote
This was established in Shir law v Southern Foundaries Ltd.
79
How does the National Child Welfare Policy of 1989 define a child?
As anyone who is 12 years or younger.
80
What age is considered a child in Criminal Law?
Anyone below 14 years.
81
What is the age of majority in Britain as of now?
18 years.
82
What types of contracts involving infants are expressly declared void?
* Contract of loan
* Contracts for goods other than necessaries
* Account stated
## Footnote
These contracts are void under the Infants Relief Act of 1874.
83
What are necessaries in the context of contracts with infants?
Goods suitable to the condition in life of an infant and to their actual requirements at the time of sale and delivery.
## Footnote
The onus of proof lies on the party seeking to enforce the contract.
84
What is a beneficial contract of service?
Contracts such as apprenticeship or employment that are substantially for the benefit of the infant.
## Footnote
Courts will weigh the terms to determine overall benefit.
85
What special rules apply to contracts involving illiterates?
The writer of any document must comply with specific requirements to protect the illiterate.
## Footnote
These include reading and explaining the document in an understood language.
86
What defines an illiterate according to the strict definition approach?
A person ignorant of letters or who cannot read and write in any language.
87
What is the general principle regarding signed documents and exclusion clauses?
The party signing is bound by the exclusion clause unless there are vitiating elements.
## Footnote
This principle is illustrated in the case of L’estrange v. Graucob.
88
What is the difference between an exclusion clause and a limitation clause?
* Exclusion clause: exempts a party from liability for a breach
* Limitation clause: limits the liability of the guilty party
## Footnote
Both are commonly found in standard form contracts.
89
What is the rule for unsigned documents regarding exclusion clauses?
The party relying on the clause must show reasonable efforts to notify the other party of the clause.
## Footnote
Failure to do so may prevent reliance on the clause.
90
What must be proven for an exemption clause to be binding in the case of prior dealings?
There must have been a course of previous dealings between the parties.
## Footnote
This is established in cases like Spurling v. Bradshaw.
91
What does the principle of strict interpretation imply in contract law?
Ambiguities in contract terms will be interpreted against the drafter.
## Footnote
This principle is known as 'verba chartarum fortius accipiuntur contra proferentem'.
92
What type of agreement was made between the claimants and defendants regarding Singer cars?
The claimants would be sole dealers of the defendant’s cars for a designated area and purchase a specified number of cars
## Footnote
The agreement specifically involved new Singer cars.
93
What did the warranty clause in the contract stipulate?
The defendant had an obligation to repair or replace any fault in the car within twelve months of delivery if due to materials or workmanship
## Footnote
This warranty applied specifically to new Singer cars.
94
What was the issue with the car delivered to the claimants?
The car delivered was not new and had run significant mileage
## Footnote
The claimants attempted to reject the car upon discovering this.
95
What was the court's ruling regarding the 'new Singer car' term?
The court held that 'new Singer car' was an express term, not an implied one, and the defendants breached the contract
## Footnote
The exemption clause could not be relied upon.
96
In negligence cases, when can a party rely on an exclusion clause?
A party cannot rely on an exclusion clause unless it is expressly defined or provided for
## Footnote
This was established in Canada Steamship Lines Ltd v. The King.
97
What is the doctrine of fundamental breach?
It refers to a breach that goes to the root of a contract, failing to fulfill basic obligations and deterring the other party's substantial benefit
## Footnote
It indicates a serious breach that undermines the contract's purpose.
98
What is the rule of law school's position on fundamental breach?
No exclusion clause can protect a party that has committed a fundamental breach
## Footnote
This principle is illustrated by Suisse Atlantique’s case.
99
How does the rule construction school view fundamental breach?
It considers whether a defaulting party can rely on an exclusion clause as a question of construction
## Footnote
This was first adopted in Photo Production Ltd v. Securicor.
100
What is the essence of privity of contract?
Only the parties to the contract may enforce it against each other, even if it benefits a third party
## Footnote
This principle was affirmed in Dunlop Pneumatic Tyre Co. Ltd v. Selfridge & Co. Ltd.
101
What case exemplified the evolution of the doctrine of privity?
Duton v Poole, where a brother successfully enforced a promise made to their father
## Footnote
The court recognized that the promise might extend to the children.
102
What are exceptions to the doctrine of privity of contract?
Exceptions include:
* Law of Agency
* Covenants running with the land
* Sale of Family Land in Customary Law
* Collateral contracts
* Interfering with contractual rights
103
In what case was the exception of agency recognized?
Golden Construction Company Ltd v. State Co.
## Footnote
The court held that an agent can bind the principal in relation to a third party.
104
What principle was established in Tulk v Moxhay regarding covenants?
A party aware of a restrictive covenant can be subject to an injunction
## Footnote
This applies particularly to land contracts.
105
What does the sale of family land in customary law allow family members to do?
Challenge conveyances made without their consent
## Footnote
This principle was established in cases like Lewis v Bankole.
106
What is a collateral contract?
A contract that accompanies the main contract and involves a third party
## Footnote
Example: Shanklin Pier v Detel, where a promise about paint durability was enforceable.
107
What principle was established in Lumley v Gye regarding contractual rights?
Inducing a breach of contract is a recognized tort in common law
## Footnote
This principle extends to chattels as seen in British Motor Trade Association v Salvador.
108
What is the definition of a contract?
A contract is defined as that which the law will enforce as affecting the legal rights and duties of the parties.
109
What distinguishes contractual obligations from other legal obligations?
Contractual obligations are based on the agreement of the contractual parties.
110
What are the key points in defining a contract?
* It is an agreement/promise
* Agreement between two or more parties
* Creates rights and obligations
111
What is the Subjective Theory of Contract?
It suggests that a contract is an agreement in which the parties have a subjective meeting of minds.
112
What does the Objective Theory of Contract state?
An agreement is legally binding if, in the opinion of someone not party to the contract, an offer has been made and accepted.
113
What is a Formal Contract?
A Formal Contract is made by deed and must be in writing or typed, deriving its validity from its form.
114
What characterizes a Simple Contract?
A Simple Contract refers to all other contracts apart from formal contracts and derives its validity from consideration.
115
What defines an Express Contract?
An Express Contract has terms that are clearly stated.
116
What is an Implied Contract?
An Implied Contract has terms that are not expressly stated and are inferred from the conduct of the parties.
117
What is the nature of an Escrow Contract?
An Escrow Contract describes the terms and conditions applicable to the parties involved, effective when certain conditions are fulfilled.
118
What is the difference between Bilateral and Unilateral Contracts?
* Bilateral: Exchange of promises
* Unilateral: One party makes promises, the other acts
119
What is an Executed Contract?
An Executed Contract is a legally binding agreement where all parties have performed their obligations.
120
What is an Executory Contract?
An Executory Contract is one where one or both parties still have outstanding obligations to fulfill.
121
What is a Void Contract?
A Void Contract does not exist before the law and is fundamentally unenforceable.
122
What is a Voidable Contract?
A Voidable Contract is recognized by law but contains a defect allowing one party to choose to enforce or void it.
123
What is an Electronic Contract?
An Electronic Contract is a legally binding agreement created, signed, and stored electronically.
124
What are some reasons for creating contracts?
* Serve as a record of commitment
* Prevent conflicts and mitigate risks
* Provide remedies for breaches
* Ensure enforceability of private promises
125
What are the ingredients necessary for a valid contract?
* Offer
* Acceptance
* Consideration
* Intention to create legal relations
126
What is an Offer in contract law?
An Offer is an expression of willingness to contract on specified terms, made with the intention to become binding upon acceptance.
127
What are the key components of an Offer?
* Involves two parties (offeror and offeree)
* Must be definite and precise
* Must be communicated to be effective
* May be express or implied
128
True or False: An advertisement is always considered an offer.
False
129
What is the difference between an Offer and an Invitation to Treat?
An Offer is a definite promise to be bound, while an Invitation to Treat is an indication of willingness to negotiate.
130
What is the legal standing of bids in an auction?
A bid is considered an offer and the auctioneer's agreement is acceptance.
131
What is the nature of shop displays in relation to offers?
Shop displays are not offers but invitations to customers to make an offer to buy.
132
What is the legal status of shop displays of price-marked goods?
An invitation to treat, not an offer
## Footnote
This means customers make an offer to buy when they present goods at the cash register.
133
In the context of retail, what constitutes an offer?
The act of a customer presenting selected items at the cash register for payment
## Footnote
This was established in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd.
134
What was the ruling in Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd?
The display of goods was ruled as an invitation to treat, not an offer
## Footnote
This allowed sales to proceed without pharmacist supervision.
135
Does a company's public offer to purchase shares legally constitute an offer?
No, it is not considered a legal offer
## Footnote
Refer to the Harris case (1872) L.R 7 Ch. App.587.
136
What is a rights issue in the context of shares?
An offer made to existing shareholders to buy new shares
## Footnote
This was illustrated in Berliet Nig. Ltd v Francis.
137
How do rail-carriers make offers according to legal cases?
By issuing advertisements stating the times and conditions of service
## Footnote
This principle was seen in Denton v GN Railway.
138
What must occur for a passenger to accept an offer from a road carrier?
Purchasing a ticket or getting on the bus
## Footnote
This was established in Wilkie v London Passenger Transport Board.
139
What is the legal status of a statement inviting tenders?
It is not an offer; the offer arises from the acceptance of the tender
## Footnote
This was clarified in Spencer v Harding.
140
What are the ways in which offers can be terminated?
Rejection, death, counter-offer, conditional offer, lapse of time, revocation
## Footnote
Each method has specific legal implications as outlined in various cases.
141
What happens to an offer once it has been rejected?
It automatically comes to an end
## Footnote
This principle is illustrated by St Machiavelli College v Ogunsan.
142
What occurs if the offeree knows of the offerror's death?
The offer lapses and cannot be accepted
## Footnote
As seen in Bradbury v Morgan.
143
What constitutes a counter-offer?
Introducing new terms that destroy the original offer
## Footnote
This was established in Hyde v Wrench.
144
When is a conditional offer valid?
Only when the specified conditions are fulfilled
## Footnote
This was determined in Atiba Iyalamu Savings Ltd v Subaru.
145
What is the postal rule regarding acceptance?
Acceptance is effective when posted, not when received
## Footnote
This rule can lead to complications in contract formation.
146
What is required for a valid acceptance?
Unconditional assent to the terms of an offer
## Footnote
Acceptance can be written, oral, or inferred by conduct.
147
What is the mirror image rule?
Acceptance must exactly match the terms of the offer
## Footnote
This ensures clarity in contract formation.
148
In what situation can acceptance be inferred from conduct?
When an offer to supply goods is accepted by using them
## Footnote
This was established in Weatherby v Banham.
149
What is considered an invalid type of acceptance?
Counter-offer, conditional acceptance, cross offers, acceptance in ignorance of offer, unauthorized acceptance
## Footnote
Each type fails to meet the legal criteria for effective acceptance.
150
What is the status of consideration in contract law?
Something of value must be exchanged between parties
## Footnote
Consideration can be a detriment to the promisee or a benefit to the promisor.
151
What is past consideration?
Consideration given before the promise was made
## Footnote
It is generally not valid unless specific conditions are met.
152
What are the requirements for past consideration to be valid?
Requested by the promisor, understood as a promise, legally recoverable
## Footnote
These criteria ensure past acts can support new promises.
153
Can performance of an existing duty constitute valid consideration?
Generally no, unless it exceeds the existing duty
## Footnote
This principle was established in cases like Stilk v Myrick.
154
What is the legal principle regarding the enforceability of a promise made to a witness already under a legal duty?
The promise cannot be enforced as the individual is already under a legal duty to attend court due to a subpoena.
155
In Stilk v Myrick, why did the action to enforce the captain's promise fail?
The performance of the act was part of an existing contractual duty.
156
What is the legal stance on contractual duties owed to a third party in relation to consideration?
Performance of that duty is sufficient consideration for a new promise.
157
What principle was affirmed in Pinnel's case regarding part payment of a debt?
Payment of a lesser sum does not discharge the whole debt.
158
What is promissory estoppel?
A doctrine that prevents a party from going back on a promise once the other party has relied on it.
159
In which case was the principle of promissory estoppel established?
Hughes v Metropolitan Railway.
160
What are the two types of agreements regarding the intention to enter legal relations?
* Domestic and social agreements
* Commercial agreements
161
What is the presumption regarding contractual intention in domestic and social agreements?
There is a presumption that contractual intention is absent.
162
In which case was it held that there was no contractual intention in a promise between spouses?
Balfour v Balfour.
163
What is the significance of performance in domestic or social engagements?
Performance involving great sacrifices may rebut the presumption against contractual intention.
164
What is the presumption regarding contractual intention in commercial agreements?
The law presumes the presence of contractual intention.
165
What are the exceptions to the presumption of contractual intention in commercial agreements?
* A mere puff
* An express clause excluding intention
166
What is the difference between a term and a mere representation in a contract?
A breach of a term can warrant damages or repudiation, while a mere representation does not.
167
What is a collateral contract?
A contract that provides a remedy when a representee enters into a contract based on a statement or promise made by the representor.
168
What are the conditions for a collateral contract as per Shanklin Pier Ltd v Deter Products Ltd?
* A promise or assertion by A
* Acquisition of goods by B on reliance on that promise
169
What are the three types of conditions in contracts as identified by James LJ?
* Condition precedent
* Condition subsequent
* Condition inherent
170
What is the distinction between condition and warranty?
Conditions are essential to the contract, while warranties are secondary.
171
What are innominate or intermediate terms?
Terms that can lead to damages or repudiation depending on the effects of the breach.
172
What is meant by fundamental terms in a contract?
Terms that underlie the contract, where failure to comply equates to non-performance.
173
What are implied terms in contracts?
Terms assumed to exist to give the contract business efficacy.
174
What are the types of implied terms?
* Terms implied by customs or trade
* Terms implied by statute
* Terms implied by courts
175
What does S12(1) of the Sales of Goods Act imply regarding the seller's title?
The seller must have the right to sell the goods.
176
What is the implied condition under S13 of the Sales of Goods Act for goods sold by description?
The goods must correspond with the description.
177
What is the implication of S14 regarding the fitness of purpose for goods?
Goods must be reasonably fit for a particular purpose if the buyer relies on the seller's skill or judgment.
178
What does 'merchantable quality' mean under S14(2)?
Goods must be fit for the purpose for which they are commonly bought.
179
What are the implied conditions in a sale by sample as per S15?
* Bulk must correspond with the sample
* Buyer must have a reasonable opportunity to compare
* Goods must be free from defects that are not apparent
180
What happens in cases of breach of implied terms under the Sales of Goods Act?
Breaches of conditions are generally treated as breaches of warranties.
181
What occurs when a buyer accepts goods under a non-severable contract?
The breach of any condition by the seller is treated as a breach of warranty, not grounds for rejecting the goods.
## Footnote
This applies to most contracts for sale of goods.
182
What are the three situations that constitute acceptance of goods by the buyer?
* The buyer communicates acceptance to the seller
* The buyer acts inconsistently with the seller's ownership
* The buyer retains the goods for a reasonable time after delivery
## Footnote
Acceptance may occur before the seller discovers defects.
183
When does property in specific goods usually pass to the buyer?
When the contract is made.
## Footnote
This is significant in determining the rights and obligations of the parties.
184
What is the purpose of implying terms in contracts according to courts?
To give the contract business efficacy.
## Footnote
Courts can only imply terms within certain guidelines.
185
What are the types of terms that may be implied by courts?
* Terms that parties had in mind but did not express
* Terms that parties would have probably expressed if the issue was raised
* Terms implied by the court for fairness or policy reasons
## Footnote
This was established in Shir law v Southern Foundaries Ltd.
186
How does the National Child Welfare Policy of 1989 define a child?
As anyone who is 12 years or younger.
187
What age is considered a child in Criminal Law?
Anyone below 14 years.
188
What is the age of majority in Britain as of now?
18 years.
189
What types of contracts involving infants are expressly declared void?
* Contract of loan
* Contracts for goods other than necessaries
* Account stated
## Footnote
These contracts are void under the Infants Relief Act of 1874.
190
What are necessaries in the context of contracts with infants?
Goods suitable to the condition in life of an infant and to their actual requirements at the time of sale and delivery.
## Footnote
The onus of proof lies on the party seeking to enforce the contract.
191
What is a beneficial contract of service?
Contracts such as apprenticeship or employment that are substantially for the benefit of the infant.
## Footnote
Courts will weigh the terms to determine overall benefit.
192
What special rules apply to contracts involving illiterates?
The writer of any document must comply with specific requirements to protect the illiterate.
## Footnote
These include reading and explaining the document in an understood language.
193
What defines an illiterate according to the strict definition approach?
A person ignorant of letters or who cannot read and write in any language.
194
What is the general principle regarding signed documents and exclusion clauses?
The party signing is bound by the exclusion clause unless there are vitiating elements.
## Footnote
This principle is illustrated in the case of L’estrange v. Graucob.
195
What is the difference between an exclusion clause and a limitation clause?
* Exclusion clause: exempts a party from liability for a breach
* Limitation clause: limits the liability of the guilty party
## Footnote
Both are commonly found in standard form contracts.
196
What is the rule for unsigned documents regarding exclusion clauses?
The party relying on the clause must show reasonable efforts to notify the other party of the clause.
## Footnote
Failure to do so may prevent reliance on the clause.
197
What must be proven for an exemption clause to be binding in the case of prior dealings?
There must have been a course of previous dealings between the parties.
## Footnote
This is established in cases like Spurling v. Bradshaw.
198
What does the principle of strict interpretation imply in contract law?
Ambiguities in contract terms will be interpreted against the drafter.
## Footnote
This principle is known as 'verba chartarum fortius accipiuntur contra proferentem'.
199
What type of agreement was made between the claimants and defendants regarding Singer cars?
The claimants would be sole dealers of the defendant’s cars for a designated area and purchase a specified number of cars
## Footnote
The agreement specifically involved new Singer cars.
200
What did the warranty clause in the contract stipulate?
The defendant had an obligation to repair or replace any fault in the car within twelve months of delivery if due to materials or workmanship
## Footnote
This warranty applied specifically to new Singer cars.
201
What was the issue with the car delivered to the claimants?
The car delivered was not new and had run significant mileage
## Footnote
The claimants attempted to reject the car upon discovering this.
202
What was the court's ruling regarding the 'new Singer car' term?
The court held that 'new Singer car' was an express term, not an implied one, and the defendants breached the contract
## Footnote
The exemption clause could not be relied upon.
203
In negligence cases, when can a party rely on an exclusion clause?
A party cannot rely on an exclusion clause unless it is expressly defined or provided for
## Footnote
This was established in Canada Steamship Lines Ltd v. The King.
204
What is the doctrine of fundamental breach?
It refers to a breach that goes to the root of a contract, failing to fulfill basic obligations and deterring the other party's substantial benefit
## Footnote
It indicates a serious breach that undermines the contract's purpose.
205
What is the rule of law school's position on fundamental breach?
No exclusion clause can protect a party that has committed a fundamental breach
## Footnote
This principle is illustrated by Suisse Atlantique’s case.
206
How does the rule construction school view fundamental breach?
It considers whether a defaulting party can rely on an exclusion clause as a question of construction
## Footnote
This was first adopted in Photo Production Ltd v. Securicor.
207
What is the essence of privity of contract?
Only the parties to the contract may enforce it against each other, even if it benefits a third party
## Footnote
This principle was affirmed in Dunlop Pneumatic Tyre Co. Ltd v. Selfridge & Co. Ltd.
208
What case exemplified the evolution of the doctrine of privity?
Duton v Poole, where a brother successfully enforced a promise made to their father
## Footnote
The court recognized that the promise might extend to the children.
209
What are exceptions to the doctrine of privity of contract?
Exceptions include:
* Law of Agency
* Covenants running with the land
* Sale of Family Land in Customary Law
* Collateral contracts
* Interfering with contractual rights
210
In what case was the exception of agency recognized?
Golden Construction Company Ltd v. State Co.
## Footnote
The court held that an agent can bind the principal in relation to a third party.
211
What principle was established in Tulk v Moxhay regarding covenants?
A party aware of a restrictive covenant can be subject to an injunction
## Footnote
This applies particularly to land contracts.
212
What does the sale of family land in customary law allow family members to do?
Challenge conveyances made without their consent
## Footnote
This principle was established in cases like Lewis v Bankole.
213
What is a collateral contract?
A contract that accompanies the main contract and involves a third party
## Footnote
Example: Shanklin Pier v Detel, where a promise about paint durability was enforceable.
214
What principle was established in Lumley v Gye regarding contractual rights?
Inducing a breach of contract is a recognized tort in common law
## Footnote
This principle extends to chattels as seen in British Motor Trade Association v Salvador.
