Business Law Test Study Notes Review

Only available on StudyMode
  • Download(s): 381
  • Published: January 21, 2005
Read full document
Text Preview
Business Law - Test Study Notes Review

CONTRACTS - Written. Oral. Implied.

Freedom of contract - what parties agreed to in the first place is unrestricted to the court. Equal bargaining position. Acting Voluntarily.

People can enter in any kind of contract as long as it meets the common law requirements.

Law of contracts: common law or case law.

CONSENSUS - parties must reach a mutual agreement. Equal bargaining positions. Free to enter as they choose. Involves offer and acceptance. Consensus can be inferred (indirect)

CONSIDERATION - commitment of both parties to do something. The consideration is the price each is willing to pay in order to be in the contract.

CAPACITY - legally capable to understand; enter the bargain. Limitations are placed on: infants, insane, intoxicated, aliens, sometimes Native people, & corporations.

LEGALITY - must be legal; not against public policy.

INTENTION - both parties must be serious when striking the bargain & both must intend that legally enforceable obligations will result from it.

FORMAL CONTRACT - is sealed (use of a seal)

SIMPLE CONTRACT or PAROL CONTRACT - verbal or written but not under seal.

EXPRESS CONTRACT - where parties expressly started their agreement, either verbally or in writing.

IMPLIED CONTRACT - INFERRED from the conduct of parties.

Ex. Vending machine - inferred (indirect).

VALID CONTRACT - agreement legally binding on both parties.

VOID CONTRACT - is not legally binding because something is missing. Void Contract - No Contract.

VOIDABLE CONTRACT - is valid but one party has the right to escape.

UNENFORCEABLE CONTRACT - example: required to be in writing under the Statute of Frauds but is not. Courts won't enforce unenforceable contract.

ILLEGAL CNTRACT - involves the performance of unlawful act. It is void.

BILATERAL CONTRACT - both parties make commitments; assume obligations. Offer - Acceptance.

UNILATERAL CONTRACT - There is no exchange of promises in a Unilateral Contract. Unilateral Contract performance is acceptance.

CONSENSUS

Agreement reached - bargain struck.

Terms must be clear; unambiguous.

OFFER

Tentative promise

Offer- must include all important terms.

Interim agreement - agreement of purchase; sale - binding.

Contract not binding until condition satisfied.

Subject-to clauses - terms that make contract conditional.

Quasi-Contracts - contractual relationships, must note exception for service.

COUNTEROFFER - a new offer is proposed before acceptance of a standing offer. When counteroffer has been made original offer comes to an end. If counteroffer is rejected, original offer no longer exists.

OFFERS that CAN'T be REVOKED

Where option exists, offers can't be revoked

Sometimes tendered bid (construction) can't be revoked: if a bid is placed - it is an offer (Supreme Court of Canada decided)

Auctions

Construction Bid

Under Seal

Subsidiary (supplementary)contracts may be implied (unspoken)

STANDARD FORM CONTRACT - fixed terms, not negotiable, bargaining is difficult. Ex. When you buy Air Line ticket. Consumer Protection Legislation controls abuses.

QUANTUM MERIUT - (also called: quasi-contract) - "as much as is deserved". Must pay reasonable amount for services. Courts use to decide.

QUASI-CONTRACT - contractual relationship involving a request for goods; services where there is no agreement on price before the service is performed, courts say to pay reasonable price.

PROMISSORY ESTOPPEL - person makes a promise to do something in the future causes person to incur an expense, the promisor may be liable for those expenses if they fail to live up to the promise. Can only be used as defence. Victim must demonstrate reliance (trust) on the promise and suffer injury as the result of this reliance.

OFFEROR - makes an offer

OFFEREE - accepts the offer

Capacity - Minors - contracts with minors in most provinces are not binding,...
tracking img