Semester One : Contracts Flashcards
(28 cards)
Sale of Goods Act 1979
Requires all goods that are bought or sold in the UK to be as described, of satisfactory quality and fit for purpose.
Misrepresentation Act 1967
Exists to protect consumers from fraudulent claims that induce you into buying something or into a contract.
Consideration
- An agreement is only legally binding if it is supported by “consideration”.
- A gets something in return for what they undertake to B.
Offer and Acceptance
- Contract will only be concluded once an offer has been made and been validly accepted.
- Doesn’t need to be in writing, in English Law, a contract made orally is as valid as one made in writing.
Unilateral contract
A promise to do something in return for someones else doing a specific act.
Bilateral contract
Each side promises something
Offer vs Invitation to Treat
- Not all apparent offers carry intention to be legally bound, merely invitations to open negotiations.
- Harvey v Facey
Advertisements
- Certain types of advertisements held to be by definition to treat, not offers.
- Advertisement of goods for sale at a given price, these do not bind seller to sell to potential buyer.
- Scancarriers A/S v Aotearoa International Ltd.
Offer v Counter-Offer
- Each counter-offer acts as a rejection of the previous offer.
- Hyde v Wrench
Acceptance
- Contract only comes into effect once the offer is accepted.
- Must be offered by either the offer or by their nominated agent.
Waiver of Communication
Offeror may indicate that simple non-reply will indicate acceptance.
Postal Rule
- Acceptance is deemed to be made when the letter was posted.
- Contract is concluded in place where letter sent is.
- Brinkibon Ltd. v Stahag
Acceptance by Action
In a unilateral contract, acceptance will be by an offeree performing an act.
Revocation of Acceptance
- Acceptance only valid once communicated by offeror, may be revoked before then.
- Exception for postal rule, acceptance valid once posted, can not be revoked after that.
- Kinch v Bullard
Representation
If the party did not intend to be contractually liable for accuracy of a statement.
Warranty
If the party did intend to be contractually liable for the accuracy of a statement.
Conditions
Fundamental terms of contract
Promissory Conditions
- Promise fundamental to counterpart’s agreement to contract.
- e.g. in shipping contracts, that ship is in a given port or will leave port for destination on a given date.
Non-promissory conditions
Condition may not be a promise but rather a term stating that A’s obligation will not arise until a specific event takes place.
Innominate Terms
- Certain terms contain obligations whose breach may be substantial, or not, depending on circumstances.
- e.g. a ship may be totally unfit for voyage or might need only a minor repair in order to be fit.
Illegality
If performing an obligation under contract would mean committing an illegal act, the party is excused from performing it.
Contract to commit crime
- If parties know performance would be a crime, to enter into it will also be a conspiracy to commit the crime.
- Tinsley v Milligan
Contract to commit tort
- Contract to defame someone also held to be enforceable and void for illegality.
- Clay v Yates
Frustration
If the performance of obligation has become impossible, both parties are released from under contract.
