Law of Contract I in Tanzania - Vocabulary Flashcards

Vocabulary flashcards covering core terms, concepts, classifications, and principles from Law of Contract I in Tanzania.

Offer

An unequivocal and clear manifestation by one party of its intention to contract with another (Section 2(1) of the Law of Contract Act [Cap 345 R.E. 2002]).

Unequivocal

Clear, definite, and without doubt.

Invitation to Treat

A mere invitation by a party to another or others to make offers or bargains, where the invitee becomes the offeror and the invitor becomes the offeree.

Acceptance

The external manifestation of assent by the offeree to the terms of a proposal (Section 2(1)(b) of LCA).

Revocation

The withdrawal of an offer by the offeror before acceptance is complete (Section 6(1) of LCA).

Consideration

An act or promise offered by one party and accepted by the other party as the price for that other's promise (Section 2(1)(d) of LCA).

Estoppel

A doctrine stating that where parties in a legal relationship make a new promise intended to affect legal relations and be relied upon, once relied upon and the position is changed, the maker cannot claim their legal relationship was different.

Conditions

A term of major stipulation in a contract; breach entitles the innocent party to treat the contract as repudiated and to sue in damages.

Warranties

A minor term of a contract or a term of minor stipulation; breach entitles the innocent party to sue in damages only while the contract remains enforceable.

Merchantable Quality

Fit to be offered for sale and reasonably fit for the buyer's required purposes.

Privity of Contract

A doctrine establishing that only a person who is a party to a contract can sue or be sued on it.

Void Contract

A contract that lacks legal force or validity ab initio and creates no legal rights or obligations (Section 2(1)(g) & (j) of LCA).

Voidable Contract

A valid contract that contains a defect in substance or formation, allowing one or both parties to rescind it (Section 2(1)(i) of LCA).

Valid Contract

A contract enforced by law that creates legal rights and obligations, containing agreement, intention, and consideration ab initio.

Unenforceable Contract

An otherwise valid contract containing a substantive, technical, or procedural defect (such as offending public policy or statute) that prevents court enforcement.

Illegal Contract

An agreement that goes beyond basic public policy, is criminal or immoral in nature, and generally contains an unlawful object and consideration (Section 23 of LCA).

Express Contract

A contract in which the terms are stated by the parties in words, spoken or written (Section 9 of LCA).

Implied Contract

A contract whose terms are inferred from the circumstances of the case or the conduct of the parties rather than made in words.

Quasi Contract (Constructive Contract)

An obligation created by law regardless of an agreement between parties, based on equitable principles to prevent unjust enrichment (Sections 68-72 of LCA).

Unilateral Contract

A one-sided contract in which one party has performed their obligation while the other party has yet to perform theirs, exchanging a promise for an act.

Bilateral Contract

A two-sided contract in which both parties have yet to perform their respective obligations at formation, exchanging a promise for a promise.

Executory Contract

A contract in which the promises of both parties have yet to be performed in the future.

Executed Contract

A contract in which both parties have completely performed their respective promises.

Formal Contracts

Contracts recognized under English law whose validity depends upon their form (such as contracts under seal or contracts of record) and are valid even without consideration.

Simple Contracts

All contracts other than formal contracts, which may be oral or written and require consideration for their validity.

Customary Contracts

Contracts regulated or governed by customary law, applicable in Tanzania by virtue of Section 11(1) of the Judicature and Application of Laws Act [Cap 358 RE 2002].

Consensus ad idem

Meeting of two minds; agreement between the contracting parties as defined under Section 2(1)(e) of LCA.

Cross Offers

A situation where two parties dispatch identical offers to each other that cross in communication, creating no agreement due to lack of consensus.

Counter Offer

A change, variation, or modification of the terms of the original offer by the offeree, acting as a rejection of the original offer and terminating it.

Standing Offer

An offer arising when a tender to supply goods or services over time is accepted, binding the offeror to supply upon any specific requisition made by the offeree.

Option

An agreement between an offeror and offeree supported by consideration, by which the offeror agrees to keep an offer open for a specified duration.

Mirror Image Rule

The legal requirement that an acceptance must match and reflect the exact terms of the offer without any condition or variation.

Postal Rule of Acceptance

A common law rule stating that acceptance is complete and a binding contract is formed as soon as the letter of acceptance is posted.

Doctrine of Promissory Estoppel

An equitable doctrine (Rule in the High Trees Case) preventing a promisor from enforcing original legal rights after making a new promise that the promisee relied upon to their detriment.

Ultra Vires

Acts or transactions beyond the legal or corporate powers of a company or statutory entity, which are null, void, and incapable of ratification.

Jus Quaesitum Tertio

The right of a third party to enforce a contract to which he or she is not an original contracting party.

Innominate Terms

Contractual terms categorized as neither conditions nor warranties, whose remedies depend on the nature and gravity of the consequences of breach.

Contra Proferentem Rule

A rule of interpretation under which ambiguous or vague contractual terms are interpreted restrictively against the party relying on them.

Exemption Clause

A clause inserted into a contract by one party exempting itself from liability or limiting the extent of liability arising under the contract.