Contracts Flashcards
What is a contract?
A legally binding document between two or more parties.
What is the role of law in contracts?
To resolve contractual disputes using statutory and common law.
Give examples of types of contracts used in business.
Employment, Finance, Building, Phones, Purchase/Sales of assets.
What are the three main elements of a contract?
Agreement, Intention, Consideration.
What is an offer in a contract?
A proposal to enter a contract with the intention of being legally bound.
What is an invitation to treat?
An invitation to make an offer, not an offer itself.
What is acceptance in a contract?
Agreement to the offer without any conditions.
What is intention in a contract?
All parties must intend to create a legal relationship.
What is consideration in a contract?
Something of value exchanged between parties, usually money.
What is legal capacity in a contract?
All parties must be capable of entering a contract (e.g., over 18, of sound mind).
What is consent in contract law?
All parties must be free and willing, not under duress.
What is legal purpose in a contract?
The contract must be for a legal aim (e.g., not for illegal activities).
What is ‘performance’ in a contract?
Completion of the actions agreed to in the contract.
What happens when a contract is breached?
The court may order completion or payment of damages.
What are the two types of contracts?
Written and Verbal.
What is a written contract?
A legally binding agreement documented in writing, required for some transactions.
What is a verbal contract?
An unwritten agreement that can still be legally binding (e.g., employment contracts).
What are the benefits of having a contract?
Clarity of responsibilities, stated consideration, dispute resolution, and termination process.
What are some key features of EMPLOYMENT contracts
hours of work, leave, superannuation, type of employment, salary/wages, duties, location, promotion and discipline policies.
