I was attached to a law firm for one and a half months, and besides reading lots of cases and attending several court hearings, when I didn’t have anything else to do I read a book I borrowed from the library on Law. It’s a very basic introduction and cannot match up to those whole textbooks those lawyers have on the different types of Law. But it worked as a starter to the concept.
I found the book’s end questions on each topic most useful to study the topic, so I shall just write out the questions and my answers to them (as found from the book).
1. Define a contract, and state the essential elements of a valid contract.
Answer:
A contract is a legally binding agreement between two or more parties, by which rights are acquired by one or more to acts or forbearances on the part of the other(s) - consensus ad idem (there is a common agreement between the parties involved)
The essentials of a valid contract are:
offer and acceptance
intention to create legal relations
capacity
consent (genuine)
consideration - (nb) I did not note down the legal definition of consideration, but from what I remember, this means some benefit for each party involved that would make it seem possible for them, by common sense, to enter into the contract. The layman’s ‘what’s in it for me?’
legality
possibility of performance
2. Distinguish between an offer and an invitation to treat.
Answer:
An invitation to treat is an invitation to make an offer (eg auctioneer inviting bids / goods at a shop window enticing one to make an offer to purchase) whereas an offer is, well, an offer - a voicing out directly of an intention to purchase or do or whatever… (cripes I’m actually quite scared now, if by any chance a law student or lawyer is looking at this please be merciful and not bash me for the countless inadequacies in my explanation - this is a personal project. I will definitely not write this as an answer in my exams when I eventually study Contract Law.)
3. What is the effect of an acceptance ’subject to contract’?
Answer:
Parties are not bound until a formal contract is prepared and signed by them. The purpose of an acceptance ’subject to contract’ is to give the parties an opportunity to reflect on the matter, and change their minds if need be.
4. Describe the main rules regarding consideration:
Answer:
Consideration:
- must be real / genuine (not vague, either)
- need not be adequate, but must be sufficient (I really like this clause (I mean clause in a linguistic, not legal, sense) but when one thinks more about it one realises it can be a legal loophole - what does ’sufficient’ really mean?)
- legal
- consideration must move from the promisee (not only the one who is promised a right should have consideration due to him or her, but also the one who promises to carry out an act or forbear from it)
- consideration must be possible
- consideration must not be past (ie say your benefactor saved you from nearly getting hit by a car. That’s consideration for you. In return you promise to do something that will benefit your benefactor. That’s not valid in contract law, as it has already passed. Hard isn’t it.)
5. Distinguish between a guarantee and an indemnity.
Answer:
Indemnity means having another responsible for a benefit obtained by you, whereas a guarantee means you are primarily liable, and if you default, your guarantor, secondarily liable, must pay.
6. What is the doctrine of part performance? What are the 4 points that must be proved before the equitable remedy will be applied?
Answer:
(nb) I think I over-estimated my ability to memorise and recall confidently the doctrine of part performance, as I didn’t write it down (I’m copying from my notebook.) So from memory, it means what it says: part of the contract has been dutifully carried out by one party to the contract, whereas the other has not.
In order for a remedy to be applied … (nb an equitable remedy is a remedy that is available in the courts of equity. I am writing from a Common Law viewpoint, the British legal system and its commonwealth beneficiaries’. I confess my extremely inadequate understanding of the concept of equity; as far as my readings have taken me from the history of the Common Law system there were certain conditions or circumstances under which the courts were bound, by what was written in black and white, not to take action even though to do so would be wrong (I will not discuss whether morally or socially or … at present). Thus in response the courts of equity were set up so that these cases could be tried and a fair and judgement would be meted out.):
- the court must be able to compel performance (the nature of the contract has to be such that)
- part performance must be unequivocally referable to the contract
- it would be fraudulent to take advantage of lack of evidence so as not to compel performance
- oral evidence (that there was a contract and it was partly performed)
7. (I didn’t like the question, I suppose, because I struck it off my list)
8. What special rules apply to contracts by corporations?
Answer:
- All corporations are incapable of making contracts of a personal nature (like marriage)
- Chartered corporations are not restricted by charter (that set them up), but may be by law through injunctions, etc.
- Statutory corporations are restricted by statutes
- Registered Companies are subject to powers drafted
- Form of contracts are made under seal in cases where an ordinary person is required to do so.
(NB - as the book that I read happened to be published some time ago, say, in the late 80s, early 90s, content may not be as relevant now. Furthermore, as the book is on the English Law system, I felt sometimes that it didn’t really fit always with the laws of commonwealth countries. So really, take it as an intro. Definitely NOT the real thing.)
9. When will an ‘implied term’ be imported into a contract?
- to give the contract business efficacy:
I wrote ‘Moorcock - river bed’, which refers to an example that the book gave. Apparently it should be quite classic as I saw this example in another book. Can’t remember the exact details. Some company (A) let another company (B) dock the latter’s ship called the Moorcock at their river side docking area (now besides the lawyers I think I’m also offending shipping companies and their mates with my imprecise terminology - can’t believe I work at one now! Ahhhh!) but the river belonged to a third party. The river bed was too shallow for B to dock the ship safely and the ship suffered casualties as a result. B sued A, and it was decided that although the river didn’t belong to A but by claiming to B that B could dock at their pier (or equivalent), A has thus implied that the area was safe for docking and so B can successfully sue A for damages.
10. (It is too late and I have to work tomorrow! So I’ll finish this one and continue on another day) Distinguish between (i) a condition and (ii) a warranty, in a contract:
Answer:
A condition is the key clause in a contract, warranties are secondary.
Whoa. Just by doing this I actually feel rather disappointed at meself for not reading up lately on Law… really want to start on Torts but there’s always so much going on! Dear dear. Glad I like what I’m going to study in future. :)