Contract 2 - Contract Terms Flashcards
What are the contents of a contract defining rights and obligations called?
Terms.
Terms define the legal relationship between the parties involved.
What are the three groups into which statements made during negotiations can be divided?
- Mere puff
- Representations
- Terms
What constitutes a breach of contract?
Failure to fulfill a term.
A breach of contract occurs when a binding term is not met.
What is a misrepresentation?
An unfulfilled representation that is not a breach of contract but may allow for a remedy.
Misrepresentation provides grounds for legal action but differs from breach of contract.
What is the objective test used to determine if a statement is a representation or a term?
What would a reasonable person understand to be the intention of the parties?
What factors are examined to determine whether a statement was meant to be binding?
- Importance
- Timing
- Writing
- Special knowledge or skill
- Assumption of responsibility
True or False: A signed written contract binds a party even if they have not read or understood the terms.
True.
What must be shown for terms to be incorporated by a course of dealing?
Consistency and regularity over time.
What is an ‘entire agreement clause’?
A clause stating that a document constitutes the entire agreement between parties, superseding previous arrangements.
What are implied terms?
Terms inferred by courts that are binding to the same extent as express terms.
What is the difference between terms implied in fact and terms implied by law?
- Terms implied in fact: Reflect presumed intentions of the parties.
- Terms implied by law: Arise from legal duties in certain contractual relationships.
What conditions must be met for goods under the Sale of Goods Act?
- Title
- Description
- Satisfactory quality
- Fit for particular purpose
- Sale by sample
What are the obligations on a supplier under the Supply of Goods and Services Act?
- Care and skill
- Time of performance
- Consideration
What remedies are specified under the Consumer Rights Act 2015 for breached implied terms?
- Short term right to reject
- Right to repair/replacement
- Right to a price reduction/final right to reject
Fill in the blank: A statement that is a term and is not fulfilled amounts to a _______.
breach of contract.
True or False: The burden of proof that a breach is slight and unreasonable is on the buyer.
False.
What must be included for goods to be of satisfactory quality under the Consumer Rights Act?
- Meets reasonable person standards
- Considers description and price
- Accounts for public statements about the goods
What is the implication of a statement made at the time of contracting?
It is more likely to be treated as a term of the contract.
What is the implication of onerous terms incorporated by notice?
Must be made especially clear to the other party.
What is the statutory term regarding satisfactory quality under the Sale of Goods Act?
Goods must meet the standard of a reasonable person considering description, price, and relevant circumstances.
What does the Consumer Rights Act specify about services provided?
- Performed with reasonable care and skill
- Provided in a reasonable time
- Reasonable price if not agreed
What is the ‘final right to reject’ in consumer rights?
Consumer is entitled to a full refund within 6 months if goods do not conform after one repair or replacement or if repair/replacement is impossible or disproportionate.
Does not apply to motor vehicles or statutorily specified goods.
What must a trader do if digital content is non-conforming?
The trader must repair or replace the digital content in a reasonable time without significant inconvenience to the consumer and bear any necessary costs incurred.
Includes costs of labor, materials, or postage.
