Podcast
Questions and Answers
What is the primary difference between a 'condition' and a 'warranty' in contract law?
What is the primary difference between a 'condition' and a 'warranty' in contract law?
- A warranty allows the aggrieved party to terminate the contract and claim damages, while a condition only allows for damages.
- A condition allows the aggrieved party to terminate the contract and claim damages, while a warranty only allows for damages. (correct)
- A condition is determined by the price of the contract, while a warranty is not.
- A warranty is determined by the price of the contract, while a condition is not.
If a party breaches a warranty in a contract, the aggrieved party always has the option to terminate the contract.
If a party breaches a warranty in a contract, the aggrieved party always has the option to terminate the contract.
False (B)
In the case of Poussard v. Spiers and Pond, what type of term was the actress's promise to perform from the first night considered to be?
In the case of Poussard v. Spiers and Pond, what type of term was the actress's promise to perform from the first night considered to be?
a condition
A 'condition ________' must occur or be fulfilled before an obligation or right created by the contact can be enforced.
A 'condition ________' must occur or be fulfilled before an obligation or right created by the contact can be enforced.
Match the case to the outcome:
Match the case to the outcome:
In deciding whether a term is a condition or a warranty, what do courts primarily consider?
In deciding whether a term is a condition or a warranty, what do courts primarily consider?
If an event is classified as a condition subsequent, it must occur before the contract is created.
If an event is classified as a condition subsequent, it must occur before the contract is created.
In Bettini v. Gye, why was the singer's failure to attend all rehearsals not grounds for terminating the contract?
In Bettini v. Gye, why was the singer's failure to attend all rehearsals not grounds for terminating the contract?
Which of the following best describes the doctrine of privity of contract?
Which of the following best describes the doctrine of privity of contract?
According to the doctrine of privity of contract, a third party beneficiary can always sue to enforce a contract made for their benefit.
According to the doctrine of privity of contract, a third party beneficiary can always sue to enforce a contract made for their benefit.
In the case of Dunlop v. Selfridge, why was Dunlop unable to successfully sue Selfridge for breaching the agreement regarding the resale price of tyres?
In the case of Dunlop v. Selfridge, why was Dunlop unable to successfully sue Selfridge for breaching the agreement regarding the resale price of tyres?
Under the law of __________, if A makes a contract with B while acting as C's agent, C can enforce the contract with B.
Under the law of __________, if A makes a contract with B while acting as C's agent, C can enforce the contract with B.
Which of the following scenarios is an exception to the doctrine of privity of contract?
Which of the following scenarios is an exception to the doctrine of privity of contract?
Privity of estate is a concept that applies to personal property rather than real property.
Privity of estate is a concept that applies to personal property rather than real property.
What is a covenant in the context of real property law?
What is a covenant in the context of real property law?
Match the concept with its description
Match the concept with its description
In the case of Read v. Dean, what was the primary reason the defendant was held liable for the plaintiff's injuries?
In the case of Read v. Dean, what was the primary reason the defendant was held liable for the plaintiff's injuries?
Customary terms in a contract are legally binding, even if not explicitly written in the contract itself.
Customary terms in a contract are legally binding, even if not explicitly written in the contract itself.
What is the key difference between an exemption clause and a limiting clause in a contract?
What is the key difference between an exemption clause and a limiting clause in a contract?
In Hutton v. Warren, the court considered local __________ to determine the obligations of a tenant regarding farming practices and allowances.
In Hutton v. Warren, the court considered local __________ to determine the obligations of a tenant regarding farming practices and allowances.
Statutory implied terms in contracts are derived from:
Statutory implied terms in contracts are derived from:
Match the following legal concepts with their descriptions:
Match the following legal concepts with their descriptions:
What is a potential issue that arises from the use of exemption clauses, especially in standard form contracts?
What is a potential issue that arises from the use of exemption clauses, especially in standard form contracts?
If a contract does not explicitly mention the safety of a rented property, there is no implied assumption that the property should be safe for use.
If a contract does not explicitly mention the safety of a rented property, there is no implied assumption that the property should be safe for use.
Flashcards
Conditions
Conditions
Terms of major importance; breach allows for contract repudiation.
Warranties
Warranties
Terms of minor importance; breach allows for damages only.
Aggrieved Party
Aggrieved Party
The party whose rights have been violated in a contract.
Repudiation
Repudiation
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Affirmation
Affirmation
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Condition Precedent
Condition Precedent
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Poussard v. Spiers and Pond
Poussard v. Spiers and Pond
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Bettini v. Gye
Bettini v. Gye
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Privity of Contract
Privity of Contract
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Dunlop v. Selfridge
Dunlop v. Selfridge
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Stranger to Contract
Stranger to Contract
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Agency
Agency
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Privity of Estate
Privity of Estate
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Liquidated Damages
Liquidated Damages
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Covenant
Covenant
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Contractual Rights Enforcement
Contractual Rights Enforcement
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Implied Terms
Implied Terms
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Read v. Dean
Read v. Dean
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Customual Terms
Customual Terms
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Hutton v. Warren
Hutton v. Warren
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Implied By Statute
Implied By Statute
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Exemption Clause
Exemption Clause
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Limiting Clause
Limiting Clause
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Standard Form Contracts
Standard Form Contracts
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Study Notes
The Law of Contract
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A contract is a legally binding agreement between parties. A breach may result in a civil action.
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Contracts can be classified as formal (under seal) or informal (simple contracts).
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Formal contracts are written and signed, often with a seal. They are also known as deeds.
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Informal Contracts are not under seal; they can be written or oral. Some informal contracts must be in writing to be enforceable, such as contracts for the sale of land.
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Express contracts are stated clearly in distinct terms.
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Implied contracts are inferred via actions of the parties without written agreement.
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Bilateral contracts involve mutual promises from both parties.
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Multilateral contracts have multiple parties exchanging mutual promises.
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A severable contract is one that is divisible into parts, with each part enforceable when performed.
Requirements for a Valid Contract
- A valid contract requires a firm offer, definite acceptance, valuable consideration, intent to create legal relations, capacity to enter into contracts and a lawful object.
Offer
- An offer is a clear, definite proposal by one party (offeror) to another (offeree) to enter a contract under specific terms. It needs to be definite, certain, and unequivocal to be capable of acceptance.
- The offeror must be liable to be bound if terms are accepted.
- The offer must be communicated to the offeree.
Offer vs. Invitation to Treat
- An invitation to treat is a preliminary step in negotiations, not a definite offer. Examples include display of goods in a shop window, advertisements, auctions, tenders, etc.
- If someone accepts an invitation to treat, they have made an offer to purchase goods, service or contract.
Termination of Offers
- An offer can be terminated by revocation, rejection, lapse of time, counter-offer, death or incapacity (of the offeror or offeree).
Acceptance
- Acceptance is the unqualified agreement to the terms of an offer by the offeree.
- Communication of the acceptance to the offeror is essential for a binding contract to be formed.
Consideration
- Consideration is the price paid by one party for the promise of the other. It must be sufficient but not necessarily adequate—meaning it is a something of value.
- Consideration must move from the promisee (the party making the promise).
Capacity
- Legal capacity is the ability of parties to enter contracts.
- Infants (persons below a certain age) may lack capacity, or have limited capacity.
- Persons of unsound mind may have reduced or no capacity.
Lawful Object
- A contract's object must be lawful (not illegal or contrary to public policy).
Vitiating Factors
- Vitiating factors are circumstances that may render a contract voidable or void. These factors include misrepresentation, duress, undue influence, and mistake.
- Any contract that contains a vitiating factor may be deemed voidable at the discretion of the injured party.
Discharge of Contracts
- A contract is discharged when the parties are no longer bound by its terms. This can happen through performance, agreement, breach, or frustration (an unforeseen event that makes performance impossible or illegal).
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Description
Explore the nuances of contract law, focusing on the distinction between conditions and warranties. Understand their impact on contract termination and enforcement. Key cases like Poussard v. Spiers and Pond and Bettini v. Gye are also covered.
