Contract

• what is a contract

  A contract is a legally enforaceable ahgreement between two or more legal distinct parties (crossan 2017
• what is needed to make a valid contract

  offer + acceptance = contract
• what is a unilateral promise

  a promise made by one party in which the receving party needs to do nothing to cash in
• what type of contracts need to be in writing


  land and buildings, wills, unilateral promises
• what must an offer be

  precise and definite
• what is an invitation to treat


  not a formal offer but rather a invitation to have a conversation about the possibility of an offer
• is an advert an offer


  they are not called as offers as they cannot be accepted - exception in carbolic smokeball which was an offer to the world at large
• what is a counter offer and what is its impact

  when a parties makes an offer back to the offeror, this makes the original offer expire immediately
• when does an offer lapse

  • implied or expressed revocation
  • offer is rejected
  • if either party loses capacity
  • when a set time limit expires
  • if the offer has not been accepted within a reasonable time limit
  • if some condition is not satisfied
• when is an offer formed

  when acceptance is communicated to the offeror - again there are exceptions such as carbolic smokeball

  
  

  silence cannot be taken as acceptance and the offeree must ensure that the offeror has received and understood that the offer has been accepted
• what are the general rules for contracting by post

  1. a contract is deemed to exist from the moment an acceptance is posted by the acceptor not when it is received by the offeror
  2. revocation of an offer must reach the offeree before the acceptance is posted
  3. revocation of an acceptance must reach the offeror before or at the sae time as the original letter of acceptance reaches the offeror
• what are the five features of a valid contract

  1. consensus of idem
  2. consent - must be full free and voluntary
  3. capacity
  4. formal requirements when when apply
  5. not prohibited by law
• what is an exclusion clause and is it allowed

  an exclusion clause is part of the contract that limits or excludes liability. where an exclusion clause is printed on a ticket is should be where a reasonable person might expect and must bring the conditions to the notice of the contracting party
• rules for contracts

  1. conditions must be clear at the time the contract is formed and new terms cannot be introduced after contract is formed
  2. all terms must be included at the place where the contract is formed
  3. a term will only be upheld if it is fair and reasonable
  4. a clause that attempts to limit responsibility for death will be void
• when is a contract terminated

  • performance - both parties fill obligations
  • payment
  • prescription - after certain amount of time has passed
  • acceptation - mutual agreement to end before full perforamnce has been compelted
  • confusion
  • compensation
  • delegation - new person to pay debts
  • novation - new obligation subbed for old one
  • frustration - impossible to perform or illegal
• what is termination of contract

  a breach of contract occurs when any party to a valid contract doesn't perform their obligations without a justified reason
• what types of contract breach are there

  • anticipatory breach - x informs y he no longer wants to carry out duties
  • failure to perform
  • delayed performance - could be more detrimental if there is small time frame
  • unsatisfactory performance
• when there is an error in the contract what are the main questions

  1. how serious is the error
  2. how was the error caused
  3. how many of the contracting parties have been mistaken
• what is a substantial's error

  essential error relating to subject of contract the identity, the price, the nature of the contract

  this error voids the contract
• what is a concomitants error


  all other errors, this leave the contract valid or voidable
• what is a mutual bilateral error

  both parties make non identical error
• common bilateral error


  both parties make same mistake
• unilateral error


  one party has made a mistake
• what are the possible results when there is an error in the contract

  void, voidable and valid

  voidable is a valid contract until one party takes actions to have it cancelled
• what is capacity


  capable of assuming legally binding obligations, in terms of age insanity or intoxication (Crossan)