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22 Cards in this Set
- Front
- Back
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Why are contracts important?
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Economic necessity – it is a way of making and having means to enforce agreements
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What are the elements that are required to make a simple contract binding?
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Intention
Capacity Offer Acceptance Certainty of terms Consideration |
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Must contracts be written?
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No, only under statute or formal contracts.
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Can a simple contract be oral?
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Yes
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Must a formal contract be written?
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Yes, and handled in a particular manner.
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What is the presumed intention in social or domestic contexts?
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No intention to be binding.
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What is the presumed intention in commercial contexts?
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Intention to be bound.
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Is an advertisement an invitation to treat or is it an offer?
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Generally an ITT
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What are the ways that a contract can be discharged/terminated?
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Performance
Agreement Frustration Breach Operation at law – eg bankruptcy |
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What are liquidated damages?
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An amount of money that is certain and fixed by some formula. If it is not linked to a formula and is a lump sum it could be a penalty.
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How are ambiguous clauses read by the courts?
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Contra proferentem, construed against the party who would benefit from the clause.
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What is consideration in contract?
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Price (money, property or acts) paid for the others promise. A contract is made between parties exchange promises.
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Is it a requirement of contract formation that a contract is certain and complete?
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Parties must at least reach agreement on all terms that they intend to fix by agreement, otherwise the contract is void and unenforceable.
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What is the difference between a warranty and a condition?
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A condition is major or vital term of a contract that the contract would not have been entered in to but for, where a breach would allow the innocent party to sue for damages or have the contract set aside. A breach of warranty is not central to the contract, so breach will not allow the contract to be put aside.
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Are letters of intent legally binding?
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No, but they can be depending on the wording used. If it is to be binding, all the usual conditions for the formation of contracts need to be present.
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Name some common types of insurance policies that you would find in contracts?
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Public liability
Workers compensation Product liability Works insurance |
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If you receive a ticket or docket that is unsigned or it’s a notice that contains an exclusion clause, what are the three items that are required in order to be bound to the terms of the contract?
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- A reasonable person would assume that it was a contractual document;
- Reasonable steps were taken to give the person to whom the ticket was provided notice of the term; and - These steps were taken before or when the contract was made. |
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What is the purpose of exclusion clauses?
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To exclude or limit liability of the defendant in the event that the defendant causes loss to a plaintiff.
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What are some of the alternative dispute resolution processes?
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Negotiation
Mediation Conciliation Arbitration Determination NMCAD |
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To establish misrepresentation there needs to be at least three items considered, what are they?
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A representation of past or present fact;
That representation needs to be false; and The representee must have been induced to enter into the contract as a result of that representation. |
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What are the three types of misrepresentation?
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Fraudulent
Negligent Innocent |
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What is the key part of ACL relating to misleading or deceptive conduct?
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A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
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