Contract Law

Question 1

Requirements for a contract (3)

Answer 1

1. Parties in Agreement
2. Intention to be legally bound
3. Consideration

Question 2

Requirements of a valid offer (3)

Answer 2

1. Parties prepared to enter into agreement
2. Terms sufficiently certain
3. Offer is communicated

Question 3

Common communication that aren’t offers (2)

Answer 3

1. Request for information
2. Invitation to treat

Question 4

Method of accepting a unilateral contract

Answer 4

Action

Question 5

Types of termination (4)

Answer 5

1. Revocation
2. Rejection
3. Passage of Time
4. Operation of Law

Question 6

Acceptance in a bilateral contract (3)

Answer 6

1. Performance
2. Promise to Perform
3. Offers to Enter into Bilateral Contract

Question 7

Exceptions to Postal Rule for Acceptance (3)

Answer 7

1. Letter not properly addressed and stamped
2. Not reasonable to accept the offer by post
3. Rule has been excluded by the offeror

Question 8

Presumption for Rebutting (Legal Intention) (2)

Answer 8

1. Domestic Family Situations
2. Social Situations

Question 9

Types of capacity categories that may not enter into contract (3)

Answer 9

1. Minors (always voidable)
2. Mental Incapacity (may be voidable)
3. Intoxication

Question 10

Consideration must be

Answer 10

Sufficient but need not be adequate

Question 11

Illusory consideration

Answer 11

Too vague and hard to enforce

Question 12

Insufficient consideration

Answer 12

Performance of an existing duty

Question 13

Agency

Answer 13

Principal gets agent to enter contract on behalf

Question 14

Assignment

Answer 14

Contract is made, benefit of contract assigned to someone else

Question 15

Conditions

Answer 15

Something that has to happen before the obligation can take effect

Question 16

Warranties

Answer 16

Less important terms

Question 17

Innominate terms

Answer 17

Can’t tell from the contract if it is a condition of warranty

Question 18

Express Terms

Answer 18

Parties have reasonable notice of it

Question 19

Ways terms can be implied

Answer 19

1. Statute
2. Courts
3. Customs and Usage
4. Dealings between Parties

Question 20

Exclusion Clause

Answer 20

Term in the contract that one of party is not going to be liable in the breach, or only up to a certain amount

Question 21

Three methods of incorporation (3)

Answer 21

1. By signature
2. By notice
3. By custom or course of dealing

Question 22

Contra proferentum rule

Answer 22

Against the exclusion if its ambigous

Question 23

Exclusions that are void (2)

Answer 23

1. Excluding liability of death or injury by negligence
2. Exclusion of one of the condition implied by sale of goods 1999

Question 24

Voidable under Consumer Rights Act 2015 (3)

Answer 24

1. Prohibited terms are unenforceable
2. Unfair terms
3. Terms must be transparent and legible

Question 25

Vitiating Factors that make contract void (2)

Answer 25

1. Mistake 2. Illegality

Question 26

Vitiating Factors that make contract voidable (4)

Answer 26

1. Capacity 2. Duress 3. Undue Influence 4. Misrepresentation

Question 27

Types of mistake (4)

Answer 27

1. Common mistake 2. Mutual mistake 3. Unilateral mistake 4. Mistaken identity

Question 28

Types of duress (3)

Answer 28

1. Duress of the Person 2. Duress of the Goods 3. Economic Duress

Question 29

Types of undue influence (3)

Answer 29

1. Actual 2. Presumed 3. Third Party

Question 30

Types of misrepresentation (3)

Answer 30

1. Fraudulent 2. Innocent 3. Negligent

Question 31

Discharge by Breach

Answer 31

Breach of condition or innominate terms

Question 32

Discharge by Frustration

Answer 32

Unforeseen events stops contract from being performed or makes contract radically different to contract

Question 33

Equitable Remedies (2)

Answer 33

1. Specific Performance 2. Injunction

Question 34

Restitutionary Remedies available when: (4)

Answer 34

1. Person has been enriched or benefitted 2. Enrichment at the expense of the other party 3. Enrichment is unjust 4. There are no defences

Question 35

Damages for (3)

Answer 35

1. Expectation Interest 2. Reliance Interest 3. Loss of Amenity