Contract and Tort Flashcards
(220 cards)
What is a bilateral contract?
A bilateral contract is where both parties assume an obligation to each other.
What is a unilateral contract?
A unilateral contract is where one party makes an offer that calls for an act to be performed by one or more other parties.
What is required for a valid agreement?
One party must make a clear and certain offer displaying an intention to be bound, and the other party must unequivocally accept the offer.
How do courts determine if an agreement exists?
Courts take an objective approach, considering what a reasonable person would say was the intention of the parties.
What constitutes an offer?
An offer is an undertaking to be contractually bound by the terms of that offer upon unconditional acceptance by the offeree.
What is an invitation to treat?
An invitation to treat is a preliminary statement expressing a willingness to receive offers and cannot be accepted to form a binding contract.
Give examples of invitations to treat.
Examples include goods displayed in shop windows, advertisements for no reward, and auctions with reserve.
How can an offer be terminated?
An offer can end by rejection, lapse, or revocation.
What is a counteroffer?
A counteroffer is a response that introduces new terms or varies the original offer, which implies rejection of the original offer.
What happens to an offer if the offeree dies?
The death of an offeree will cause the offer to lapse.
Can a bilateral contract be revoked?
Yes, a bilateral offer can be revoked at any time before acceptance unless the offeree has given something in return for that promise.
What constitutes acceptance in a bilateral contract?
Acceptance is a final and unqualified assent to the terms of an offer communicated to the offeror.
What is the postal rule regarding acceptance?
Acceptance may be binding when posted if it is reasonable to send by post, properly stamped, and the offeror has not excluded the postal rule.
What is consideration in contract law?
Consideration is an act of forbearance by one party for the promise of something in return.
What must consideration be?
Consideration must be sufficient, meaning it is worth something in the eyes of the law.
What is promissory estoppel?
Promissory estoppel allows a contract to be enforced despite not being supported by consideration under certain conditions.
What is the presumption regarding intention to create legal relations in a commercial context?
There is a very strong presumption that the parties intended to create legal relations.
What is the doctrine of privity of contract?
The doctrine of privity states that only parties to a contract can acquire rights and be subject to liabilities under that contract.
What is actual authority in agency law?
An agent has actual authority if they have been expressly or impliedly authorized by the principal to contract on their behalf.
What is the difference between terms and representations?
A term is a statement intended to be binding, while a representation is a statement not intended to be binding.
What is required for incorporation of terms by notice?
Terms can be incorporated by notice if reasonable steps are taken to bring the terms to the other party’s attention before or at the time of contracting.
What does the Sale of Goods Act 1979 imply?
The SGA implies terms into sale of goods contracts that are not covered by the CRA.
What is an implied condition under Section 14(2) of the Sale of Goods Act?
There is an implied condition that the goods supplied under the contract are of satisfactory quality.
What does the Services Act 1982 (SGSA 1982) imply?
The SGSA 1982 implies terms into contracts for services, and contracts for work and materials that are not covered by the Consumer Rights Act (CRA).