Contract Law Section A - Definitions & Answers

  • Created by: launa07
  • Created on: 28-12-15 13:34
What is a contract?
a contract is an agreement which gives rise to obligations & which is enforced by the Law
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what are the essential requirements of a contract ?
Agreement,Consideration & intention to create legal relations
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what is a offer?
An offer is a statement or proposition made by one party showing a willingness or intention to be legally bound as soon as the other party agrees
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what is an invitation to treat ?
An invitation to treat is simply a request by someone to open up negotiations or discussions which lead to an offer being made
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what is a unilateral offer ?
a contract where only one party promises to do something.The other party makes no promises but performs an act in return for the other parties promise
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what is a bilateral offer?
it is a contract where BOTH parties promise to do something for the other and are bound together from that precise moment in time
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What is an acceptance?
is the final and unqualified assent to all the terms of the offer,there is no contract until the offer is accepted
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what is consideration ?
"a price paid for a promise made"
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what is Executory consideration ?
consideration is executory when there is an exchange of promises to perform acts in the future.
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what is Executed consideration ?
consideration is executed when a promise i made in exchange for an act.When the act is performed it becomes Executed.
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what is Privity of contract ?
privity of contract states, only the parties to a contract are bound by it.
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what is a mere puff?
a mere puff is extravagant sales talk.
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what are representations ?
pre contractual statements that are intended to persuade the other party to enter into the contract but which are not actually part of the contract
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what is a term in a contract?
A term is important statements which are incorporated into the contract and go to the very heart of the contract
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what is an Express Term?
Terms which have been agreed and which are fully known by the parties a the time the contract is made .
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what is an Implied Term
Terms which are not contained in a contract or agreed but which will be read into the contract by the court,custom or state.
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what are conditions?
Conditions are a term which are of vital land fundamental importance nd go to the very core of the contract.If broken then it entitles innocent party to rescind the contract or sue for damages
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what are warranties?
Terms which are still important but not so fundamental & which if broken only allow damages to be claimed.
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what are Intermediate/ Innominate terms ?
Terms which do not fall into the definition of conditions or warranties will be classed as Innominate terms.
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what is Misrepresentation?
An untrue statement of factor law,made by one contracting party to another,which is intended to induce a party into the contract and does actually serve to induce that party.
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what is Fraudulent Misrepresentation?
A knowingly false statement is made or the statement is not believed to be true.
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what is Negligent Misrepresentation?
when a person does not have reasonable grounds to believe the statement made is true .
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what is Innocent Misrepresentation?
A statement which is neither fraudulent or negligent.A false statement made by someone who had reasonable grounds for believing it to be true.
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what is Frustration ?
An unforeseen circumstance which arises after the contract has been made which then prevents it from being carried out without the fault of either party.
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what is damages ?
A common law remedy which consists in the court making a monetary payment in favour of the other party
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what is the measure of damages ?
To place the innocent party in the position as if the contract had been performed.
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what is the basis of claiming damages ?
A)breach caused the loss , B)the loss was not too remote, C)mitigation has taken place.
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what is causation?
Breach that has occurred must actually cause the loss that is complained of.
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what is remoteness?
such losses will only be recoverable as a reasonable person would have anticipated as being a likely or natural consequence resulting from the breach complained of and for any other losses that he was warned about at the time of the contract.
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what is mitigation of loss ?
An innocent party must seek to keep their losses to a minimum and cannot seek to claim for loss that was reasonably avoidable.
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what is specific performance?
An equitable court order telling a party in breach of contract that he must do that which he has stated he will contractually do.
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what is an injunction ?
An equitable court order instructing a party not to do something.
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Card 2


what are the essential requirements of a contract ?


Agreement,Consideration & intention to create legal relations

Card 3


what is a offer?


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Card 4


what is an invitation to treat ?


Preview of the front of card 4

Card 5


what is a unilateral offer ?


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