Section C
Outline the rule governing intention to create legal relations in a social/domestic agreement
Uses presumptions - assume something unless given evidence to the contrary.
The presumption for social/domestic agreements is such that the agreement is NOT intended to be legally binding.
E.g. Balfour Vs. Balfour (1919)
Outline the remedies of specific performance
An equitable remedy and order of the court that requires a party of the contract to perform a specific act under the contract. Granted where damages are inadequate. Suitable when subject matter is unique
Outline the remedies of rescission
One party wants to have the contract set aside, to be returned to original position. Usually granted when contact was entered into due to mistake, misrepresentation, fraud or undue influence.
Explain innominate term
Neither a condition or a warranty. The remedy depends on the seriousness of the consequences of the breach. Instead of defining, decide in the event of the breach by examining how serious it is.
Explain injunctions
A court order ordering a party to perform or not to perform a certain act. Will not be used where damages could provide adequate remedy as purpose of injunction is to prevent a harm from occurring,
Explain rectification as a remedy.
Order to change a written document so that it reflects the true agreement between the parties.
Correction of a mistake in a document to reflect the parties’ true intentions.
Explain the receipt rule
When communication of acceptance is shared in an instantaneous method. E.g, Fax, telephone. Acceptance takes effect once it is received.
Explain the postal rule
Special rule for postal acceptance. Once acceptance is posted, acceptance is complete & contract is concluded, not at date or time it is received.
Even if lost in post, unless application is excluded
Adams Vs. Lindsell (1818)
Letter must be properly stamped, addressed and posted.
Explain the rule on past consideration
Consideration must not have been provided prior to the agreement. Past consideration cannot support a promise.
Explain the rule on consideration provided by promise
Consideration must be given by a party to the contract.
Privity of Contract: Only a party to a contract can sue to enforce it - any party not contributing to the contract is not involved in consideration.
Explain the rule on sufficient consideration.
Consideration must be sufficient (have some economic value) but need not be adequate. Anything of economic value is considered good consideration, however courts are not concerned
Explain separate legal personality
Once a company is registered, it has a separate legal existence from its members. The company is at law a different person altogether from its members.
What is corporate governance?
Members are the people who have bought shares and have their name on the Register of Members. They usually delegate control and day-to-day to directors. Directors are less likely to be concerned with someone else’s money. System of checks and balances which aims to ensure that directors discharge their accountability to the company and all its stakeholders.
What is joint and several liability
Joint liability is where the partners are collectively responsible for the debt.
Several liability means 1 partner can be held liable and made to repay the debt, they can later claim contribution from the other partners.