Written Contracts and their requirements: Chapter 8 Flashcards
(17 cards)
Can a contract consist of more than one document?
Yes, a contract can be made up of more than one document.
What is the parol evidence rule?
It prohibits verbal testimony that supplements, changes, or contradicts the terms of a written contract.
Is there an exception to the parol evidence rule?
Yes, if the contract doesn’t reflect the true intention of the parties, verbal evidence is allowed for rectification.
What must the deed of alienation contain?
All essentialia and any terms raised or implied in negotiations that the parties deem material.
What happens if a material term is missing or incomplete?
The contract is void.
How do you determine if a term is material?
Ask:
(a) Did the parties consider the term?
(b) Did they agree it would be part of the contract and binding?
Must the deed contain information about termination rights?
Yes, it must include the buyer’s right to terminate under section 29A of the Alienation of Land Act or the Consumer Protection Act (if applicable).
Can a deed of alienation be concluded electronically (e.g., email or SMS)?
No, it cannot be concluded via electronic means.
What must the contract clearly define regarding the thing sold?
The subject of the sale must be determinable from the contract itself, without external (parol) evidence.
What happens if the object of the sale can’t be clearly identified?
The contract is null and void.
What must the deed of alienation state regarding the purchase price?
The amount, method, and time of payment.
What if the price is payable in instalments?
The contract must state the amount, payment intervals, and due dates.
Is it valid if material terms like price or payment method are left open for future negotiation?
No, such a contract is invalid.
What must be clear about the parties in a deed of alienation?
Both buyer and seller must be identifiable, and any other person’s capacity must be clearly described.
What must happen if a substantial term in a deed of alienation is altered?
The alteration must comply with the same statutory formalities as the original contract.
What is the result of failing to comply with formalities for alterations?
The altered contract is null and void.
Must termination or reinstatement of a deed of alienation comply with statutory formalities?
No, these can be done verbally.
