BLAW 212 Laws and Tests Questions and Answers All Correct

BLAW 212 Laws and Tests Questions and Answers All Correct What are the four steps of contract formation? - Answer-1. Offer 2. Acceptance 3. Intention to be bound 4. Consideration What is an offer? - Answer-A clear and unambiguous undertaking or promise to be bound by specified terms which becomes binding on acceptance What are the three characteristics of offer? - Answer-1. Must be definite and clear in its terms (leaves nothing open for negotiations) 2. Can be expressed or implied from conduct 3. Offer can be revoked but not if acceptance has been received What are the four responses to an offer? - Answer-1. Accept the offer and all it's terms 2. Reject the offer 3. Ask for further information or seek clarification 4. Make a counter-offer What is the key thing to remember about forming a contract? - Answer-Either party can make an offer and either party can accept an offer, as long as each of them do one of them then contract is formed. Either can counter offer or reject offers. What must acceptance be? - Answer-Acceptance must be an unconditional, unqualified compliance of all the terms of the offer made in the manner specified by the offeror and communicated to the offeror When can acceptance be revoked? - Answer-Acceptance may be revoked if the revocation is communicated to the offeror before the acceptance is received What are the three general principals of acceptance? - Answer-1. The acceptance must come to the notice of the offeror before the offer expires 2. the manner of acceptance may be specified in the offer 3. mere silence will not constitute acceptance Intention to be bound two presumptions - Answer-1. Parties to business and commerical agreements intend to be legally bound 2. parties to a social or domestic agreement do not intent to be legally bound What is consideration? - Answer-The price paid by the promisee for the promise of the promisor. An act or promise of X in return for act or promise of Y. What is executory consideration? - Answer-An promise to do something (or refrain from doing something) in the future. (Promise has not been performed) What is executed consideration? - Answer-Something given or done at the moment the contract comes into existence (Promise has been performed) What is the general rule of contraction formation? - Answer-Contracts don't have to be in writing to be valid, an oral contract is just as enforceable as a written one What is the law that is an exception to the general rule of contract formation? - Answer- The property law act 2007 What does Section 24 state of the Property Law Act 2007? - Answer-1. A contract for the disposition of land is not enforceable by action unless - a) the contract's terms are recorded in writing; and b) the contract or written record is signed by the party against whom the contract is sought to be enforced What is the exception to Section 24 of the Property Law Act 2007? - Answer-The doctrine of part Performance (section 26) What is the Doctrine of Part Performance? - Answer-- It is an equitable remedy designed to get around injustices caused by the requirement of contracts having to be in writing What is the test for Doctrine of Part Performance? - Answer-1. Is there an enforceable agreement but for S24 of the Property Law Act 2007 2. Has there been part performance of the oral agreement to do with something which: a) is clearly a step in the performance of a contractual obligation or right under that agreement; and b) was done on the balance of probabilities on the basis that a contract for the sale of land as alleged was in existence 3. Do the circumstances in which the part performance took place make it unconscionable for the defendant to take advantage of S24 of the Property Law Act 2007? Test for Minors (Capacity) - Answer-- Minors have no capacity to contract - Contract unenforceable against minor unless the court considers the contract was fair and reasonable at the time the contract was entered into Test for Mentally Disordered People (Capacity) - Answer-1. The MDP proves that she/he did not understand what he/she was doing when entering into the contract because of the mental disorder; and 2. That the other party was aware at the time the contract was entered into of the mental disorder. Test for Intoxicated People (Capacity) - Answer-1. The IP proves that she/he was not able to appreciate what he/she was doing when entering in to the contract as a result of being intoxicated; and 2. That the other party was aware at the time the contract was entered into of the IP's intoxicated state. Test for Unconscionable Bargains - Answer-1. One party has a special disadvantage that affects his ability to conserve his own interests 2. The Stronger party knows about the weaker party's special disadvantage 3. Victimisation a) Active extortion of a benefit; and b) passive acceptance of a benefit in an unconscionable circumstance 5 examples of a special disadvantage - Answer-- Poverty - Sickness - Age _ mental illness - Lack of education - Drunkenness - Illiteracy - Language Remedies for Unconscionable bargain - Answer-- Contract voidable at the option of the weaker party - Return parties to original position - Replace contract with the deal they thought they were getting