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Flashcards in Contract Law Deck (27)
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1
Q

Clauses?

A

Clauses are defined as each party’s duties, rights, and privileges under the terms of the contract

2
Q

Exemption Clauses?

A

A term in a contract that seeks to restrict the rights to parties under a contract

3
Q

Offer

A

Carlill v Carbolic Smokeball Company (1893)

An offer is a proposal by one party to enter into a legally binding contract with another. Can be made orally, writing or by conduct.

4
Q

Agreement

A

An exchange of promises between two or more people whereby one person promises to do something and in return the other person promises to do something else.

5
Q

Intention

A

Whether the parties to a contract intended it to be legally binding contract or merely a social arrangement

court will examine the behaviour of the parties

6
Q

Consideration

A

The value that passes from one party to another

The person taking an action must ensure they have given consideration to enforce the contract

7
Q

Repudiation (minors):

A

Upon becoming an adult, the minor states that they are not prepared to perform their obligations under the contract

8
Q

Ratification (minors):

A

Upon becoming an adult, the minor confirms that they are prepared to perform their obligations under the contract, making the contract legally binding

9
Q

Warranty

A

A warranty is a term that, if breached, does not give a party member the right to terminate the contract; it gives rise only to a right to claim damages.
Less important
Damages can be claimed – contract not void

10
Q

Condition

A

A condition is a term that, if breached, gives a party the right either to terminate the contract or affirm it. In addition, the aggrieved party can also claim damages.
More important
person would not have entered into without it being present
If broken voidable

11
Q

Breach

A

where one party fails to comply with a term of the contract

12
Q

Breach

A

Where one party fails to comply with a term of the contract

13
Q

Performance

A

Contract comes to a natural end because the contract has been fulfilled

14
Q

Defences for Breach of Contract - 6

A
Misrepresentation 
Mistake
Undue Influence 
Unconscionable Conduct
Duress
Frustration
15
Q

Undue Influence

A

Undue Influence is the pressure that one party held against another party to enter intro a contract.

Party A could not form an independent judgement about whether to enter the contract
(B must prove they did not influence A)

16
Q

Void

A

The contract never existed in the first place

17
Q

Voidable

A

The injured party can decided if the contract is to continue

18
Q

Contract

A

A promise between two parties that is enforceable by law

19
Q

Unconscionable Conduct

A

Commercial Bank of Australia v Amardio (1983)
Unconscionable Conduct is where a party takes advantage of another party using their superiority in experience and ability - this is evident in transactions in a way thta offends the conscience.

Being taken advantage of in a transaction in a way that offences the conscience

Taking unfair advantage

Doesn’t matter if it is not particularly advantageous
Those at risk = uneducated, ill, language issues.
Court may set aside the contract

20
Q

To be considered unconscionable

A

it must be more than simply unfair—it must be against conscience as judged against the norms of society.

21
Q

Injunction

A

Injunctions are court orders that compel a party to take a specific action or refrain from doing something.

They are considered to be equitable remedies because they address issues that cannot be remedied with monetary damages

22
Q

Capacity

A

Ability for people to enter into a contract and properly understand their obligations (Cannot if intoxicated, medical problem/illness – Mathews V Baxter

Impaired Mental Capacity

23
Q

Frustration

A

When events occur after a contract is made which fundamentally change the nature of what the parties had contracted for
E.g. a painter dies before they can paint a portrait

24
Q

Duress

A

Duress in defined as Threatened or actual application of violence towards a party in order to influence them to induce them to enter into a contract.

25
Q

Mistake

A

Mistake in contract law is an incorrect understanding by one or more parties to a contract and may be used as grounds to invalidate the agreement

26
Q

Postal Rule

A

Is defined as the time and place at which the acceptance is posted is the time and place at which the contract will be taken to have been formed.

27
Q

misrepresentation

A

A misrepresentation is a false statement of fact or law which induces the representee to enter a contract