lecture one

Question 1

What is a contract?

Answer 1

“an agreement between two or more persons (the parties) having the capacity to make it, in the form demanded by law, to perform, on one side or both, acts which are not trifling, impossible or illegal”
MacQueen and Thomson, para 1.10

Question 2

Types of contract

Answer 2

• Sale
• Lease/hire
• Loan
• Carriage
• Employment
• Services

Question 3

enforceability of contracts

Answer 3

MacQueen and Thomson, para 1.10
“If necessary, the courts can be used to compel the parties to make the agreed performance or to provide a legally recognised substitute therefor, such as damages.”

Question 4

onerous contracts

Answer 4

• Onerous (sometimes called ‘bilateral’ or ‘mutual’): the typical type of contract, where both parties undertake obligations and there is an exchange of performance.

Question 5

gratuitous contracts

Answer 5

• Gratuitous (sometimes called ‘unilateral’ – but note controversy): ie. only one party is obliged to perform (even though both of them agreed the contract);

Question 6

promise

Answer 6

A promise is a unilateral, gratuitous obligation that only requires one party’s commitment, without needing the beneficiary’s agreement to be enforceable. Morton’s Trs v Aged Christian Friend Society of Scotland

Question 7

Rules of a promise:

Answer 7

• The promisor must clearly intend to be bound.
• The promise creates an obligation by expression alone.
• The promisee doesn’t need to accept, know, or exist at the time.
• No return is needed for the promisor’s performance.
• A promise can be conditional, but only the promisor is bound.