Commercial Law Revision
Commercial Law Questions
1 What is meant by the terms "void" and "Voidable"- give examples quoting relevant case law.
Void = is where there is no contract and never did exist in the first place, and a third party has no rights at all under a void contract.
Case law: J Loudon & Co v Elder’s Curator Bonis.
Voidable = is where a contract is valid until the court sets it aside, and a third party has good title if contracted before the contract being set aside or reduced by the courts. (The timing has to be right)
2 What is meant by the term "the postal rule"? look up the following cases and give a brief outline of how" the postal rule" applied in each case:-
(a) Dunlop -v-Higgins 1848 1HLR381
(b) Jacobson Sons & Co -v-Underwood & Sons Limited 1894 2R654
The postal rule is where an acceptance is to be sent by post then the contract is binding from the moment of posting the letter.
In the case of Dunlop v Higgins where the acceptance was sent by Higgins on 30 January but was delayed in the post and never reached Dunlop until 1 February it was held that even though the reply was delayed it was still a binding contract as it was not the acceptors fault there was a delay in the post.
In the case Jacobson Sons & Co v Underwood & Sons the offer remained open until 6 March and as Jacobson wrote and posted a reply accepting the offer on that date it was held as a binding contract as it was posted on the actual date even though it didn’t reach Underwood until the following day.
3 What are the 4 types of breach of contract?
The four types of breach of contract are:
1) Anticipatory breach
2) Failure to perform
3) Delayed performance
4) Defective performance
4 What is meant by the term "frustration" insofar as it applies to contract law?
Frustration is where it would be illegal or impossible for the contract to go ahead after it has been formed but before it is due to be performed. It is known as supervening impossibility or supervening illegality. Frustration may
1 What is meant by the terms "void" and "Voidable"- give examples quoting relevant case law.
Void = is where there is no contract and never did exist in the first place, and a third party has no rights at all under a void contract.
Case law: J Loudon & Co v Elder’s Curator Bonis.
Voidable = is where a contract is valid until the court sets it aside, and a third party has good title if contracted before the contract being set aside or reduced by the courts. (The timing has to be right)
2 What is meant by the term "the postal rule"? look up the following cases and give a brief outline of how" the postal rule" applied in each case:-
(a) Dunlop -v-Higgins 1848 1HLR381
(b) Jacobson Sons & Co -v-Underwood & Sons Limited 1894 2R654
The postal rule is where an acceptance is to be sent by post then the contract is binding from the moment of posting the letter.
In the case of Dunlop v Higgins where the acceptance was sent by Higgins on 30 January but was delayed in the post and never reached Dunlop until 1 February it was held that even though the reply was delayed it was still a binding contract as it was not the acceptors fault there was a delay in the post.
In the case Jacobson Sons & Co v Underwood & Sons the offer remained open until 6 March and as Jacobson wrote and posted a reply accepting the offer on that date it was held as a binding contract as it was posted on the actual date even though it didn’t reach Underwood until the following day.
3 What are the 4 types of breach of contract?
The four types of breach of contract are:
1) Anticipatory breach
2) Failure to perform
3) Delayed performance
4) Defective performance
4 What is meant by the term "frustration" insofar as it applies to contract law?
Frustration is where it would be illegal or impossible for the contract to go ahead after it has been formed but before it is due to be performed. It is known as supervening impossibility or supervening illegality. Frustration may