Legal Studies Contract Law Practice Flashcards

Comprehensive flashcards covering the key concepts of Contract Law, including elements of a contract, terms, misrepresentation, exclusion clauses, and factors affecting enforceability.

According to the transcript, what is the definition of Contract Law?

The body of law that provides for the creation, performance and terminations of duties voluntarily assumed by legal actors in relation to other legal actors.

What are the three legitimate functions of Contract Law?

1. To specify which agreements are legally enforceable. 2. To define the rights and duties/obligations created by enforceable but otherwise ambiguous agreements. 3. To indicate the consequences of an unexcused breach of contract.

In legal terms, how is a 'contract' defined?

A legally enforceable agreement, whether it be written or spoken.

What are the three essential elements required for an agreement to be considered a contract?

1. An agreement in existence between the parties (Offer and Acceptance). 2. Intention for the agreement to be legally binding. 3. Support by consideration (money).

What is a 'condition' in the context of contract terms?

A core term that is essential to the purpose of a contract; a breach allows the non-breaching party to repudiate the contract or claim damages.

How does a 'warranty' differ from a 'condition'?

A warranty is a secondary or collateral term that supports the main contract but isn't central to its purpose; its breach only entitles the party to compensatory damages, not termination.

What factors are considered to determine if there was an 'intention to be legally binding'?

What was agreed upon, the words used by the parties, the effect of the agreement on the parties, and whether the parties acted as though the agreement was binding after it was made.

What is an 'invitation to treat'?

An expression of a willingness to negotiate, also known as an 'invitation to offer'. Examples include most advertisements and price tags.

What does the 'postal-acceptance rule' state?

If acceptance is made by mail, the acceptance is deemed to have taken place as soon as the letter has been posted.

What are the three specific 'non-examples' or rules regarding what cannot be valid consideration?

1. Consideration cannot be something that occurred in the past. 2. Consideration cannot be unlawful. 3. There is no requirement for consideration to be adequate.

How are 'puffs' defined in contract law?

Exaggerated comments about a product that no reasonable person would believe.

Define 'misrepresentation' and name its three forms.

A false term made in a contract designed to persuade the plaintiff to agree to the terms. The three forms are Innocent, Negligent, and Deliberate or Fraudulent Misrepresentation.

What four elements must exist for a representation to amount to misrepresentation?

1. False representation of an existing or past fact. 2. Addressed to the plaintiff. 3. Made before or when the contract is signed. 4. Intended to persuade the plaintiff to enter the contract.

What is an 'exclusion clause'?

A provision in a contract that limits or excludes one party's liability in the event of a breach of contract or negligence.

What are the requirements for an exclusion clause to be valid and relied upon?

It must be in a contractual document, the party must be made aware of it before entering the contract, and reasonably sufficient notice of the clause must be given.

What are the two elements of 'unconscionable conduct'?

1. One party is at a legal disadvantage (e.g., elderly, disability, or no understanding of law). 2. The other party takes advantage of this disadvantage to get a benefit.

Describe the difference between 'duress' and 'undue influence'.

Duress involves signing under unfair pressure or threat, while undue influence involves someone strongly influencing another (often in family or loving relationships) so the person hasn't really agreed.

What is 'frustration' in contract law?

When events occur after a contract is signed that fundamentally change the nature of the contract without either party being at fault (e.g., a hired hall burning down).

What is 'capacity' and who might lack it according to the notes?

The legal ability to look after one's own interests and understand the consequences of signing an agreement; those who lack it may include minors, bankrupts, jailed criminals, or foreign citizens.