Intro: Contracts

Vocabulary flashcards covering the core concepts of introductory contract law, types of contracts, written requirements, and referenced legal cases.

Contracts

Legally binding and enforceable in court agreements between two or more parties that require an exchange, and may be oral, written, or inferred from conduct.

Standard form contracts

Contracts that involve no negotiation and have predetermined and pre-agreed terms.

Purpose of Contract Law

To protect the weaker party.

Pernod Ricard & Comrie PLC v FII (Fyffes plc) 1988

A case establishing that a verbal offer for purchasing multi-million pounds worth of shares is still valid.

Contracts required to be in writing

Credit Contracts (details on payment etc) and Transfer of Land (record of ownership).

Bilateral Contract

A type of contract where all parties make promises and have obligations.

Unilateral Contract

A type of contract where just one party makes promises and has an obligation, such as in reward cases (lost dog) or sending money back in marketing.

Collateral Contract

A contract where consideration is entry into another contract.

De Lasselle v Guildford (1901)

A collateral contract case involving the same parties, where due to a drain problem the lease was not paid, and the court held that the collateral contract must be completed then rent will be paid.

Shanklin Pier v Detel Products Ltd (1951)

A collateral contract case involving different parties, where Shanklin specified Detel paint for pier painting, the paint peeled, and the court ruled a collateral contract existed despite Detel claiming no contract.