Formation of a contract Flashcards
What is a contract?
It is an agreement between two parties who are bound by law to carry out the obligations under the contract.
Is the contract legally enforceable?
Yes
What do contracts regulate?
Relationships so that both parties have the confidence that the law can enforce such obligations.
What is it called if either party fails to carry out their part of the agreement?
A breach of contract
Definition of breach of contract?
When a party fails to carry out any of their obligations under the agreement; or in carrying it out they do not do what they are supposed to do.
What can the injured party ask the defendant to do after a breach of contract?
To either carry out the agreement, or ask for compensation in a court of law.
What makes a contract legally binding?
An intent to form a legally binding agreement.
What are the two key types of contract?
Social and domestic agreements
Commercial or business agreements
What is the presumption in social and domestic agreements?
That there is no intention to create legal relations unless the contrary can be proved
Are social and domestic agreements legally enforceable?
No
What is the rebuttable presumption in commercial or business agreements?
That there is an intention to create legal relations, unless the contrary can be proved.
Are commercial or business agreements legally enforceable?
Yes
What is contract made up of?
Agreement, consideration and an intention to create legal relations.
What is an agreement made up of?
Offer and acceptance
