Contract law

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4 Terms

1
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Subjective test

When a non mistaken party intends to take advantage of a non mistenken party

Used when trying to find the intentions

Used in exceptional circumstances

Used when the objective test doesn’t work

2
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Objective test

The most common used when trying to find the intentions

Used when finding the true intention is irrelevant

Any reasonable person can see the true intent of the parties involved

3
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4 elements to a contract

  1. Offer

  2. Acceptance

  3. Intention to create legal relations

  4. Consideration

(Offer + acceptance) + intention + consideration = valid contract

4
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What are the 2 principles behind ‘intentions to create legal relations’ ?

Principle 1: The law assumes that, unless proved otherwise, those entering into a social or domestic agreement do NOT have the intention to create legal relations

Principle 2: The law assumes that, unless proved otherwise, those entering into a social or domestic agreement DO have the intention to create legal relations