Flashcards in Contracts 1st Semester Deck (46)
Offers may be revoked at anytime before acceptance. The exception is where the offeror has stipulated time during which offer is to remain open for acceptance. In the absence of stipulation, what happens?
In the absence of any such stipulation offers lapse after a reasonable time.
Wylie & Lochead v McElroy and Sons
Issue: Offered iron works for McElroy and Sons. Offer wasn't accepted until 5 weeks later when the price of iron had increased; offer lapsed.
What does the case of May & Butcher Ltd v The King show?
That agreements to agree are not enforceable contracts.
What is personal bar?
Personal bar is when a rightholder is barred from exercising a right.
What are the two elements to personal bar?
Inconsistency - behaviour on part of rightholder that is inconsistent with the exercise of the right.
Unfairness to the other party.
In essence, what is the point of personal bar?
The rightholder has acted (or refrained from acting) to give the other party the clear impression that they will not be exercising the right and it would now be unfair to allow him or her to do so.
What are the three types of obligations and what do they mean?
> Pure obligation - due at once
> Future obligations - due on occurence of a certain event
> Contingent obligations (Either suspensive or resolutive)
What is a suspensive/resolutive obligation?
Suspensive - Due on occurence of uncertain event
Resolutive - Due until occurence of uncertain night
What are two presumptions made with intention to create legal relations?
> Social agreements are not contracts
> Commercial agreements are contracts
What does certum est quod certm redii potest mean?
If something is capable of being made certain, it should be treated as certain.
Is an agreement to agree enforceable?
What is an independent mechanism?
An independent mechanism is a valid 3rd party which would set the prices or any other necessity of a contract in an unbiased manner.
What steps can be included to ensure a contract that leaves out things like the price set is enforceable?
Introduction of an independent mechanism.
What is a declarator?
An action by the courts whereby a legal right or status is declared but nothing further done.
What is the exception to the rule that offers may be revoked at anytime before acceptance?
Exception is where offer has stipulated time during which offer is to remain open for acceptance.
Can acceptance be stipulated by silence?
Is writing required for the formation of a contract?
What is necessary for the validity of the contract?
A subscription by each grantor.
What does a coutner offer do to the original offer?
Extinguishes the original offer
What are some presumptions made it when it comes to offers and invitations to treat?
> Goods on display in a shop are invitations to treat.
> Advertisements are almost always invitations to treat.
> Invitations to tender are invitations to treat.
Can offers be revoked at anytime before acceptance?
What is consensus in idem and why is it important?
Consensus in idem is latin for a meeting of the minds. It's important because both parties must agree on the same thing and for a contract to be enforceable, it must be reasonably definite.
What is an offeror and offeree?
> Party making offer is offeror
> Party whom offer is being made to is offeree
What does unqualified acceptance do to an offer?
Converts an offer into a contract
What happens if someone with no legal capacity enters a contract?
Contract is void.
At what age do you have legal capacity?
Is protection offered to 16/17 year olds?
Yes to some extent.
What is a prejudicial transaction?
A prejudicial transaction is defined as a transaction which an adult wh was exercising reasonable prudence wouldn't have entered the contract and causes substantial loss.
What are the governing authorities inr egards to contract and capacity?
The governing authority here is the 'Age of Legal Capacity (Scotland) Act 1991' and the 'Adults with Incapacity Act 2000'
What is a promise?
A promise is a unilateral obligation which needs no acceptance and is irrevocable once made, however, if the promise is rejected then the promisee no loger needs to fill out their obligation.