Term
| what are the requirements for a valid contract? |
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Definition
agreement (offer and acceptance)
certainty
consideration
intention to enter into legal relations
formalities |
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Term
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Definition
foundation of a contract
usually constituted by offer and acceptance, however the intention of the parties are crucial |
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Term
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Definition
| the intention of one party to another of her intention to be legally bound |
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Term
| when will what looks like an offer not be an offer |
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Definition
| when the ''offeror'' has no intention of being legally bound, an offer must always include intention |
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Term
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Definition
| offers or claims which are not real, a sales puff is not an offer. distinguishing features include a lack of intention by the offeror and lack of specificity in the offer |
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Term
| what is invitation to treat? |
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Definition
when a seller makes a request to others to make offers or enter negotiations. an invitation to treat is not an offer.
intention? |
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Term
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Definition
boots case established that the display of goods is an invitation to treat, where there is not unlimited stock, errors in pricing, errors in stock.
australian consumer law statute may affect this |
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Term
| are offers of reward for return of goods or information offer or intention to treat |
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Definition
| almost always treated as offers |
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Term
| what is carlill v carbolic smoke ball co ? |
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Definition
| a case which established that monetary offers made to consumers for products that dont work are indeed offers and not an invitation to treat |
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Term
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Definition
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Term
| is a request for tenders an offer? |
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Definition
usually an invitation to others to make offers. may be a standing offer.
depending on the intention of the parties |
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Term
| to whom may an offer be made? |
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Definition
a person
a class of persons
the the world
an offer may only be accepted by the person to whom it is made |
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Term
| does an offer need to be communicated? |
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Definition
| YES! there is a requirement of knowledge. acceptance must be in reliance of the offer. |
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Term
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Definition
| a case establishing a requirement of knowledge |
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Term
| how can an offer be terminated |
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Definition
by revocation, at any time before acceptance
must be communicated to the offeree
rovocation made by same method of communication as the offer |
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Term
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Definition
rejection
lapse of time
by death |
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Term
| is a counter offer a rejection? |
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Definition
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Term
| how must offer and acceptance correspond? |
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Definition
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Term
| what are the rules for the communication of acceptance? |
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Definition
acceptance must be communicated to the offeror
offeror may prescribe method of acceptance
acceptance by silence will generally not bind an offeree |
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Term
| what is the postal acceptance rule |
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Definition
| general rule - offeror needs to receive communication of acceptance. postal acceptance is effective upon posting. |
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Term
| what is an incomplete/indefinate agreement |
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Definition
| where an important part of the bargain has not been agreed to or it is impossible to determine what has been agreed |
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Term
| what are the most common problems with certainty? |
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Definition
problems of indefinateness
problems of incompleteness
open terms
an agreement to agree in the future |
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Term
| what are the consiquences of uncertainty |
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Definition
if the uncertain term is a material and unservable part of the contract, the whole contract will be overturned.
if the contract is devisable the part which is void can be seperated from the rest of the contract and the rest of the contract will remain valid. |
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Term
| will a court enforce an agreement to agree in the future? |
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Definition
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Term
| is there are contract where a promiser has an option or discretion to carry out the purported promise? |
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Definition
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Term
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Definition
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Term
| what are the main points in whitlock v brew? |
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Definition
issues of certainty
(lack of clarity in the wording and terms of the agreement)
• Whitlock (vendor) agrees to sell land to Brew (purchaser) for £165000
• Contract of Sale drawn up and signed by both parties
• Brew paid a deposit of £15600 but then decided to withdraw from the purchase |
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Term
| what was the outcome of whitlock v brew |
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Definition
| contract was held to be uncertain |
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Term
| what is life insurance co australia ltd v phillips? |
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Definition
| Phillips entered into two life insurance agreements. Each agreement provided that the comapny woudl make payments on the death of Phillips or on a specified date (whichever occurred first) in exchange for the payment of premiums. The contracts also provided that Phillips would be entitled to a housing loan after three years. Did this requirement render the contracts unenforceable for uncertainty? |
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Term
| what was the outcome in life insurance co australia ltd v phillips? |
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Definition
| the contract was held, while The entitlement to a housing loan was too vague to be enforced, this could be severed from the remainder of the contract |
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Term
| what is the key issue in loftus v roberts? |
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Definition
| In Loftus v Roberts [1902] 18 TLR 532 CA, the Court of Appeal held that when a contract of employment is made all the key terms must be identifiable or the agreement will not be enforceable. |
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