Law of contracts

Question 1

Contract w

Answer 1

Written or oral or partially both promise exchanged for another promise or for a preformance that the law will enforce.
They lend a predictability to matters that would be full of uncertainty without them.
Contracts are indispensable tools of business and other human interactions

Question 2

Unilateral

Answer 2

Contract is when one party provides a promise and one party provides a service.

Question 3

Bilateral contracts

Answer 3

Feature an exchange of a promise for a promise. Most contracts are bilateral.
Majority; i will do this, you will do that.

Question 4

Invitations to treat

Answer 4

One person inviting another to make an offer.

Offer is made when we order something.

Question 5

The six Essential Elements of a contract:

Answer 5

Offer, lapse, and revocation
Acceptance
Consideration and seals
Intention to Create a legal relationship
Capacity of the parties to enter the contract
Legality.

Question 6

Offers

Answer 6

An offer is tentative until is accepted

Question 7

Lapse

Answer 7

An offer does not remain open indefinitely. If the offeree fails to accept the offer by a deadline or within a reasonable time it is no longer valid.

Question 8

Revocation

Answer 8

An offer may be revoked any time prior to acceptance unless they have a clause making the irrevocable for a certain time period.

Question 9

Acceptance

Answer 9

Upon being presented with an offer, an offeree may either accept, reject or counter the offer.
Taking a positive step either verbally or with an act.

Question 10

Considerations and seals

Answer 10

The price a party pays for the promise of the other party is consideration.
Price usually refers to monetary amount but not always, It may be a trade of goods or services.
Promises made without consideration are gratuitous and seldom have a remedy under the law if un-fulfilled.

Question 11

Intention to create a legal relationship

Answer 11

Does the person signing the contract have legal authority to do so.

Question 12

Capacity of the parties

Answer 12

Persons who can prove that the time of making the contract they were incapacitated due to mental illness, substance intoxication or senility, may repudiate or enforce the contract at their option.

Question 13

Legality

Answer 13

Absent legality, there is no contract. The purpose of a contract must not be to break the law or run counter public policy.

Question 14

The Privity Rule

Answer 14

Generally the obligations and benefits arising under a contract area confined to the parties to the contract. Persons who are not parties to the contract are called non-parties and not obligated or can confer any benefit from a contract.

Question 15

E-Commerce Considerations

Answer 15

Web based advertisements are regarded as invitations to treat not offers.
Acceptance occurs at the place of acceptance.
Problematic when dealing internationally.

Question 16

Interpretation of contracts

Answer 16

Why is language so important.

Misunderstandings cause problems.

Question 17

Standard form contracts

Answer 17

Used in many areas.
Convenience but leave little room for negotiation terms.
Contracts used in the EM area allow for negotiation.

Question 18

Importance of good grammer

Answer 18

Critical to drafting and interpreting contracts.
Good grammar makes our communications more intelligible and our arrguments more persuasive. It allows for clarity and will less likely to misinterpreted.

Question 19

Termination of Contracts

Answer 19

To discharge a contract is “to cancel or unloose the obligations of a contract”

Question 20

4 ways to discharge a contract

Answer 20

By performance: Both parties have completed their respective partsof the bargain.
By agreement: Both parties must agree to not complete the contract and must be done under the seal
By frustration: Through not fault of either party but due to some unforseen event renders the contract impossible to perform.
By operation of the law: Bankruptcy, death, attaining majority age.

Question 21

Impeachment of contracts

Answer 21

Duress: extortion, violence or the threat of extortion or violence.
Undue Influence: a party was pressured into a contact.
Mistake: the contract differs in some respect from what they intended
Misinterpretation: This is interpreting the contract wrongly either innocently, recklessly or fraudulently.

Question 22

Breach of Contract

Answer 22

A party is usually considered to have met thier obligation under a contract if the obligations have been substantially performed. What constitues substantial performance depends on the contract and the circumstances surrounding the performance.

Question 23

A contract is breached when …

Answer 23

Repudiation: A party may declare that they will not commence or complete the performance required by the contract.
Failure to perform: One party may fail to perform fully as required by the contract.
Sabotage: One party may perform a willful act that is in contradiction to the agreement or that renders the contract incapable of being performed.

Question 24

Remedies

Answer 24

Limitation Periods: Action must commence before the statutory limitation period
Necessity of Loss: One must prove there was a loss in order to sue for punitive damages.
Duty to Mitigate: One must contain the damages as much as reasonably possible once a contract is terminated.