what is a contract Flashcards
what is a contract?
Defined as:
“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
what happens if someone breaks the contract?
“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.”
MacQueen and Thomson, para 1.10
What is an onerous contract?
It’s a typical contract where both parties exchange obligations, e.g. goods for payment or work for salary.
What is a gratuitous contract?
A contract where only one party performs, and the other receives something without giving anything in return.
what is a promise?
A promise is a unilateral, gratuitous obligation where only one party undertakes to perform, without needing acceptance by the beneficiary.
How is a promise different from a gratuitous contract?
A promise requires only one party’s intention to be bound, while a gratuitous contract still requires agreement by both parties.
What makes a promise legally binding?
The promisor must clearly intend to create a binding obligation and express that intention in definite terms.
What did Morton’s Trs v Aged Christian Friend Society establish about promises?
A promise is binding if it reflects a final intention to be obliged, not just a vague or probable intention.
What intention must a promisor have for a promise to be binding?
The promisor must have a final and definite intention to be legally bound by the obligation.
How must the promisor express their intention?
The intention must be expressed clearly using definite language; vague statements are not sufficient.
Can a promise be conditional?
Yes—a promise can be made conditional on some future event, but only the promisor is bound by it, not the promisee.
