Requirements of A Contract

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Intention (domestic/commercial ageements)
The intention of both parties to make a contract (must be communicated)
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Consideration
Giving a benefit or suffering a loss. Both if exchange of something occurs - payment is loss, but received good is gain
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Executory consideration
A promise to do something in the future e.g.by carrying out an action required by a unilateral offer you will fulfill your liability under the contract
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Sufficiency of consideration
The consideration needs to be sufficient not adequate (of the same sum value as the other parties consideration) because it would be impossible for courts to attach values to different goods and services
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Privity of contract
Contract is private between the offeror and the oferee - no other person can become liable under the contract or sue to enforce it
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Performing an existing duty
1) Duty imposed by law - not good consideration. 2) duty arose under previous contract w. a different person - a person can give same consideration to two different people 3) Duty arose under previous contract
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Part payment of deficit
A debt is extinguished by paying it in full or by accord & satisfaction (agreement and consideration)
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Pinnel's Case (1602)
Rule that payment of a lesser sum of money on the date when a greater sum is due cannot be consideration for the greater sum owed
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Promissory Estoppel
Where, by words or conduct a person makes an unambiguous representation as to his future conduct intending the repres. to be relied on. If the representee relies on his altered position the representor will be unable to act inconsistently w. the rep.
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Promissory Estoppel (def.)
An equitable dctrine which will prevent a claimant from breaking a promise, not to insist on his strict legal rights if promise was intended for legal relations. If claimant knew promise would be acted upon, and defendant did act upon it.
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Minors
MInors must pay reasonable price for necessary service. Can make a contract that is overall beneficial to him/her
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Drunkard
contract voidable if person did not know he was making it (whilst the person who he made it with was aware)
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Contracts that must be in writing
Disposition of land, consumer credit agreements, guarantee contracts
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Other cards in this set

Card 2

Front

Giving a benefit or suffering a loss. Both if exchange of something occurs - payment is loss, but received good is gain

Back

Consideration

Card 3

Front

A promise to do something in the future e.g.by carrying out an action required by a unilateral offer you will fulfill your liability under the contract

Back

Preview of the back of card 3

Card 4

Front

The consideration needs to be sufficient not adequate (of the same sum value as the other parties consideration) because it would be impossible for courts to attach values to different goods and services

Back

Preview of the back of card 4

Card 5

Front

Contract is private between the offeror and the oferee - no other person can become liable under the contract or sue to enforce it

Back

Preview of the back of card 5
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