HKU Space day 2 Contract Flashcards
Contract Law
Conisderation
Consideration means the subject of the contract
(Ie; bag of chips when purchasing)
Contract
Legally enforceable agreement that contains the rights and responsibilities of the contracting parties.
- Oral
- Writing
Requires a benefit out of it (buying candy is also a contract)
Subsidiary legislation
By implied nature, a contractual relationship with the other party
MTR is a public servant, you are the public
Elements needed to form a valid contract
**Mutual assent **(offer + acceptance);
Consideration (bargained for legal detriment)
No defenses to formation
Reasoning for written agreements
High value transactions, ie; real estate. Meaning some contracts must be in writing
Ordinances
Ordinances define the rights and contexts that consumers and distributors have.
Stops the exploitation of consumers
Ie; Sales of Products, ordinances
Chitty on Contracts
Chitty on Contracts is one of the leading textbooks covering English contract law.
Damages
What consumer should have get back from a contract that was breached
Contract formation
- Offer, Can be a monetary
- Consideration
- Acceptance
- Intention to create legal relations
- Sufficently enforcing the agreement
4. Presumption of gift to family members
- $10 for a bag of Chips
- Bag of Chips
- Purchasing the bag of Chips
- Contracting relationship asking two firms to do part of Construction
- Completing the terms of the contract to a “sufficent” standard
bilateral contract
Contract created by mutual promise of performance. The most common type of contract.
You agree to pay a certain amount of money in exchange for title of a home.
unilateral contract
Requires full performance as method of acceptance; binding once performing party begins performance
Giving money to a person after finding a pet
Objective V Subjective
Subjective, up to Interpretation
Objective, A matter of Fact
“good” = Subjective
“Facts” = Objective
The Objective Test
It focuses on how a reasonable person would percieve the offerors conduct or expressions, instead of the offerors thought process.
Whether an offer existed is assessed Objectively, rather than Subjectively
Mistakes in contracts
Chwee Kin Keong v. Diiglandmall.com [2004]
Snapping up contract issue within the contract.
Issue with the pricing (should be $3600 instead of $66)
Invitation to treat vs offer
An invitation to treat allows the other party to make an offer.
Whereas in an offer, there is usually only acceptance or rejection of it.
(Selling a footballer)
Gibson v. Manchester City Council [1979]
Case was a dispute around contract breaches.
Vauge statements ie; May be prepared to sell, was merely an invitation rather than a formal offer
Vauge terms such as “may” and “will consider” did not consitute a binding offer
Contract drafting typically uses simple english to provide the clearest provisons
What is considered inv to treat
Auctions, Displays, Advertisments and requests to tender
Adveritisments for unilateral contracts are more likely to be regarded as offers
PSGB v. BSC
Display of goods in bilateral contracts are a invitation to treat
Carlil v. Carbolic Smoke Ball Company [1893]
Key case
- Defendant place an advert stating that anyone who used their product but still catch influenza can claim for 100 which was depsoited in the bank
- The plaintiff did that, but the defendenat refused to pay, claiming that the advert was an inivtation to treat
(Not a binding offer)
Adveristment for Unilater contract (with sufficent intention to be bound) is an offer
Acceptance
“Final and unqualifed expression of assent to the terms of an offer”
General rules of Acceptance
To Bind an offerer an acceptance must be
1. Final and not Tentative
2. Unqualifed, no conditions or Variations
3. Objectivley Manifested
4. Expressed through conduct
Acceptance subject to the contract
An acceptance made subject to contract to contract is not unqualifed, meaning it is not a binding acceptance
Beacuse neither party intends to be bound until a formal contract is made meaning each party reserves the right to withdraw until a binding contract is made
Lawyers need to draft a settlement agreement
Subject to contract
Exceptions: Subject to contract is waived if there is subsequent conduct shwos that the parties intended to be bound
By way of conduct/words some of the original contractual rights are given away to make the other party to be bound by words or communication
Entire Agreement Clause
EA clauses are designed to ensure that the arrangements that have been agreed between the parties is limited to what is actually written in the contract and nothing more.
