Law of Contract Flashcards

Flashcards for Law of Contract lecture review.

What is Animus Contrahendi?

The goal to create a legally binding contract with enforceable obligations.

What is the definition of a contract?

An agreement which creates legally binding obligations.

What is Consensus in contract law?

Meeting of the minds.

What is Capacity in contract law?

Party must have the capacity to enter into agreement

What is Legality in contract law?

The purpose of the contract must be legal.

What is Possibility in contract law?

It must be possible to meet the obligations to create a valid contract.

What is Certainty in contract law?

The content of the agreement must be ascertainable.

What does Ius in personam mean?

Personal right.

What does Ius in rem mean?

Real right.

What is the key difference between contract and delict regarding obligations?

Obligation under contract is voluntary, while obligation under delict is imposed by law.

What is the outcome of breaching a contract vs. committing a delict?

Contract leads to legal responsibility, if breached will lead to damages and compensation; Delict, wrongful act leading to damages and compensation.

What is Enrichment in relation to the Law of Obligations?

Where one person is enriched to the detriment of another, but without a valid cause.

What is a Real Roman Law contract?

Agreement + delivery

What is a Verbal Roman Law contract?

Prescribed + formal words

What does Pacta sunt servanda mean?

Accepted that as a matter of good faith, all serious agreements should be enforced.

What is Actual/Subjective Agreement?

Intend to contract, Be of one mind, or truly understand and agree, Parties must communicate, express their will and reach agreement.

What is Apparent/Objective Agreement?

Where it appears that consensus has been reached but due to misunderstanding or misrepresentation.

What is Will Theory of Contract?

States that contract gives effect to will of parties, if there is no consensus, then no contract.

What is Declaration Theory of Contract?

Intention of the parties irrelevant, just what they expressed in the contract.

What is Reliance Theory of Contract?

Relies on the reasonable belief that consensus has been reached, through actions of the other party.

What are the cornerstones of contract?

Freedom of contract, Sanctity of contract, Good faith, Privity of contract.

What is Freedom of Contract?

Parties can decide with whom they contract and the terms.

What is Sanctity of Contract?

If entered into seriously, must be upheld.

What is Good Faith in contract law?

Parties must act honestly and fairly

What is Privity of Contract?

Only binding between the parties

What is Freedom and Sanctity of Contract?

Contract is the result of choice; if contract is valid, it should be upheld.

What were the Two questions from Barkhuizen v Napier?

Is the clause so unreasonable as to be counter to public policy? and Should it be enforced in light of circumstances preventing compliance?

What is Dual Basis of Contract in South African law?

Always start with consensus, but where one party led the other to believe that consensus was reached, reasonable reliance must succeed.