Review of the Law of Contract

This set of flashcards covers fundamental concepts in contract law including definitions, principles, and case law examples to assist in exam preparation.

What is a contract?

A legally enforceable agreement between two or more parties.

What are the essential elements required for a contract to be legally enforceable?

There must be intention to create legal relations, parties must be legally capable, the contract must be legal, and there must be consideration.

What does 'invitation to treat' mean in the context of contract law?

An invitation for others to make an offer; it is not an offer itself.

What is the main difference between contract law and tort law?

Contracts involve voluntary agreements where parties choose their obligations, while torts are obligations imposed by law.

What are some examples of torts?

Defamation, nuisance, and negligence.

When is a written contract required?

For contracts related to the disposition of land or contracts of guarantee, as specified in the Property Law Act 2007.

What happens to an offer if it is revoked?

The offer is no longer available for acceptance and cannot be accepted once revoked.

What is consideration in contract law?

A mutual exchange of something of value between parties to a contract.

What is a unilateral contract?

A contract where one party makes a promise in exchange for the performance of an act by another party.

What is the significance of the 'postal rule'?

Acceptance is effective once the letter of acceptance is posted, even if it is delayed or lost.

How can acceptance be communicated?

Acceptance must typically be communicated to the offeror, but can be implied through conduct in unilateral contracts.

What factors indicate intention to create legal relations in a contract?

The context of the agreement, the nature of the exchange, and whether the agreement is made in a commercial or domestic setting.

What is the legal consequence of making an agreement 'subject to contract'?

Such wording indicates that the parties do not intend to be legally bound until a formal contract is executed.

What role does capacity play in contract formation?

Parties must have the legal capability to enter into a contract; for example, minors and individuals with mental incapacity have limitations.

In contract law, what happens if something illegal is included in the contract?

The contract is rendered void and unenforceable.

What is an auction, and how does it relate to contracts?

An auction involves multiple bids on goods or services, where bids can be rescinded before acceptance; it creates a contract upon the winning bid.

What should you consider when evaluating a valid offer?

An offer must contain clear and certain terms, showing the offeror's willingness to be bound.

What is the general rule regarding counter-offers?

A counter-offer terminates the original offer and presents a new offer.

How does one accept an offer in contract law?

Acceptance must mirror the offer without introducing new terms and can only be made by the intended offeree.

What does it mean when a contract is voidable?

The contract is valid unless the party with the right to void it chooses to do so.