review slides

• What is a contract?

  An agreement which parties choose to enter
• What are the key components of a contract?

  Both sides give some benefit to the other
• What is the formula for forming a contract?

  Offer + Acceptance = Agreement
• How can an offer be made?

  In writing, orally, or by conduct
• To whom can you make an offer?

  Individuals, groups, or anyone willing to accept
• When is an offer not considered an offer?

  When essential terms are too vague or it's an invitation to treat
• What is an example of an invitation to treat?

  Adverts for auctions and invitations to bid
• What is a unilateral contract?

  Only one party makes a promise
• When can offers be revoked?

  Anytime before acceptance
• What happens if an offeree communicates rejection of an offer?

  It terminates the original offer
• What is acceptance in contract law?

  An unqualified expression of assent to the terms
• How must acceptance be communicated?

  It must be communicated to the offeror
• When is acceptance communicated by post?

  When the letter of acceptance is posted
• What is the 'cooling off' period in consumer contracts?

  A 7-day period to cancel the contract
• What is the objective test for intention to create legal relations?

  Would reasonable people regard it as binding?
• What is the presumption in social and domestic agreements?

  Parties did not intend to create legal relations
• What is consideration in contract law?

  The giving of a benefit or suffering a loss
• What is sufficient consideration?

  Some recognisable economic value
• What is the rule regarding part payment of debts?

  Payment of a lesser sum cannot satisfy a greater debt
• What is promissory estoppel?

  A promise relied upon without consideration
• What defines the terms of a contract?

  The obligations and promises contained in the contract
• What distinguishes express terms from implied terms?

  Express terms are specifically agreed upon
• What are representations in contract law?

  Statements of fact that do not form part of the contract
• How do courts determine if a statement is a term or representation?

  By the apparent intentions of the parties
• What factors do courts consider regarding the parties' knowledge?

  Relative degree of the parties' knowledge
• What happens when the offeree agrees to the terms proposed by the offeror?

  They become contractually binding.
• What is a term in a contract?

  A promise or undertaking part of the contract.
• How are representations different from terms?

  Representations are statements of fact not part of the contract.
• What are sales puffs?

  Exaggerated or non-factual statements.
• How do courts determine if a statement is a term or a representation?

  By assessing the apparent intentions of the parties.
• What indicates a statement is likely to be a term?

  If the parties intended it to be contractually binding.
• What does a reasonable person infer about a statement that is not intended to be part of the contract?

  It is likely a representation.
• What factors do courts consider regarding the intention of parties?

  Knowledge, importance, and timing of the statement.
• How does the relative knowledge of parties affect the classification of statements?

  More knowledgeable parties' statements are likely terms.
• What case illustrates that statements by knowledgeable parties are likely terms?

  Dick Bentley Prods v Harold Smith Motors.
• What case shows that statements by less knowledgeable parties are likely representations?

  Oscar Chess v Williams.
• What indicates that a statement is likely to be a term based on its importance?

  If a party emphasizes its importance.
• What case supports the idea that important statements are likely terms?

  Bannerman v White.
• How does the timing of a statement affect its classification?

  Immediate statements are more likely terms.
• What case illustrates that timing can affect whether a statement is a term?

  Routledge v McKay.