2489112
Description
Flashcards by muhd.nurul, updated more than 1 year ago
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Created by muhd.nurul
over 9 years ago
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| Question | Answer |
| Contract (Promises) | Promise or a set of promises which the law will enforce |
| Contract (Agreements) | Agreement giving rise to obligations which are enforced or recognised by law |
| Promise | Guarantee that something will be done |
| Agreement | A meeting of minds with the understanding and acceptance of reciprocal legal rights and duties as to particular actions or obligations |
| Contract Formation Requirements | 1) Offer & Acceptance via cons. ad idem 2) Intention to create legal relations 3) Consideration or Deed |
| Contract Formation Qualifiers | 1) Capacity (i.e. not minors/drunk/unsound) 2) Not contrary to public policy 3) All legal formalities to be complied with |
| Consensus Ad Idem | • Meeting of Minds • Objective Test (Clapham omnibus) • Agreement between offer & acceptance |
| Offer | Willingness to contract on specified terms with the intention that, if accepted, it shall become a binding contract |
| Offer vs Invitation to Treat | •Display of goods in not an offer to sell at that price but an invitation to treat • The customer makes the offer at the till which the shop accepts to conclude the contract |
| Acceptance | Unconditional assent communicated by the offeree to the offeror, to all terms of the offer, made with the intention of accepting |
| Consideration | • Law will not enforce a gratuitous promise • Something of value which legitimises the contract |
| Vitiating Factors | • Misrepresentation • Duress • Undue Influence • Certain forms of Mistake |
| Discharge of Contract | • Performance • Agreement • Breach • Frustration |
| Performance (Discharge) | • All parties fulfil their obligations • Precise and exact • Harshness of contracts (severability/substantial performance/partial performance) |
| Agreement and Frustration (Discharge) | • Without fault of either party • Event renders further performance an impossibility |
| Breach of Contract | • Failure to perform • Repudiation [I won't do it] • Any breach that takes place before the time of performance is an anticipatory breach |
| Remedies for Breach | • Losses due to: damages / quantu meruit • Specific Performance • Injunction |
| Measure of Damages | • Expectation Measure: Restore injured party to EXPECTED economic position • Reliance Measure: Restore injured party to INITIAL economic position • Liquidated Ascertained Damanges |
| Remoteness of Damage (Two Limbs) | • 1st Limb: Arising Naturally •2nd Limb: Reasonably in contemplation by both parties |
| Mitigation | Avoidance and management of losses caused by the breach |
| Retrospective Acceptance | Start now, sign contract later |
| Revocation | Choose new vendor / supplier |
| Most prevalent issue in contracts | “parties…conducting their transactions with one another…on the assumption that a contract would ultimately be agreed upon” – as established in Trollope & Colls v Atomic Power Construction. |
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