Chapter 9: Contract Law Flashcards
(19 cards)
The Law of Contract - A Tax Context
What is the Date of Disposal of an Asset for Capital Gains Tax Purposes?
The Date the Contract is Made.
Making a Contract
The Two Types of Contract are:
- Simple Contracts; and
- Standard Form Contracts
Making a Contract
Implied Terms in a Contract are Found in the Following Acts:
- Sale of Goods Act 1979
- Supply of Goods and Services Act 1982
- Late Payments of Commercial Debts Act 1998
Making a Contract
What are the Essential Elements of a Binding Contract?
- Offer (Not Invitation to Treat)
- Acceptance
- Consideration
- Intention to Create Legal Relations
Not Required in Writing Unless Selling Land.
Making a Contract
What is Past Consideration?
Something Promised or Given After an Act Has Been Performed.
Invalid Consideration Not Supporting the Existence of a Contract.
Vitiating Factors in Contract
The Main Factors That Invalidate a Contract Include the Following:
- Illegality
- Mistakes or Misrepresentation
- Duress
Completion Requirements
What are the Completion Requirements for Chattels?
Delivery.
Completion Requirements
What are the Completion Requirements for Land?
A Deed.
Conditional Contracts
What is a Condition Precedent?
A Contract is Suspended Until an Event Happens.
e.g., Sale When Planning Consent Obtained
Conditional Contracts
What is a Condition Subsequent?
A Previously Binding Contract Ends on a Specific Event.
Assignment of Rights
What is an Assignment of Contract?
A Transfer of Rights and Benefits of a Contract From One Party to Another.
Usually Allowable
Assignment of Rights
When is an Assignment of Contract Automatic?
On Death or Bankruptcy.
Novation
What is a Novation?
A Contract of Transfer of Duties and Obligations.
Must be Given Consent.
Discharge of a Contract
When is a Contract Discharged by Performance?
When Both Parties Have Complied Fully and Exactly With the Terms of the Contract.
Discharge of a Contract
How is a Contract Discharged in Agreement?
Where Both Parties Enter Into a Seperate Contract.
In which the Parties Agree to End the Original Contract
Discharge of a Contract
When Would a Contract be Discharged in Frustration?
Where it Has Become Impossible to Perform.
Not Where it is More Expensive.
Discharge of a Contract
What is an Actual Breach of Contract?
Where One Party Fails to Carry Out Their Duties.
Discharge of a Contract
What is an Anticipatory Breach of Contract?
Where One Party Refuses to Carry Out Their Obligations Before the Contract is in Effect.
Remedies for Breach of Contract
The Remedies Available on Breach of Contract are:
- Damages (Subject to Mitigation); and
- Specific Performance Orders.
