Contract Law AOS 3 Flashcards
(31 cards)
Contract.
A legally binding agreement between two or more parties.
What must there be for a contract (in terms of parties)?
- Offeror
- Offeree
What does a contract require (sum)?
Intention+Agreement+Consideration=Contract
What are the elements of a contract?
- Offer
- Acceptance
- Consideration
- Certainty of terms
What are all of the requirements of a contract?
- Intention to create legal relations.
- Offer.
- Legality of contract.
- Certainty of terms.
- Validity of contract.
- Capacity to contract.
- Acceptance.
- Consideration.
Offer.
Entry into an agreement and being bound by the agreement.
Invitation to treat.
An offer for someone to make an offer (Eg. Sticker price on a car).
An offer can be:
- Written
- Verbal
- Physical
Termination of an offer can occur by:
- Lapse of offer.
- Revocation of offer.
- Rejection of offer.
- Death of offeror.
- Non-occurrence of condition.
Acceptance.
Unconditional agreement to the same terms as the offer.
What must be included in acceptance of an offer?
- Communication.
- Both parties must be aware of the contract.
- Unqualified.
- Time limit (for conditions to be accepted).
Consideration.
Something given, done or suffered in return for the offer.
Rules of consideration:
- Can be present or future;not past.
- Must be of some value but need not be adequate.
- Nature of consideration must be definite.
- Must be able to carry out.
- Must not be illegal or unlawful.
What types of contracts do minors have?
- Valid
- Voidable
- Void
Explain a valid contract.
Three types:
- Necessaries (For stuff for the minor to live).
- Beneficial contracts of service (Provide for employment or education).
- Cash transactions.
Explain voidable contract.
Contracts that are binding unless they are taken away or ratified.
Explain void contract.
Contracts for repayment of money, or payments of goods or services.
What must be present for the terms of a contract to be valid?
Consent from both parties.
However, caveat emptor (buyer beware) still applies.
What would cause a contract to be void?
- Mistake of law or fact.
- Misrepresentation - A false statement of fact to induce a person to enter into a contract.
- Duress - If someone is threatened into a contract.
- Undue influence - When a person uses their influence over another to force them into a contract.
Certainty of terms.
The terms must be clear so that both parties are clear about what they are agreeing upon.
Legality of a contract.
The contract must not break any statute or common law.
Terms.
Can be either express or implied;
- Express: Words in the actual contract which are legally binding.
- Implied: Terms not stated in the actual contract but that are assumed to exist.
Defences.
If not all of the requirements of a contract are met then it is not a valid contract (Eg. Contract is illegal, no consent).
Intention to create legal relations.
A principle of contract law, requiring the parties to intend to create obligation which are legally binding and enforceable.
