Chapter 2 Flashcards

Question

Express words or by conduct

Answer 1

Some act is required to show that an offer is being accepted

Answer 2

Brogden supplied coal to Met D agent sent a draft agreement to C for consideration and the parties applied the terms of the draft agreement to their dealings, but never signed a final version C later denied there was ever any agreement Decision : the conduct of the parties was only explicable in the assumption they both agreed to the terms of the draft

Answer 3

Facts : c write to his nephew offering to buy the nephews horse. Adding If I hear no more about him I consider the horse mine. Nephew died intending to accept the offer Decision: C had no right to the horse as the nephews silence couldn’t constitute acceptance

Answer 4

Offeror has impliedly or expressively waived the need for communication Eg rewards (Carlill)

Answer 5

Acceptance is valid from the moment letter is posted regardless of whether it had been received

Answer 6

Only applied when use of post is within reasonable contemplation between parties Letter must be addressed correctly Rule only applies to acceptance not revocation Acceptance ‘by notice in writing’ overrides rule Doenst apply to instananious ie email

Answer 7

Social and domestic : no intention to create legal obligations Commercial : intention to create a legally binding contract

Answer 8

The value that each party gives in the agreement

Answer 9

Executed Executory Past considerations

Answer 10

An act performed or expected In Return for a promise Takes place at point of agreement

Answer 11

A promise that is given for a promise: to do something in the future - after agreement

Answer 12

An act which has already been done when the promise is made Before date of agreement Not valid consideration

Answer 13

Under a will the testators children were entitled to mums house after her death. The wife of one of the kids made improvements to house before she died The children agreed to pay her ‘in consideration of her work’ but refused to do so when she died D: as the work had already been completed when the postings was made it falls under past consideration and there is no binding contact

Answer 14

Should be distinguished from past consideration - Where the promise is made before consideration is provided and both parties expect a payment to be made. Actual terms of payment may be provided after the event Eg barbers and taxi

Answer 15

When a contract is made by deed

Answer 16

Formal promise made between parties that states promise must be in writing and signed

Answer 17

- Conveyency: transfer of property - Leases which are over 3 years - Promises unsupported by consideration (donation to charity (no return value))

Answer 18

Must have some identifiable value to be capable of being realised as valid consideration

Answer 19

Doenst have to be of market value - doenst have to be of equals value as a bad bargain is still a contract

Answer 20

By his will C’s husband expressed the wish that his widow should have the use of his house drying her life After death the executors allowed her to do so. In return pay £1 per annum Later said the promise to let her stay wasn’t supported by consideration Decision: payment of nominal amount of £1 was sufficient

Answer 21

Performance of existing statutory duty - unless it can be shown that some extra service over the scope of the statutory duty Performance of an existing contracted duty owed to promissory is not consideration unless can be shown the promised is actually giving or doing something above the contractual obligation

Answer 22

Facts: D subcontracted C to do world for £20000. During work C ran into financial difficulties. D promised to play an extra £10300 to ensure work was completed. Later refused amount Decision: D’s arguments was that there was no consideration for the promise to pay £103000. Was decided that D didn’t have to engage someone else to complete the work or pay a penalty therefore was deemed consideration

Answer 23

Claimant to X to deliver cargo as X directed. Claimant to deliver it to Defendant. Defendant then made a contract with Claimant to unload it he cargo if Claimant Delivered it to Defendant (which he was already obliged to) Was held that Claimants obligation to X to deliver the cargo to Defendant was sufficient consideration for the Defendants promise

Answer 24

Part payment of Debt is insufficient Dobtained judgement against C, Jusgement debt bears interest from date of judgement. By a written agreement D agreed to receive payments in installments. No mention of interest. Once C had paid the amount D claimed interest. Which he was entitled too since there was no consideration given by c for the waiver of any part of her rights against him

Answer 25

Waiver binding if: Alternative consideration eg payments in goods or services in Lieu of cash Bargain between creditors 3rd party payments Early payment

Answer 26

All terms are incorporated but there may be evidentiary issues

Answer 27

All terms incorporated even if the parties have not read them

Answer 28

Such a term may be incorporated into the contract if it induces the party to enter the contract. If it is not part of the contract the claimant may have a claim for misrepresentation not for breach of contract

Answer 29

-special Knowledge of the subject by party making statement - how much time has passed between statement and making it contract - why statement wasn’t included - importance attached to statement

Answer 30

Not usually be admitted to add, vary it contradict written terms, unless it can be shown the document was not intended to comprise of all written terms

Answer 31

D contracted to take C’s cargo of oranges to LDN ‘by any route, directly or indirectly’ Ds agent gave verbal undertaking that the vessel would sail directly to LDN from Spain - but ship went via Antwerp so oranges arrived late Held that the verbal undertaking amounted to a warranty and was admissible as oral evidence to override written terms in the bill if lading

Answer 32

Additional terms may be implied by law Deed to form part of the contact even though not mentioned

Answer 33

By reference to custom proboder the custom is not inconsistent with the expressed terms of the contract By statute eg the sale of goods act which can override express terms of the contract (for for purpose, of reasonable quality) By courts - if courts concluded the parties must have intended the term to apply to make the contract effective

Answer 34

Owners of a wharf agreed that a ship should be moored alongside to unload its cargo. It was well known that the ship would ground on the mud when the tide went down - suffering damage Decision - implied term that the ground alongside was safe at low tide as both parties new the ship would rest on it

Answer 35

Tenant in a tower block with no formal tenancy agreement withheld his rent. Alleging the owner off the block had breached contract as the lifts were broke and stairs were dark Implied term that the owners would maintain these common parts of the building as this is necessary for the tenants to access the building

Answer 36

Only a person who is a party to a contract has enforceable rights and can be bound by a contract

Answer 37

Road traffic act (3rd party insurance) Agency arrangements Executives of a will (stand in for a dead person) Contracts (right of third parties) act 1999 provides a third party may enforce a term of the vibrancy provided - must be clearly identified in contract

Chapter 2 Flashcards

(64 cards)