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34 Cards in this Set
- Front
- Back
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Agreement
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There is agreement when one party (the offeror) makes an offer which the other party (the offeree) accepts.
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An Offer
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A clear statement of terms on which the offeror intends to be bound.
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Contract
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A promise or a set of promises which the law will enforce
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What are the 6 requirements of a valid contract?
Hint: A,C,C,I,F,L |
1. Agreement
2. Consideration 3. Capacity 4. Intention to create legal relations 5. Form 6. Legality |
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Who can be involved in an agreement?
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Can be made to a specified person, a group of people or the general public
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Invitation of Treat
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Where one party holds him/herself out as being ready to receive offers which s/he may then accept or reject
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Invitation of Treat is where one party holds themselves out to receive an offer which they may accept or reject.
Give 3 examples of Invitation of Treat: (try and state case study related in the answer |
1. Bidding at an auction
2. Display of good in a shop window* 3.Advertisment (including ads on email and www pages)** *Fisher v Bell or Pharmaceutical Society of Great Britain Ltd v Boots **In a Bi-lateral contract - invitation of treat = Partridge v Crittenden In a Unilateral contract - considered as a offer instead of a invitation of treat = Carlill v Carbolic Smokeball Co |
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How can an offer be terminated?
6 Answers |
An offer can be terminated by -
1. Acceptance 2. Revocation 3. Rejection ad counter-offer 4. Lapse of Time 5. Death 6. Non - fulfilment of a condition |
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Complete sentence...
Where the parties carry on a long process of negotiation, it may be difficult......, particularly when parties |
Where the parties carry on a long process of negotiation, it may be difficult to pinpoint when an offer has been accepted and a contract formed. Particularly when parties trade exchanging their own standard forms.
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Termination of an offer: Acceptance
What is the general rule for acceptance? |
Acceptance is effective when it is communicated.
The offeror may lay down a specified method of acceptance. In Writing. Verbal acceptance is only effective when heard! |
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What is the postal rule acceptance?
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Acceptance also take place as soon as the letter is posted.
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Give one case example where the postal rule acceptance can be excluded.
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Holwell Securities v Hughes
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What regulates the internet sales?
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The Electronic Commerce (EC Directive) Regulations 2002
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Revocation is another way for a agreement to be terminated. What is Revocation?
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When an offer may be withdrawn.
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Revocation is when an offer may be withdrawn. Explain the difference in revocation in a bilateral contract and a unilateral contract.
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Bilateral Contract - When the offer may be withdrawn at ANY TIME before acceptance unless there is an agreement to keep the offer open.
Unilateral Contract - Withdraw before the offeree has began to accept. |
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Rejection and Counter-offer
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An offer is rejected if offeree notifies the offeror that s/he does not wish to accept the offer. A counter offer will also reject the original offer.
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Lapse of Time
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Where a time limit is put on an offer, it will lapse when the time limit expires. If there is no time limit, it will lapse after a reasonable period of time.
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Conditional Contracts
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Is certain conditions have to be satisfied before it becomes legally binding. Where a contract is conditional, the date of disposal of any asset is the date all the conditions are satisfied.
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Consideration
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the price you pay for a contract
each party must give or do/not do something for the other party. |
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Unilateral Contract
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When one party offers the contract, a opened contract
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Bilateral Contract
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When both parties are involved.
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What is the general rule for consideration?
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Consideration must be given by the party seeking to enforce the contract.t
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Consideration MUST NOT BE ....
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....illegal
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Consideration must be of some economic value but...
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need not be value for money.
Chappell and Co v Nestle |
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When is it be seen as a consideration when it is a performance of an performance of an existing legal duty?
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when the offeree does more than s/he is legally obliged to do.
Collins v Godefroy |
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Performance of an exsiting contractual cuty will not amount to consideration unless...
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the offeree does more than s/he is contractual bound to do.
William v Roffey Bros |
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What is the special rule which applies to part payment of debts?
Part payment is not sufficient consideration |
Pinnels Case
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Explain Pinnels Case
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A promise by creditor to accept less than full sum owned does not discharge the debtor from legal obligation to pay the balance.
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What are the exception for Pinnels case?
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1. dispute claims
2.Unliquidated claims 3.Composition agreements with creditors 4. Payment of the debt by a 3rd party 5. Promissory Estoppel |
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What is Promissory Estoppel?
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A equitable doctrine which provides that where one party to a contract promise that s/he will not enforce their strict legal rights under the contract they may be prevented from going back on that promise if it would be unfair for them to do so.
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What are three things needed for promissory estoppel to apply?
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1. existing relationship
2. a promise 3. reliance on the promise by promisee. |
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What is Combe v Combe quote?
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A Shield and not a Sword
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Capacity
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Generally anyone has the capacity to enter into a contract but there are some categories of persons whose power to enter into contracts is limited by law.
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What are the four capacity?
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1. Contract made by persons suffering mental incapacity or drunkness
2. Capacity of minors 3. Capacity of companies 4. Capacity of partners |
