Contract Law

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Definition of a contract
A contract is an agreement giving rise to obligations which are enforced and recognised by law
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Four essential elements
Intention to create legal relations; Offer; Acceptance; and Consideration
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Agreement
Consists of an offer and acceptance
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Offer
Is an expression of willingness (person showing that they are willing to enter into a contract) to contract on certain terms with the intention that it shall become binding upon acceptance
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Acceptance
The final and unqualified assent to all terms of an offer (all terms must be accepted) (cannot come back with a counter offer)
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Mirror Image Rule
The acceptance must 'mirror' the offer. You must accept exactly what is being offered
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Bilateral Contract
Both parties have obligations to fulfill
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Unilateral Contract
One party to the contract has an obligation to fulfill( 'If' contracts)
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Doctrine of Privity of Contract (set of rules/principles)
This is the common law rule that says that only the parties to a contract can sue or be sued on it
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Statutory (rules) (Acts of Parliament) Exception to the Rule of Privity of Contract: Contracts (Right of Third Parties Act 1999)
A person who is not a party to a contract may enforce a term if the contract expressly provides that they may. The Third Party must be expressly identified in the contract by name, as a member of a class or as answering a particular description.
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Statutory (rules) (Acts of Parliament) Exception to the Rule of Privity of Contract: Contracts (Right of Third Parties Act 1999) cont..
The Parties must intend that a Third Party can sue and it can only confer a benefit and not a detriment
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Rebuttable Presumptions (ITCLR)
Business contracts - ITCLR always; and Social and Domestic contracts - No ITCLR - no intention
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In business agreements, the presumption is that there is an Intention to Create Legal Relations
Edmonds v Lawson 2000
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Rebutting the presumption in commercial situations including:
'Mere Puffs' - Sales Talk; and Honour Clauses - where the contract states binding in 'honour only' (not intention to be legally binding (Rose & Frank v J R Crompton 1923)
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Rebutting the presumption in Social and Domestic Agreements (Jones v Paddavatton 1968):
Domestic Situations - Separation/Divorce - (Merritt v Merritt 1970)
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Rebutting the presumption in Social and Domestic Agreements (Jones v Paddavatton 1968):
Social Situations - Where a practical benefit has been obtained or a party is at a disadvantage; where there is a mutuality in the arrangements such that the intention to share the benefits, or a party at a disadvantage (Simpkins v Pays 1955)
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Consideration
Is the 'bargain' of the contract - something in value in the eyes of the law
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Consideration
defined as a benefit to one party and a detriment to the other (Currie v Misa 1875)
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Consideration
Price paid for the person's promise (Dunlop Pneumatic Tyre Co Ltd v Selfridge 1915)
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Consideration - Promisor make the Promisee
In Bilateral Contracts both Parties promise to do something
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Acceptance - Final
Negotiations have finished
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Acceptance - Unqualified
No conditions attached to the acceptance
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Acceptance - Assent
Full agreement
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Acceptance - All
Have to agree to everything (by the end) any new terms will revoke the offer (counter-offer)
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Other cards in this set

Card 2

Front

Intention to create legal relations; Offer; Acceptance; and Consideration

Back

Four essential elements

Card 3

Front

Consists of an offer and acceptance

Back

Preview of the back of card 3

Card 4

Front

Is an expression of willingness (person showing that they are willing to enter into a contract) to contract on certain terms with the intention that it shall become binding upon acceptance

Back

Preview of the back of card 4

Card 5

Front

The final and unqualified assent to all terms of an offer (all terms must be accepted) (cannot come back with a counter offer)

Back

Preview of the back of card 5
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