Contract Law and Consumer Protection Vocabulary

A complete glossary of key terms and legislation relating to Contract Law and the Australian Consumer Law as covered in the lecture notes.

Breach

A broken rule or promise.

Breach of Contract

Occurs when a contract term is violated, such as a builder failing to fulfill a promise to install a door.

Capacity

A person's ability to understand their legal obligations in a contract; lack of capacity due to age or mental incapacity prevents a contract from being binding.

Caveat Emptor

A Latin phrase meaning "Buyer beware," suggesting that buyers should examine property before making a purchase.

Clause

A specific written term contained within a contract.

Conditions

The fundamental terms of a contract that are essential for its validity.

Consumer

Defined by the Australian Consumer Law as a person purchasing goods or services under the price of $\$40,000$, or purchasing certain higher-priced items intended for personal use.

Exemption Clause

A clause that limits one party's obligations or releases them from liability, such as signage stating a car park owner is not responsible for vehicle damage.

Formalities

The legal requirements, stemming from the Statute of Frauds, that certain types of contracts must be documented in writing.

Illegal

A term describing contracts that violate the law, such as those involving the sale of stolen goods.

Intention

The requirement that both parties must agree that the contract is to be legally binding.

Invitation to Treat

A prompt for negotiations rather than a firm offer, such as price tags displayed in retail stores.

Misrepresentation

A false statement made by one party to induce another party to enter into a contract.

Mutuality

The principle that both parties must understand and agree to the contract, applying to both parties or neither.

Necessaries

Essentials required for a minor’s health or survival; contracts involving these items are often binding for minors.

Ratification

The confirmation that a contract is valid and legally binding once it has been signed.

Remedy

Compensation awarded to one party for loss or damage resulting from a breach by the other party.

Representation

Statements made prior to a contract that may influence it but are not considered formal contract terms.

Repudiation

The action of one party renouncing their obligations, signaling a potential breach of the contract.

Revocation

The cancellation of a contract, rendering it unenforceable.

Valid

A term for a legitimate contract that is legally enforceable.

Void

A contract that cannot be enforced because it is missing one or more essential elements.

Warranties

Non-essential terms of a contract; a breach of these does not void the contract but may entitle a party to compensation.

Australian Consumer Law (ACL)

A portion of the Competition and Consumer Act 2010 designed to protect consumer contracts and ensure fair trade practice.

S54 of the ACL

The guarantee that goods must be of acceptable quality.

S56 of the ACL

The guarantee that goods must conform to the description provided by the seller.

S57 of the ACL

The guarantee that goods must match the sample provided.

S55 of the ACL

The guarantee that goods must be fit for their intended purpose.

S51 of the ACL

The guarantee that the seller has a clear title to the goods.

S59 of the ACL

The guarantee regarding an express warranty about the quality of goods.

S58 of the ACL

The guarantee regarding the availability of spare parts and facilities for repairs.

Services Guarantees (S60-62)

Guarantees that services are delivered with due skill and care, are fit for purpose, and are supplied within a reasonable time.

ACL Guarantee Exclusions

Certain contracts not covered by ACL guarantees, specifically insurance and business-related transport or storage.

Fair Work Act 2009 (Cth)

Legislation that establishes guidelines for employment contracts and the National Employment Standards for minimum employment conditions.