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Flashcards covering intention, certainty, and formalities in contract law.
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Intention in Contract Law
The intention to create legal obligations, legal relations, or to be bound by an agreement.
Honour Clauses
Clauses in a contract that explicitly state the agreement is not legally binding.
Rose & Frank Co v Crompton (JR) & Bros Ltd
A case illustrating that an agreement explicitly stating it is not a formal or legal agreement will not be legally binding.
Social/Domestic Agreements (Presumption)
The principle that agreements between family and friends are presumed not to be legally binding.
Balfour v Balfour
A case illustrating agreements between family members are presumed not to be legally binding unless rebutted.
Wakeling v Ripley
A case that shows when consequences of an agreement between family members are serious, the parties intended to create a binding and enforceable contract.
Business & Commercial Agreements (Presumption)
The principle that agreements in a commercial context are generally presumed to be binding.
Ermogenous v Greek Orthodox Community of SA Inc
A view of the usefulness of traditional presumptions in determining intention; emphasizes a need to assess all the facts and surrounding circumstances.
Intention
An area of contract law where the court assesses whether the parties to a contract intended that the agreement affect their legal relations.
Certainty in Contract Law
States that a contract must be sufficiently complete, certain, and that the promises must not be illusory.
Completeness (Certainty)
When parties must have agreed to the essential terms of the agreement such as the parties, subject matter, consideration, and nature of the contract.
Certainty of Terms
Terms that must be sufficiently clear and certain within a contract, and capable of a precise meaning.
Illusory Promises
Statements which are not a genuine promise, and are unenforceable.
Best and Reasonable Endeavours
A clause that requires a party acting reasonably, or not to unreasonably refuse something that relates to an agreement with another party.
Agreements to Negotiate in Good Faith
Agreements to agree that will generally be void for uncertainty because courts will not enforce an incomplete agreement.
Rule of Signature
States that if a contract has been signed, then a contract must be read, understood and agreed (regardless).
Formalities (Contracts in Writing)
A contract that is required to be in writing by law where it can only be varied in writing, but terminated orally.
Privity of Contract
The principle that only parties to a contract can enforce or be bound by it.
Third Party Beneficiaries
Individuals who may benefit from a contract but are not parties to it and generally cannot enforce it.
Contractual Capacity
The legal ability to enter into a contract.
Minors and Contracts
Contracts with minors are generally voidable, except for necessities and beneficial contracts of service.
Necessities (Contract Law)
Essential items or services for a minor's survival and well-being, such as food, clothing, and shelter.
Beneficial Contracts of Service
Contracts that benefit a minor, such as employment or apprenticeship agreements, which are generally enforceable.
Mental Capacity and Contracts
A contract may be voidable if one party lacks the mental capacity to understand the nature and consequences of the agreement.
Intoxication and Contracts
A contract may be voidable if one party is so intoxicated that they do not understand the nature of the agreement, and the other party is aware of their condition.
Legality of Object
The purpose or object of a contract must be legal for it to be enforceable.
Contracts Illegal by Statute
Contracts that violate a law are illegal and unenforceable.
Contracts Illegal at Common Law
Contracts that are contrary to public policy are illegal and unenforceable.
Restraint of Trade
Agreements that restrict a person's ability to carry on a business or profession, which may be void unless reasonable.
Reasonableness in Restraint of Trade
A test to determine if a restraint of trade clause is enforceable, considering the geographic scope, duration, and legitimate interest being protected.