Law Of Contract Flashcards
(24 cards)
Main ingredients of a contract
Idea of agreement
The need to create legal obligations
(Consensus In idem)
Doctrine of consideration
consideration is an act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.
Revocation of an offer
Cancellation
Withdrawal by the offeror before offeree accepts unless a time limit is set for acceptance
When it lapses
Once lapsed it cannot be accepted
Upon death/offeror becomes bankrupt
Upon destruction of subject matter
In event of supervening illegality
Exclusion clause
A clause in the contract which seeks to exclude / limit one party’s liability for breach of contract
Restrictive covenants
Binding conditions that are written into a property’s deeds/contract by a seller to determine what a homeowner can/not do with their house / land under particular circumstances
Nordenfallen v maxim nordenfelt guns and ammunition co ltd (1894)
How to discharge a contract - performance
Once both parties have fulfilled their obligations and performed in the full legal relationship between them with regards to the contract is at an end
Discharge by consent
When both parties agree that all existing perform obligations under the contract will be abandon
Discharge - compensation
The setting off of one obligation against another - settle the difference
Discharge by notation
The OG obligation is extinguished and replaced by a new contract between the same parties
Discharge by confusion
When the same person / company becomes both creditor and debtor - one cannot have an obligation to oneself
Discharge by prescription
This is an area of law whereby rights and obligations are discharged through simply the passage of time - 5yrs and 20yrs
Self help remedies for breach of contract - rescission
The innocent parry rescinds the contract ie brings it to an end
Self help remedies for breach of contract - rention
Innocent party wirhholds payment until the breach is remedied
Self help remedies for breach of contract - lien
Innocent party has legal possession of goods belonging to the other and withholds return of them until performance is made
Judicial remedies for breach of contract
- action for payment of debt
Failure to make loan repayments
Judicial remedies for breach of contract
- specific implement
This action seeks performance under the contract other than payment of debt eg delivery of goods ordered and paid for
Judicial remedies for breach of contract
- interdict
Where the court grants an order for someone to stop doing something
Judicial remedies for breach of contract
- damages
These along with actions for repayment of debt are the most commonly seen in our courts
Liquidate damages
Damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach
Illiquidate damages - the requirement for causation
Damages can only be recoverable for loss which was directly caused by the breach of contract eg builder knocks down an internal wall in error
Illiquidate damages - duty to mitigate loss
Where a contract has been breached causing loss the innocent party is under obligation to take reasonable steps to mitigate that loss
Illiquidate damages- remoteness or loss
In order for the damages to be recoverable they must not be too remote form the breach of contract
Quantum Meruit
A reasonable sum of money to be paid services rendered/ work done when the amount due is not stipulated in a legally enforceable contract
