contract law 1 Flashcards
(21 cards)
what is a contract
an agreement between two or more persons that is legally binding
are social and domestic agreements legally binding
generally no
five essential elements of a contract
agreement, intention to create legal relations, compliance with formalities, consideration and capacity to contract
agreement
offer and acceptance of definite terms
compliance with formalities
contracts can be oral but are mostly written
consideration
promise in exchange for a similar promise from the other party
capacity to contract
party must legally be able to enter the contract
simple contract
contract that can be made in any form
speciality contract
contract that must be in a specific form to be legally enforceable e.g. written/deed
unilateral contract
one party makes promise of an action if another party performs a specific action (non obligatory) e.g. reward for lost property
bilateral contract
both parties make a promise to each other e.g. buying goods
what differentiates an offer from an invitation to treat
an offer is a clear proposal that can be accepted to form a contract, a treat is an invitation to make an offer
can an offer be revoked
can be withdrawn anytime before it is accepted
what happens if a counter offer is rejected
considered a rejection of the original offer
when does an offer lapse
after a specific or reasonable time has passed
what is required for acceptance of an offer
acceptance must be unconditional and a positive act
positive act
something that a person does openly and intentionally
what isn’t considered acceptance in a bilateral contract
silence
how must acceptance be communicated
by the offeree or an authorised agent to the offeror
pharma soc of gb vs boots
contract is completed when customer pays for goods at counter, not when they put goods in their basket (pharmacist must be there for sale)
