2 - Contract Law

Flashcards covering key concepts of Contract Law from the lecture notes.

Contract

An exchange of value (often in the form of promises) which the law will enforce.

Purpose of Contract Law

To promote trade and commerce.

Contract Essentials

Key components of a contract: Consensus, Consideration, Intention, Legality, Capacity.

Consideration

Something of value (often promises) exchanged between parties to create a contract.

Valuable Consideration

May consist of rights, interest, profit, or benefit accruing to one party, or detriment, loss, or responsibility of the other. (Currie v. Misa, 1875)

Adequacy of Consideration

The law will not enter into an inquiry as to the adequacy of consideration. (Westlake v. Adams, 1858)

Pre-Existing Legal Duty

A promise or action cannot constitute good consideration if it is something a party is already bound to do.

Promissory Estoppel

A principle that may be part of a cause of action, but not a cause of action in itself.

Detrimental Reliance

Central to promissory estoppel; involves both reliance on a promise and detriment incurred.

Intention to Create Legal Relations

Parties must intend to create a legally binding relationship; determined objectively.

Past Consideration

Past consideration is no consideration, meaning previous actions cannot count as a basis for a new contract.

Contracts for Partial Payment of Debt

These contracts are enforceable despite a lack of consideration due to specific legal provisions.

Proprietary Estoppel

Does not require a pre-existing legal relationship and may serve as a cause of action.

Mutuality in Contracts

A mutual agreement is necessary for a contract; otherwise, the arrangement is non-enforceable.

Variation of Contracts

A variation to an existing contract may be enforceable without fresh consideration, in absence of duress or other legal concerns.