so what is a contract? Flashcards
Does a contract always have to be a formal, written document?
No, generally any agreement requiring action by at least one party can form a contract. Only some contracts must be in writing.
What is generally required for an agreement to be considered a contract?
An agreement between parties that requires some form of action or performance by at least one of them.
What are examples of different types of contracts?
Contract of sale, lease or hire, loan, carriage, employment, and services.
What is a contract of sale?
A formal or informal sale of goods or property, such as selling a house or buying a can of coke.
What is a contract of lease or hire?
Transfer of possession of property (like a house, car, or kilt) to another person, often for rental payment.
What is a loan in contract law?
The transfer of property, usually money, to another person, to be repaid or returned over time.
What is a contract of carriage?
An agreement like buying a train or ferry ticket to transport a person or goods.
What is a services contract?
An agreement where one party provides services (e.g., legal advice, repairs) to another, usually for payment.
What is a contract of employment?
An agreement where an employee provides regular services to an employer in exchange for a salary.
Can a single contract involve a mixture of different contract types? (Example?)
Yes. For example, a mobile phone contract can involve hire (handset), sale (after a point), and services (network, minutes, data).
Why are informal contracts often the focus of interesting contract law cases?
Because informal contracts often have gaps and less input from lawyers, making disputes more likely.
What problems are more common with informal contracts compared to formal written contracts?
Informal contracts tend to have gaps and unclear terms, which lead to legal disputes.
What can courts do if a party fails to perform their contractual obligations according to MacQueen and Thomson?
Courts can compel the parties to perform the agreed obligations or provide a legally recognised substitute, such as awarding damages.
What action can an obligee take if the obligor does not comply with their contractual obligations?
The obligee can ask the court to enforce the contract, either by ordering performance or by awarding compensation (damages).
Why is it important to consider enforceability when analysing a contract?
Because enforceability determines whether a court would be willing to enforce the contract if necessary, even if there is no current court dispute.
Can you form a contract on your own?
No, a contract requires two or more parties; you cannot agree with yourself.
Do all parties to a contract have to undertake obligations?
No, not all parties must have obligations; one party’s duty may simply correspond to another party’s right.
What is an onerous (bilateral/mutual) contract?
An onerous contract is where both parties undertake obligations and exchange performances.
What is a gratuitous (unilateral) contract?
A gratuitous contract is where only one party is obliged to perform, while the other party receives something without giving anything in return.
How does English law view gratuitous contracts?
In English law, gratuitous contracts are generally not valid because there must be sufficient consideration exchanged.
