Podcast
Questions and Answers
A ______ is a legal and lawful agreement, enforceable by law, with specific terms between two or more people or entities.
A ______ is a legal and lawful agreement, enforceable by law, with specific terms between two or more people or entities.
contract
A contract involves a ______ to do something in return for a valuable benefit.
A contract involves a ______ to do something in return for a valuable benefit.
promise
The ______ might fail to work appropriately or keep to the expected schedule.
The ______ might fail to work appropriately or keep to the expected schedule.
employee
The ______ might provide a good or service that doesn't meet the buyer's expectations.
The ______ might provide a good or service that doesn't meet the buyer's expectations.
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______ conditions apply to all contracts.
______ conditions apply to all contracts.
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Contracts can be ______ or written.
Contracts can be ______ or written.
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The most common business contract is the ______ of goods.
The most common business contract is the ______ of goods.
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Most contracts are ______, with a promise exchanged for performance of an act.
Most contracts are ______, with a promise exchanged for performance of an act.
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If neither party has fulfilled their obligations, the consideration is the mutual ______ of rights.
If neither party has fulfilled their obligations, the consideration is the mutual ______ of rights.
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If performing the contract becomes impossible, it's ______.
If performing the contract becomes impossible, it's ______.
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If the contract isn't enforced within a specified time (period of limitation), it's ______.
If the contract isn't enforced within a specified time (period of limitation), it's ______.
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Contracts are ______ if a party dies, particularly those involving personal service.
Contracts are ______ if a party dies, particularly those involving personal service.
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Breach occurs when a party fails to fulfill their ______ obligations.
Breach occurs when a party fails to fulfill their ______ obligations.
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______ breach: One party declares they won't fulfill their obligations before the performance is due.
______ breach: One party declares they won't fulfill their obligations before the performance is due.
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______ breach: A party fails to fulfill their obligations at the due date, or only partially meets the terms.
______ breach: A party fails to fulfill their obligations at the due date, or only partially meets the terms.
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Damages: A sum of money to compensate for ______ loss.
Damages: A sum of money to compensate for ______ loss.
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Rescission: The contract is ______, returning parties to their pre-contractual positions.
Rescission: The contract is ______, returning parties to their pre-contractual positions.
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Specific performance: The breaching party must fulfill their ______ duties.
Specific performance: The breaching party must fulfill their ______ duties.
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______ performance occurs when a party accepts a portion of the performance from the other party.
______ performance occurs when a party accepts a portion of the performance from the other party.
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Complete performance occurs when all ______ of the contract are met.
Complete performance occurs when all ______ of the contract are met.
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Europcar's offer: Based on the criteria, Europcar presents several offers matching the ______.
Europcar's offer: Based on the criteria, Europcar presents several offers matching the ______.
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A contract exists upon acceptance of the offer by the ______.
A contract exists upon acceptance of the offer by the ______.
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______ is crucial because it signifies mutual agreement, forming a legally binding contract.
______ is crucial because it signifies mutual agreement, forming a legally binding contract.
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Clarke insures his factory with three companies and it burns down, he can only claim from ______.
Clarke insures his factory with three companies and it burns down, he can only claim from ______.
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You can only insure something in which you have an ______ interest—where you stand to make a personal or business loss.
You can only insure something in which you have an ______ interest—where you stand to make a personal or business loss.
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Liability is being legally ______ by law.
Liability is being legally ______ by law.
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Negligence is the ______ to exercise the care a reasonable person would in the same circumstance.
Negligence is the ______ to exercise the care a reasonable person would in the same circumstance.
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Alleynes' ability to claim on its freezer insurance involves ______ good faith (truthful claim details) and proximate cause (power outage causing ice cream melt).
Alleynes' ability to claim on its freezer insurance involves ______ good faith (truthful claim details) and proximate cause (power outage causing ice cream melt).
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A ______ policy pays a lump sum after a specific term or upon death.
A ______ policy pays a lump sum after a specific term or upon death.
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______ insurance protects against employee dishonesty or fraud.
______ insurance protects against employee dishonesty or fraud.
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Insurance reduces ______ in business, a inherently risky endeavor.
Insurance reduces ______ in business, a inherently risky endeavor.
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Insurance allows businesses to ______ potential financial losses from various unforeseen events, thus boosting their confidence to engage in more ventures.
Insurance allows businesses to ______ potential financial losses from various unforeseen events, thus boosting their confidence to engage in more ventures.
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______ credit insurance specifically benefits exporters.
______ credit insurance specifically benefits exporters.
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A ______ note is a document indicating additional money owed due to errors or additional charges.
A ______ note is a document indicating additional money owed due to errors or additional charges.
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A ______ of account summarizes all transactions and payments between the buyer and seller over a specific period.
A ______ of account summarizes all transactions and payments between the buyer and seller over a specific period.
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The ______ form would include specific book titles and ISBNs, quantities of each book, agreed prices, and delivery address.
The ______ form would include specific book titles and ISBNs, quantities of each book, agreed prices, and delivery address.
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An invoice is a formal request for ______ from a supplier to a buyer.
An invoice is a formal request for ______ from a supplier to a buyer.
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The ______ amount owed is the final amount due on an invoice.
The ______ amount owed is the final amount due on an invoice.
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A ______ invoice acts as a contractual agreement between the buyer and seller.
A ______ invoice acts as a contractual agreement between the buyer and seller.
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A purchase requisition form is used by a ______ to order supplies.
A purchase requisition form is used by a ______ to order supplies.
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A statement of account shows the ______ balance, transactions during the period, and closing balance.
A statement of account shows the ______ balance, transactions during the period, and closing balance.
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A ______ card tracks stock levels.
A ______ card tracks stock levels.
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An ______ contract is an agreement made with an insurer to pay premiums in exchange for cover.
An ______ contract is an agreement made with an insurer to pay premiums in exchange for cover.
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______ of risk means insurance companies pool premiums from many clients to pay out claims for a smaller number of clients.
______ of risk means insurance companies pool premiums from many clients to pay out claims for a smaller number of clients.
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Subrogation means to take the place of the ______ for which the claim is made.
Subrogation means to take the place of the ______ for which the claim is made.
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Proximate cause is the original event that caused the ______ or loss.
Proximate cause is the original event that caused the ______ or loss.
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Indemnity puts someone back in their position before a ______.
Indemnity puts someone back in their position before a ______.
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Utmost good faith means all parties in an insurance agreement have disclosed all relevant information ______.
Utmost good faith means all parties in an insurance agreement have disclosed all relevant information ______.
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A ______ is a proposal establishing willingness to enter a legal agreement.
A ______ is a proposal establishing willingness to enter a legal agreement.
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In a contract, ______ is the act of agreeing to the terms of an offer.
In a contract, ______ is the act of agreeing to the terms of an offer.
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A ______ contract is one under seal, often used for serious transactions like land sales or mortgages.
A ______ contract is one under seal, often used for serious transactions like land sales or mortgages.
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A contract declared by a court of law and entered into court records is called a ______ of record.
A contract declared by a court of law and entered into court records is called a ______ of record.
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A simple contract must involve ______ of the parties, meaning they have the legal capacity to enter into an agreement.
A simple contract must involve ______ of the parties, meaning they have the legal capacity to enter into an agreement.
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The parties involved in a contract must have the ______ to create legal relations, meaning they intend to be legally bound by their agreement.
The parties involved in a contract must have the ______ to create legal relations, meaning they intend to be legally bound by their agreement.
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In a contract, ______ is the exchange of something of value for another thing of value.
In a contract, ______ is the exchange of something of value for another thing of value.
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______ consideration is an immediate exchange of value, while ______ consideration involves an exchange that will happen in the future.
______ consideration is an immediate exchange of value, while ______ consideration involves an exchange that will happen in the future.
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______ agreement occurs when both parties exchange promises, each serving as consideration for the other.
______ agreement occurs when both parties exchange promises, each serving as consideration for the other.
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A ______ agreement is when one party makes a promise in exchange for the other party's performance.
A ______ agreement is when one party makes a promise in exchange for the other party's performance.
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The party making an offer is called the ______.
The party making an offer is called the ______.
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The party receiving an offer is called the ______.
The party receiving an offer is called the ______.
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A ______ is a response to an offer that changes the original terms, effectively terminating the original offer.
A ______ is a response to an offer that changes the original terms, effectively terminating the original offer.
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A display of goods in a store is typically considered an ______ to treat, not a legally binding offer.
A display of goods in a store is typically considered an ______ to treat, not a legally binding offer.
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The case of ______ v. ______ Smoke Ball Co. (1893) highlights the concept of offers made to the world.
The case of ______ v. ______ Smoke Ball Co. (1893) highlights the concept of offers made to the world.
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Acceptance of an offer must be ______ and ______, meaning it cannot be conditional or add new terms.
Acceptance of an offer must be ______ and ______, meaning it cannot be conditional or add new terms.
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The contract is formed when the ______ is received by the offeror.
The contract is formed when the ______ is received by the offeror.
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For postal acceptance, the contract is formed when the ______ is posted.
For postal acceptance, the contract is formed when the ______ is posted.
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The person who accepts an offer is known as the ______.
The person who accepts an offer is known as the ______.
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A contract can be ______ (terminated) when the obligations of both parties are fulfilled or under certain circumstances.
A contract can be ______ (terminated) when the obligations of both parties are fulfilled or under certain circumstances.
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One way to discharge a contract is by ______, where both parties mutually agree to end the contract.
One way to discharge a contract is by ______, where both parties mutually agree to end the contract.
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The most common method of contract discharge is through ______, where all parties fulfill their obligations.
The most common method of contract discharge is through ______, where all parties fulfill their obligations.
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A ______ is a guarantee given on the performance of a product or service.
A ______ is a guarantee given on the performance of a product or service.
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A contract can be discharged by ______ of contract, which occurs when one party fails to fulfill their obligations.
A contract can be discharged by ______ of contract, which occurs when one party fails to fulfill their obligations.
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The contract's duration expiring is a method of discharge known as ______ of time.
The contract's duration expiring is a method of discharge known as ______ of time.
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An unforeseen event that makes contract performance impossible is known as ______ or frustration.
An unforeseen event that makes contract performance impossible is known as ______ or frustration.
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Study Notes
Contracts
- A contract is a legally binding agreement between two or more parties, outlining specific terms and conditions.
- It involves a promise (consideration) from one party in exchange for a valuable benefit from another.
- Examples include employment contracts, sales contracts, and contracts of agency.
- Contracts can be oral or written; written contracts are easier to enforce in court.
- Contracts can also be implied, based on the conduct of the parties involved.
- Key elements: offer, acceptance, capacity, intention to create legal relations, and consideration.
Types of Contracts
- Simple Contracts: No seal required; binding based on offer, acceptance, and consideration.
- Specialty Contracts: Formal contracts under a seal (signing, sealing, delivering). Require more formality than simple contracts.
- Contract of record: Established by a court of law; legally binding and recorded in court records. This offers the strongest evidentiary support.
Conditions of a Contract
- General conditions: Apply to all contracts.
- Specific conditions: Unique to a particular contract.
Characteristics of a Simple Contract
- Offer and acceptance: Clear agreement between parties.
- Competence of parties: Parties must be of legal age and sound mind.
- Intention to create legal relations: Parties must intend for the agreement to be legally binding.
- Consideration: Each party must exchange something of value. This can be an act, a promise, or a forbearance. Consideration must be sufficient, but does not have to be equal to the other party's consideration.
Simple Contract: Offer and Acceptance
- Offeror: Party making the offer.
- Offeree: Party receiving the offer.
- An offer must be clear, communicated, and genuine.
- Acceptance must be in the manner specified by the offeror.
- A counteroffer voids the original offer.
Competence of Parties
- Parties must be of legal age.
- Parties must be of sound mind.
- Minors typically cannot enter certain binding contracts.
- Contracts entered under duress are void.
Intention to Create Legal Relations
- Courts often presume intention to create legal relations in business contracts.
- Presumption may be absent in social or domestic situations.
Consideration
- Consideration is the exchange of something valuable.
- Executed consideration: Immediate exchange.
- Executory consideration: Exchange happens in the future.
- Bilateral agreement: Exchange of promises.
- Unilateral agreement: One promise in exchange for performance.
Discharge of a Contract
- Discharge: Contract termination.
- Methods include: by agreement, by performance, by breach, by impossible circumstances (frustration), by lapse of time.
Discharge by Performance
- Complete Performance: Parties fulfill all terms.
- Substantial Performance: Parties fulfill most, but not all, terms. Might have valid claims for the terms remaining.
- Variations of terms: Can happen via an agreement, acceptance or waiver.
Breach of Contract
- Anticipatory breach: Declaration that one party won't fulfill. The offended party can immediately take action or wait.
- Actual breach: Failure to perform on the scheduled date of the contract.
Remedies for Breach of Contract
- Damages: Compensate for financial losses.
- Rescission: Terminate the contract.
- Specific performance: Force the breaching party to perform.
- Injunction: Prevent the breaching party from doing something.
Insurance Principles
- Subrogation: Insurance company takes over the rights of insured against a third party.
- Proximate cause: The original event that caused the loss. The event is covered if within the policy terms.
- Indemnity: Insured is restored to their original position before the loss.
- Utmost Good Faith: Honest disclosure of information by all parties.
- Contribution: Insured can only claim from a single insurer for a covered loss.
- Insurable Interest: Insured must stand to lose something financially due to the event.
- Liability and Negligence: Legal responsibility and failure to exercise reasonable care.
Insurance Policies
- Life Insurance: Covers death, with varying payments.
- Non-life Insurance: Covers various risks in business, with a wide range of policies (e.g., fire, product liability).
Trade Credit Insurance
- Protects exporters against non-payment by foreign buyers.
- Helps increase confidence in international trade.
Business Documents
- Various business documents (like invoices, purchase orders, stock cards) are crucial for tracking and handling financial transactions.
- Their usage is essential for maintaining accurate financial records and complying with legal requirements.
Case Studies
- Carlill v Carbolic Smoke Ball Co.: Landmark case highlighting offers made to the public becoming legally binding.
- Europcar Case Study: Illustrates the steps in contract formation, such as offer, acceptance, and formation of a contract.
- NH International (Caribbean) Case Study: Shows the importance of contract terms, especially when financial information is critical.
- Television Jamaica Case Study: Illustrates contract breach and associated compensation.
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Description
This quiz covers the fundamental aspects of contracts, including definitions, key elements, and various types such as simple contracts, specialty contracts, and contracts of record. Understanding these categories is essential for recognizing the legal implications of agreements in everyday life.
