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Questions and Answers
What three key elements are required for a promise to be enforceable as a contract?
What three key elements are required for a promise to be enforceable as a contract?
- Agreement, legality, and capacity.
- Agreement, consideration, and intention to create legal relations. (correct)
- Offer, acceptance, and written documentation.
- Consideration, fairness, and good faith.
In the context of contract law, what is 'consideration'?
In the context of contract law, what is 'consideration'?
- The financial cost associated with drafting a contract.
- The act of carefully thinking about the terms of the agreement.
- The emotional state of mind of a party entering into an agreement.
- The mutual exchange of something that the law regards as having value. (correct)
What differentiates a unilateral contract from a bilateral contract?
What differentiates a unilateral contract from a bilateral contract?
- A unilateral contract involves only one party, while a bilateral contract involves two.
- A unilateral contract is more easily enforceable in court than a bilateral contract.
- A unilateral contract is an exchange of a promise for an act, while a bilateral contract is an exchange of promises. (correct)
- A unilateral contract must be in writing, while a bilateral contract can be oral.
The 'objective theory of agreement' suggests that the legal effect of parties' words and actions is determined by:
The 'objective theory of agreement' suggests that the legal effect of parties' words and actions is determined by:
According to the ruling in Centrovincial Estates v Merchant Investors Assurance Co, what happens when an offeror makes an offer under a mistake, but the offeree is unaware of the mistake and provides good consideration?
According to the ruling in Centrovincial Estates v Merchant Investors Assurance Co, what happens when an offeror makes an offer under a mistake, but the offeree is unaware of the mistake and provides good consideration?
The 'snapping up' doctrine prevents an offeree from:
The 'snapping up' doctrine prevents an offeree from:
In Hartog v Collins and Shields, what principle regarding contractual offers was reinforced?
In Hartog v Collins and Shields, what principle regarding contractual offers was reinforced?
According to Longley v PPB Entertainments, does the 'snapping up' doctrine apply if the offeree does NOT know that the offeror was mistaken?
According to Longley v PPB Entertainments, does the 'snapping up' doctrine apply if the offeree does NOT know that the offeror was mistaken?
In Scriven Bros v Hindley, the court inferred that the offeree was aware of the offeror's mistake because:
In Scriven Bros v Hindley, the court inferred that the offeree was aware of the offeror's mistake because:
What circumstance might allow a court to infer that an offeree was aware of an offeror’s mistake per the ‘snapping up’ principle even if the offeree claims they were not actually aware of it?
What circumstance might allow a court to infer that an offeree was aware of an offeror’s mistake per the ‘snapping up’ principle even if the offeree claims they were not actually aware of it?
Flashcards
Law of Contract
Law of Contract
A contract is an agreement enforceable by law, requiring elements like offer, acceptance, and consideration.
Agreement
Agreement
An agreement formed through a matching offer and acceptance of the terms.
Objective Theory of Agreement
Objective Theory of Agreement
The objective theory assesses the legal effect of words/actions based on what a reasonable person would infer, not subjective intentions.
Snapping Up Doctrine
Snapping Up Doctrine
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Consideration
Consideration
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Unilateral Contract
Unilateral Contract
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Study Notes
- Contract law outlines the conditions under which promises become legally enforceable.
- For a promise to be enforceable, it must contain specific contractual elements.
- These elements include agreement (offer and acceptance), consideration (exchange of value), and intent to create legal relations.
- Valid communication of acceptance necessitates consideration and intent to create legal relations.
- Unilateral contracts involve exchanging a promise for an act, like offering a reward for lost property.
What is an Offer?
- The objective theory of agreement states that the legal impact of actions is determined by reasonable inference, not subjective intentions.
- The objective theory is highlighted in Smith v Hughes (1871).
- Objective assessment of parties is used to determine a contract's binding nature based on both their words/actions and agreement on key terms.
- A valid offer arises, and the offeror is bound, when an offer stems from a mistake unknown to the offeree, given good consideration (Centrovincial Estates v Merchant Investors Assurance Co).
- The "snapping up" doctrine is an exception to the objective approach, considering the offeree's subjective knowledge.
- The snapping up doctrine states that an offeree cannot accept an offer knowing it contains a mistake regarding its terms (Hartog v Collins and Shields).
- The snapping up doctrine applies only when the offeree knows of the offeror's mistake, according to Hartog v Collins and Shields.
- The snapping up doctrine does not apply if the offeree wasn't aware of the offeror's mistake, per Longley v PPB Entertainments.
- In situations where the offeree should have been aware of the offeror's mistake, such as in Scriven Bros v Hindley, the court may infer that the offeree was aware of the mistake.
- An offeror's carelessness inducing a mistake, like in Scriven Bros v Hindley, could lead the court to deduce the offeree's awareness, invoking the 'snapping up' principle.
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