Contract Law Flashcards
(21 cards)
Is an advert normally and offer, invitation, or acceptance?
Invitation
When is an advert not an invitation?
When the advert offers a reward.
Are goods in a supermarket or shop window an invitation, offer, or acceptance?
Invitation.
When can an offer be revoked?
Any time before acceptance
What happens when an offer is not accepted until after a significant lapse of time.
The offer can be terminated even if not communicated until after acceptance
How does death affect an offer.
Terminates the offer if for personal services, but otherwise it stands (unless acceptor is notified of death before acceptance)
Is a request for information an offer?
No (e.g. asking how much something costs)
What is the postal rule?
Acceptance is binding the moment it is posted. This does not apply to revocation
What is consideration?
The “price” (value) each party gives in a contract.
Simple (parol) contracts must be supported by consideration. (So does not apply to specialty contracts)
What is a specialty contract?
Where the validity comes from the formal process, rather than from consideration.
E.g. if a contract is signed in front of witnesses
What is an innominate term in a contract?
Where it’s not known whether it’s a condition or warranty until breached
What is business efficacy?
A judicially implied term included to make the contract work in a sensible way.
What is trade custom?
A judicially implied term where it is part of a well-established custom within the trade or locality that the parties are operating
What is course of trade?
A judicially implied term where there is a pattern of trade between the parties, the terms of those dealings can be carried over to future contracts.
What are judicially implied terms?
Where the courts “fill the gaps” of a contract
What is a statutorily implied term?
A term inserted into a contract automatically by legislation
What is the ‘Title’ term?
A statutory term that the seller has the right to sell the goods and will pass them free from undisclosed charges.
What is the ‘satisfactory quality’ term?
A statutory term that goods would reach the standard a reasonable person would consider satisfactory.
Considers:
- Description
- Price
- Fitness for use
Etc
What is the ‘sample’ term?
A statutory term that the bulk which match the sample in quality, and the buyer has the chance to compare the bulk and sample, and there are no hidden defects in the sample.
What is the ‘description’ term?
A statutory term that goods sold by description must correspond exactly with that description
What can’t you exclude liability for?
- Negligence resulting in death or personal injury
- Partial or incomplete performance
