INTRO
Define contract
A contract may be defined as an agreement between two or more parties that is intended to be legally binding.
What is the rule regarding the signing of documents?
Parties are bound by the content of the written contract and cannot seek to amend or add to its terms after the fact. Once an agreement is signed, a party cannot use the fact that he or she did not read the terms, as to avoid liability under the contract.
What are the 3 typesof terms
condition, warranty and innominate terms
Give two ingredients of a valid contract
Valid offer ❑ Valid acceptance ❑ Consideration ❑ Intention to Create Legal Relations
What are collateral contracts?
Collateral contracts are secondary contracts which are enforceable as independent agreements, separately from a primary contract. They tend to invoke and enforce promises made in exchange for the entry into the primary contract.
What is the effect of breaching a warranty
Innocent party can claim damages but cannot end the contract
Explain contracts implied in law
These are agreements imposed by courts or statutes despite the absence of at least one element essential to the formation of a binding agreement.
What are mere representation?
Statements that do not form part of the contract, but which helped to induce the contract
What is one contract that MUST be in writing
Sale of Land, Loans
Give two test used to determine whether a statement is mere representation or terms
1. Importance of Statement
2. Timing of Statement
3. Manner of Statement
4. Special skills/knowledge
Explain condition subsequent
A contract that becomes immediately binding on agreement there after the conditions must be performed.
What is a voidable contract?
Such contract is valid until one of the parties elects to end it.
Explain the parole evidence rule
There is a presumption that the written document contains all the terms of the contract. Thus, the general rule is that where a contract is embodied in a written document the extrinsic (parol) evidence is not admissible to add to , vary, subtract from or contradict the terms of the written document.
Give the facts of one case dealing with innominate terms
Hong Kong Fir- ship charterd for 2 years broke down fir 15 weeks
Schuler- sending sale persons weekly to visit store selling tools.
Lombard- computer lease
Poussard- opera singer