Contract Law Essentials

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What happens when a term in an agreement is meaningless?

The contract becomes voidable

The court will create an agreement between the parties

The contract is null and void

The term is ignored, leaving the contract as a whole enforceable (correct)

What is necessary for an agreement to be considered complete?

An agreement on the mechanism to fix the price, but not the price

An agreement on the price, but not the mechanism to fix the price

An agreement on both the price and the mechanism to fix the price (correct)

An agreement on all the minor elements of the contract

What is the court's approach when parties have not reached an agreement on essential elements of a bargain?

The court will enforce the agreement as it is

There is no contract, as there is no agreement on all the essential elements (correct)

The court will imply terms to make the agreement complete

The court will create an agreement between the parties

What is the purpose of determining the usage in a trade in the context of contractual agreements?

To determine the meaning of a vague or uncertain term Signup and view all the answers

What is the result when courts find that the terms of an agreement are uncertain or vague?

The court will not find a contract exists Signup and view all the answers

What is the term for an agreement that lacks a crucial element, such as price?

Incomplete agreement Signup and view all the answers

What is required for an agreement to be considered a contract?

Both a and b Signup and view all the answers

What happens if an important term in an agreement is not settled?

The agreement is not a contract Signup and view all the answers

What is the court's role in interpreting contracts?

To interpret the terms of the contract Signup and view all the answers

What is the underlying rationale for requiring certainty of terms?

To prevent the court from imposing contracts upon the parties Signup and view all the answers

When will a statement not be considered an offer?

When it is not sufficiently certain Signup and view all the answers

What did Viscount Maugham explain in the Scammell v Ouston case?

That the terms of the contract were uncertain Signup and view all the answers

What is the third requirement for the establishment of a contract?

Intention to create legal relations Signup and view all the answers

What is a rebuttable presumption in the context of contracts?

A conclusion drawn by the courts unless the opposite is proved Signup and view all the answers

What must the terms of an agreement be in order to form a valid contract?

Certain and not vague Signup and view all the answers

In what context is the intention to create legal relations often inferred?

In commercial agreements between businesses Signup and view all the answers

What must an agreement be in order to be considered complete?

Complete and not in need of further clarification Signup and view all the answers

What is necessary for courts to recognise an agreement as an enforceable contract?

The presence of all the basic requirements and the absence of vitiating elements Signup and view all the answers