Contract Law Overview Quiz
24 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is a core element of a contract?

  • Offer (correct)
  • Termination
  • Negotiation
  • Amendment

What does the mirror image rule refer to in contract law?

  • Acceptance must exactly match the offer. (correct)
  • Counteroffers are considered valid acceptances.
  • Offers can be altered during negotiation.
  • Rejection of an offer can lead to a new offer.

What is required for consideration to be valid in a contract?

  • It must be verbal rather than written.
  • It must be from a third party.
  • It must have sufficient value. (correct)
  • It must be future-oriented.

Which type of contract is characterized by a promise for a promise?

<p>Bilateral contract (B)</p> Signup and view all the answers

Under what condition can a promise not to enforce contractual rights be made without consideration?

<p>Under promissory estoppel. (B)</p> Signup and view all the answers

What does the Contract (Rights of Third Parties) Act 1999 primarily address?

<p>It permits third parties to enforce contractual rights under certain conditions. (B)</p> Signup and view all the answers

Which of the following is presumed to not be legally binding?

<p>A social agreement among friends (B)</p> Signup and view all the answers

In terms of capacity to contract, which of the following individuals may have limitations?

<p>Those under the influence of drugs (A)</p> Signup and view all the answers

Under what condition may a minor be ordered to transfer property acquired from a contract?

<p>If it is just and equitable to do so (B)</p> Signup and view all the answers

What is required for a contract to be voidable due to mental incapacity?

<p>The individual must be unaware of the nature of the contract (D)</p> Signup and view all the answers

What does the Contracts (Rights of Third Parties) Act 1999 allow?

<p>Third parties can enforce certain rights if expressly stated in the contract (A)</p> Signup and view all the answers

Which of the following is NOT a reason why third parties generally cannot acquire rights under a contract?

<p>There is no writing required for the contract (D)</p> Signup and view all the answers

In terms of necessaries, what must a minor who has entered a contract provide?

<p>A reasonable price for the necessaries provided (C)</p> Signup and view all the answers

What does mental incapacity refer to in the context of contract law?

<p>The individual’s inability to make a decision regarding the contract (D)</p> Signup and view all the answers

Which aspect of mental incapacity must be demonstrated to void a contract?

<p>Inability to understand relevant information (C)</p> Signup and view all the answers

What is the key purpose of consideration in contract law?

<p>To establish a legal basis for parties to enter a contract (B)</p> Signup and view all the answers

What is a collateral contract?

<p>A secondary agreement between the promisor and a third party that allows the third party to sue. (D)</p> Signup and view all the answers

Under which condition can a third party enforce a contract according to the Contracts (Rights of Third Parties) Act 1999?

<p>They must be identified as a third party and benefit from a term of the contract. (B)</p> Signup and view all the answers

What was the outcome of the case Tweddle v Atkinson?

<p>The claim was rejected because the groom did not provide consideration. (C)</p> Signup and view all the answers

Which of the following best describes 'consideration' in the context of contracts?

<p>An element that makes a contract legally binding, such as a promise or payment. (D)</p> Signup and view all the answers

Which scenario illustrates a situation where third-party rights might be exercised?

<p>An executor seeks damages on behalf of beneficiaries affected by a contract. (D)</p> Signup and view all the answers

According to the legal principles, which aspect prevents a third party from enforcing a contract?

<p>When the third party did not provide consideration for the promise. (C)</p> Signup and view all the answers

How does the Contracts (Rights of Third Parties) Act 1999 limit third-party rights?

<p>It prevents contracts from being enforced against third parties. (A)</p> Signup and view all the answers

What is a typical remedy available for a third party when a contract they benefit from is breached?

<p>Compensation for loss of benefits and expenses incurred. (D)</p> Signup and view all the answers

Flashcards

Collateral Contract

A separate contract arising between a promisor and a third party, enabling the third party to sue in contract.

Third-Party Rights (Common Law)

Limited ways for a third party to gain remedies. Rights can be exercised under another role (executor), contract allows recovery for third party.

Contracts (Rights of Third Parties) Act 1999

Law allowing enforcement of contract terms by a third party who benefits from the contract & identified.

Tweddle v Atkinson (1861)

Landmark case where the court ruled a third party couldn't enforce a contract they weren't a part of.

Signup and view all the flashcards

Consideration

Something of value exchanged between parties to a contract to make it legally binding.

Signup and view all the flashcards

Third Party (Contract Law)

Someone who is not a direct party to a contract, but might potentially gain a benefit or suffer a loss.

Signup and view all the flashcards

Contract Enforcement (against 3rd party)

Contracts cannot be enforced against third parties under the Act

Signup and view all the flashcards

Contract Party

A person who is formally involved in the agreement of a contract.

Signup and view all the flashcards

Offer

A specific, comprehensive proposal with acceptance potential.

Signup and view all the flashcards

Acceptance

A complete, unconditional agreement to the offer ("mirror image").

Signup and view all the flashcards

Consideration

Something valuable exchanged as part of a contract.

Signup and view all the flashcards

Intention to Create Legal Relations

The parties' serious intent to enter a legally binding contract.

Signup and view all the flashcards

Capacity

Legal ability to enter enforceable contracts, like age of majority.

Signup and view all the flashcards

Privity of Contract

Only parties to a contract can sue or be sued under it.

Signup and view all the flashcards

Contract (Rights of Third Parties) Act 1999

Legislation allowing some third parties to enforce contractual rights.

Signup and view all the flashcards

Invitation to Treat

An expression of willingness to deal/negotiate, not an offer.

Signup and view all the flashcards

Minor's unenforceable contract

A contract a minor enters into is not legally binding against them.

Signup and view all the flashcards

Substance Abuse Impact

Substance abuse can make a contract voidable if the person isn't aware of their actions, and the other party is aware of this.

Signup and view all the flashcards

Necessaries for Minors/Incapacitated

Minors or those with mental incapacity must pay for goods/services necessary for their life.

Signup and view all the flashcards

Mental Incapacity (Contract Law)

A state where a person lacks the mental capacity to understand and make a contract.

Signup and view all the flashcards

Mental Capacity Act 2005

Law defining what counts as mental incapacity in making contracts.

Signup and view all the flashcards

Privity of Contract (Common Law)

Third parties cannot directly enforce or be bound by contracts they are not part of.

Signup and view all the flashcards

Contracts (Rights of Third Parties) Act 1999

Legislation allowing certain third parties to enforce or be bound by a contract, even if they are not a party to it.

Signup and view all the flashcards

Transfer of Property (Minors)

A minor can be ordered to return property if it is legally fair to do so when a contract is unenforceable.

Signup and view all the flashcards

Study Notes

Contract Law

  • This document is a practice guide for students
  • It's not a comprehensive statement of the law or practice
  • Professional advice should be sought if needed
  • Copyright 2024, used under license from the copyright owners
  • Reproduced by the College of Legal Practice
  • Published in the United Kingdom
  • July 2024

Formation

  • Offers need to be specific, comprehensive, and capable of acceptance (offeror/offeree)
  • Opening negotiations can be confused with invitations to treat
  • Invitations to treat are not offers
  • Acceptance is when an offer is communicated/reciprocated by the other party(s)
  • Adverts are usually invitations to treat.
  • This is an objective (reasonable person's perspective) test.

Acceptance

  • Acceptance must exactly match the offer (mirror image rule)
  • Acceptance occurs when communicated, unless specified otherwise
  • Silence is not acceptance
  • Postal rule applies in certain situations

Revocation of an Offer

  • Effective when communicated
  • Communication can come from an authorized third party if reliable
  • Offers have time periods and revocation before the end is possible if communicated

Consideration

  • Defined as 'some benefit, interest, profit or responsibility"
  • Must be sufficient (but not necessarily adequate), meaning it has value (money or a service-type exchange)
  • Past consideration is not enough

Exceptions to the Past Consideration rule

  • There are exceptions/additional situations where act, benefit, payment, or service can be considered as valid consideration, and does count.

Formation Additional Issues

  • Certainty: clear and unambiguous terms required
  • Formalities: certain contracts need to be in formal written (or deed) forms for enforcement
  • Contract by deed: specific requirements for execution and delivery
  • Contractual duty: duty owed to a third party or a party can be seen as valid consideration

Privity of contract

  • Only parties to a contract can enforce it, or assume liability, against the other parties.
  • Exceptions (Third Party Rights): The Contracts (Rights of Third Parties) Act 1999
  • Presumptions in different contexts (social/domestic vs. commercial)

Mental incapacity and minors

  • Minors and those with mental incapacity have limited contractual capacity.

Terms

  • Express terms: explicitly stated in the agreement
  • Implied terms (statutory and custom): terms automatically included in a contract
  • Interpretation of terms (conditions, warranties, and innominate terms)
  • Exclusion clauses: clauses designed to limit/exclude liability (interpretation and effectiveness important)

Variation of terms

  • Changes to contract terms.

Unfair Terms

  • The Unfair Contract Terms Act 1977 (UCTA) and the Consumer Rights Act 2015 (CRA).
  • Consumer protections in relation to contract terms.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

GDL Contract Manual PDF

Description

Test your knowledge of Contract Law with this comprehensive quiz. Explore key concepts such as formation, acceptance, and revocation of offers. Ideal for students seeking to deepen their understanding of legal principles in the context of contracts.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser