Topics 1 & 2

Question 1

What are the 3 elements for contract formation?

Answer 1

• Consideration, Intention to be bound, offer and acceptance

Question 2

How does an agent complicate the offer & acceptance in property? Explain this across the three main methods of sale

Answer 2

• Agent is intermediary with the ability to accept on behalf of the vendor, but not commit the vendor. This is with the exception of a very temporary time period after an auction close.

Question 3

What is the clause in the Property Act 2007 that affects property contracts

Answer 3

S24 PLA 2007 - In writing and signed by the enforced-against party

Question 4

What are the two types of terms in a contract?

Answer 4

Express and implied

Question 5

What are rebuttable presumptions?

Answer 5

They are presumptions the court makes about contracts depending on the context. For instance, bus is typically formal in oral, whearas, social is not.

Question 6

What are the various ways a revocation of offer can be done?

Answer 6

• By oral or written conduct up until acceptance or via lapse of reasonable period of time

Question 7

What are the exceptions that will invalid contracts, even with the necessary elements

Answer 7

Lack of capacity, illegality, and unauthorization from directors in case of companies

Question 8

Explain the Four Corners doctrine and give one example of exception

Answer 8

Confined to contract document. WIth exception of pre done oral agreements

Question 9

Can a bidder remove their bid at Auction?

Answer 9

Yes - this is confirmed by the Fair Trading Act 1986 S36 as well

Question 10

Can a vendor remove their property at Auction?

Answer 10

Yes - at any point until close

Question 11

Explain how the reserve price interacts with the withdrawl ability for the vendor, as well as the ability to make vendor bids and vendor terms

Answer 11

• Withdrawl — vendor can’t withdrawl once met
• Vendor bids – cannot make past
• • Vendor terms - must disclose if there is one, but not what it is

Question 12

Who can make vendor bids

Answer 12

The vendor bid or ONE authorized oerson

Question 13

Explain the legal interpretation of unilateral vs bilateral contracts

Answer 13

Unilateral - one way, if you do X you get x

Bilateral - exchange of promises

Question 14

EXPLAIN the two different types of conditions

Answer 14

• Precedent - no contract until the condition satisfied

- Subsequent - Contract but no contract if not satisfied

Question 15

Explain the three different types of things one can do involving the parties involved in a ADLS SPA

Answer 15

Nomination [normal, liable still, other carry out transaction]

• Assignment [Give benefits, retain burden]
• Novation [clean break]

Question 16

What is the default position on GST in the ADLS SPA

Answer 16

INcl

Question 17

With the ADLS SPA default, when is the deposit patyable and when does it accrue interest

Answer 17

• Imm. upon execution, 3 working days

Question 18

What is the limitations of Requisitions in ADLS SPA

Answer 18

• Good title,

- Only cancel if goes to the root of tilte

Question 19

How long is the requisitions period?

Answer 19

10 working days or at settlement if settlement is earlier

Question 20

What does a subdivision effect the requisitions period

Answer 20

5 day extensions from issue

Question 21

Explain the timings involved in the LIM condition

Answer 21

5 days to get the other party the LIM from agreement date. 15 days to object

Question 22

Explain the timings involved in the LIM condition

Answer 22

5 days to get the other party the LIM from agreement date. 15 days to object

Question 23

Explain what the privity of contract means [2 main things] and if there is an exception to this?

Answer 23

Privity of Contract
- Only parties to can enforce the contract, the contract cannot enforce obligations on parties not to the contract

Exception

• CCLA Part 2, Subpart 1: If someone has a promise within that confers benefit and is sufficiently designated
• 2 elements: Promise made within AND sufficient designation within.

Question 24

What was the main ratio of the Closurepac Case?

Answer 24

That the first element of CCLA Part 2, Subpart 1 failed

Question 25

What are 3 types of mistakes and what is the legal premise around CCLA P2, Subpart 3

Answer 25

Legal Premise
- Creating verification for actual mistakes so to balance commercial security

Types of Mistakes

• Mutual Mistake [Different mistake, same matter of law]
• Unilateral Mistake [One party, other party knew]
• Common Mistake [Both parties, same mistake]

Question 26

What are the four main elements for a mistake to qualifty under the CCLA 2017

Answer 26

1) It was indeed a mistake [and not one of the exceptions e.g expectations, interpretation, ignorance]
2) It resulted in an inequality of value exchange [not just value but also consideration to benefit counts]
3) No clause within the contract the makes bearing of full risk assumption [Hedley Berne Case]
4) The Mistake must of influenced the party to enter into the contract [Just being material is sufficient, not necerssarily decisive]

Question 27

What are the main ways a court can grant relief for mistakes?

Answer 27

• Contract level: affirm, vary, cancel
• Transfer of property
• Order of performance
• Retrification [Reflect true intentions]
• Non est factum [this is not my act]

Question 28

What are the three main scenarios where you can cancel contracts?

Answer 28

• Actual or anticipatory Breach of an essential term or with substantial effect [10-15%][objective test or value]
• Repudiation or partial repudiation
• Misrepresentation

Question 29

What are the two main types of breachs?

Answer 29

Actual or anticipatory breach [term-specific]