Chapter 2 Flashcards
(26 cards)
Contract
A legally binding agreement that is enforceable by law
Element of a contract
Offer Agreement Intention Consideration Capacity Consent Legality of form Legality of purpose
Offer
Can be verbal, written or by conduct (customer hands money to shopkeeper)
Terminated if counter offer, rejection or revocation
Invitation to a Treat
Invitation to a customer to make an offer which can be accepted or rejected
Goods on display in a shop
Agreement
When an offer has been accepted
Oral, written or by conduct
Clear and complete
Intention
There must be willingness and knowledge on both parts that they are entering into a contract
Consideration
What one party gives to another
A sort of exchange
Capacity
Parties must have the legal ability to enter into a contract Exceptions: • Under 18 • Under the influence • Bankruptcy • Business if acting “ultra vires”
Consent
Contract must be made voluntarily
Not be entered into under duress (force)
Both parties must agree to what is in the contract
Legality of form
The manner in which the contract is drawn up
E.g, oral, written or by conduct
Certain contracts must be in writing
Legality of purpose
The contract must not break any laws
For legal transactions
Terminating of contract
Performance
Agreement
Frustration
Breach
Remedies for breach of contract
Rescind/abandon the contract
Damages - sue for compensation
Specific performance- Court will order original contract to be carried out
Sale of Goods and Supply of Services Act 1980
Rights is consumers and responsibility of retailers Goods must be of Reasonable quality Fit for Purpose As described Conform to sample
When services are purchased
- Work must be done with proper care and diligence
- Person doing work must have necessary skills and qualifications
- Materials supplied must be of merchantable quality
Evaluation of SOGSOS Act 1980
- Customers get money back if goods are not up to legal standards
- Consumers do not lose money after buying a faulty product
- Customers cannot be fooled into accepting a credit note by retailers who put such signs
- Bans these signs and protects people who do not know their rights
- Doesn’t apply to second hand products except cars or something from a private individual
Consumer Protection Act 2007
Prohibits: • False product descriptions • False prices • False or misleading advertisement • Businesses must engaging in aggressive practices - harassing, coercing
Evaluation of Consumer Protection Act 2007
- Customers get fair and honest information about what they are buying and the price they will have to pay
- They law ensures that they can’t be lied to or mislead
- People aren’t aware of their rights
- More advertising about rights
Competition and Consumer Protection Commission
Promotes fair competition and protects the interest of consumers
• Provides information and advice to the public and businesses
• Advises the government on how best to ensure fair competition
• Enforces consumer and competition law
• Publishes a list identifying businesses breaching consumer law
Non-legislative ways of resolving conflict
- Talk to retailer (Know your rights, receipt, ask to speak to manager, complain in firm and friendly manner)
- Letter of complaint
- CCPC
- Trade Associations
Consumers’ Association of Ireland
- Non-commercial organisation
- Protect and promote interest of consumers
- People pay annually and receive a consumer magazine “Consumer Choice” and advise on consumer rights
Financial Services Ombudsman
Resolves consumer complaints against financial institutions
Final non-legislative solution
Office of Ombudsman
Public services
Complaints against state-owned organisations
Makes recommendations
Small Claims Court
Goods up to €2000
No solicitor needed
€25 fee
• Applicants completes a form describing situation which can be accessed online or by post
• Sent to Registrar which is sent to Respondent (business in dispute)
• Counterclaim - follow same procedure
• Admit - comply with submitting to judgement
• Ignore - deemed to have admitted it
