Contract Law Flashcards
(36 cards)
What is an offer in contract law?
An offer is an expression of willingness to contract on certain terms, intended to be binding once accepted (Treitel, The Law of Contract).
How is an offer different from an invitation to treat?
An invitation to treat invites negotiations and is not a binding offer (e.g., advertisements, goods on display, auctions).
What are the rules for acceptance in contract law?
Acceptance must be unconditional, communicated to the offeror, and made within a reasonable time.
What is the postal rule?
Acceptance by post is effective when posted, even if lost in transit (Adams v Lindsell). However, it does not apply if the offeror specifies actual receipt (Holwell Securities Ltd v Hughes).
What is consideration in contract law?
Consideration is something of value exchanged to form a binding contract. It must be sufficient but need not be adequate.
Can past consideration be valid?
Generally, past consideration is not valid unless it was requested by the promisor with an expectation of payment (Re Casey’s Patents).
What presumption applies to social agreements?
Domestic agreements are presumed not to create legal relations (Balfour v Balfour), but this can be rebutted in cases like Merritt v Merritt.
How do courts determine commercial agreements?
In commercial agreements, there is a presumption of intent to create legal relations, which can be rebutted by clear wording (e.g., ‘binding in honour only’).
What happens if contract terms are uncertain?
If essential terms are uncertain, the contract may be void for uncertainty (Scammell v Ouston).
Who lacks contractual capacity?
Minors, individuals with mental incapacity, and intoxicated persons may lack capacity. However, contracts for necessities are binding.
What is the doctrine of privity?
Only parties to a contract can enforce it (Dunlop v Selfridge), with exceptions under the Contracts (Rights of Third Parties) Act 1999.
What statute allows third parties to enforce a contract?
The Contracts (Rights of Third Parties) Act 1999 allows third parties to enforce terms if they are expressly mentioned or if the contract benefits them.
What are express terms?
Terms explicitly agreed upon by the parties, either written or spoken.
How can terms be incorporated into a contract?
Through signature (L’Estrange v Graucob), reasonable notice, or prior dealings.
How can terms be implied?
By common law (business efficacy test) or statute (Sale of Goods Act 1979, Consumer Rights Act 2015).
What is an exemption clause?
A term that limits or excludes liability, subject to controls under the Unfair Contract Terms Act 1977 and Consumer Rights Act 2015.
What are the types of contract terms?
Conditions (fundamental terms), warranties (minor terms), and innominate terms (depends on breach consequences).
How can contracts be varied?
By mutual agreement, fresh consideration, or promissory estoppel (Central London Property Trust v High Trees House).
What are the types of misrepresentation?
Fraudulent, negligent (under Misrepresentation Act 1967), and innocent misrepresentation.
What types of mistake can affect a contract?
Common, mutual, and unilateral mistakes can render a contract void or voidable.
What statute regulates unfair contract terms?
The Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015.
What is duress?
Illegitimate pressure or coercion affecting consent, including economic duress (Atlas Express v Kafco).
What happens if a contract is illegal?
It may be void and unenforceable, depending on statutory provisions and public policy.
