Flashcards in BPP Manual Chapter 1 Deck (15)
What are specialty contracts?
contracts made under seal. Most formal kind of contract.
How is a contract made (in the simplest sense)
where parties have reached an agreement, or are deemed to have reached an agreement, and the law recognises rights and obligations arising from the agreement.
What are the three fundamental elements in any simple contract?
agreement, intention to create legal relations and capacity, and consideration.
How can an agreement usually be identified?
by identifying a clear offer from the offerer that has been unconditionally accepted by the offeree.
What is a 'consideration'?
any advantage or benefit that moves from one party to another as a result of an agreement is known as a consideration.
Give three examples of how an agreement could be made
1. in writing
2. word of mouth
3. by inference from the conduct of the parties and the circumstances of the case
(or any combination of these)
What are the two main disputes in contract law?
1. whether agreement was reached at all
2. the extent of the agreement (ie the terms)
How do courts determine the intention of a party when entering into an agreement?
From the terms of the contract and, where necessary, from the conduct of the parties.
What is the courts measure for a party's intention?
What a reasonable man would believe a part's intentions were, having regard to all circumstances.
What is a unilateral contract?
where one party makes an offer or proposal in terms which call for an act to be performed by one or more other parties. Only one party assumes an obligation and the offer can be open to acceptance by an unlimited number of offerees.
How are contractual rights and obligations correlative?
If X is under an obligation to pay Y £100 then Y has a correlative right to receive £100
What is a 'breach of contract'?
where a party neglects or refuses to honour a contractual obligation.
What right does a breach of contract give to the other party?
a right of action. ie the right to pursue for a remedy in court.
What remedies can a court offer?
either damages or the equitable remedy of specific performance