Unit 1- Chapter 1: Contract Law Flashcards
(26 cards)
What is An invitation to treat
Where a retailer invites a consumer to make an offer to buy a product which the retailer then can accept or reject
What is a contract
A legally binding agreement between two or more people that is enforceable by law
Example of invitation to treat
A retailer displaying a dress on sale for €100 does not have to sell that dress. They are merely inviting you to make an offer to buy the dress.
What are the 8 essential elements of a contract
Offer Acceptance Consideration Intention to contract Capacity to contract Consent to contract Legality of form Legality of purpose
What is an offer
When one person asks another to enter deal with the.
All terms must be set out clearly and be valid.
NOT an invitation to treat
Example of acceptance
When the supermarket scans your goods
Example of offer
When you lace groceries on a conveyor belt.
NOT an invitation to treat eg a price tag.
What is acceptance
When the other party agrees to the terms of the contract
What is consideration
The payment that must be received by each party (quid pro quid).
The price agreed in a contract Essential element Does not have to be expressed in monetary terms Can be of lesser/more value E.g Trade house for lesser value car
What is intention to contract
All parties entering contract must have a genuine wish to enter into and carry out the contract.
Both parties must mean for it to be a legally binding agreement.
What is capacity to contact
Must have legal ability to enter into contract Everyone can except: Under 18s Mentally incapacitated Diplomats Directions who act ultra vires Intoxication
What is legality of form
Certain contracts must be drawn up in certain ways
Examples of legality of form
Hire purchase contracts must be in writing
What is Legality of purpose
Legally binding contracts can only be for legal transactions
Example of legality of purpose
A contact over a robber will not be upheld in court
Name 4 ways a contract is terminated
Performance
Agreement
Frustration
Breach
What is performance
When both sides carry out their dirties as under the contract
E.g car transaction- money handed over car received
What is agreement
If the parties involved voluntarily agree to end the contract
E.g. Most employment contracts allow either side to end the contract with one months Notice
What is frustration
If an unforeseen event occurs such as a death or illness and the contract can’t carried out
Eg singer has contract with pub owner but dies beforehand
Wat is a breach of contract
If one person breaks a condition of the contact- essential
Not if someone breaks a warranty- non essential
If a football player misses a training session that is breach of warranty but if he misses a match it’s a breach of condition.
Name 3 Remedies for breach of contract
Damages
Specific performance
Rescind the contract
What are “damages”
The person who broke the contract is ordered by court to pay financial compensation
Eg singer doesn’t show up for a concert she will have to pay for the money lost and inconvenience cause
Example of intention to contract
Family members agreements are not contracts as they have no intention of being- promises.
Business agreements are always contracts - buying a car.
Example of consideration
Supermarket receives your money and you receive your goods
