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Flashcards in Contract Law Deck (46)
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1

Discharge by frustration

Events occur making it impossible or making the contract fundamentally different. No fault of individual parties

2

Discharge by frustration reasons (4)

1. Destruction of subject matter
2. Inability to achieve the main object
3. Change in laws/government actions
4. Death/permanent illness of a party

3

Express terms

Terms specifically agreed upon orally or written at the time the contract is made

4

Condition

- Fundamental term
- A breach gives the innocent party to claim damages
- Gives the right to TERMINATE contract if necessary

5

Parol evidence rule

If a contract is in written form, no outside evidence makes the terms change

6

Innominate

Intermediate-term disagreed on. Unclear if it is a warranty or a condition.

7

Contract classification terms (3)

1. Condition
2. Warranty
3. Innominate

8

Discharge by performance

Precisely the things both parties wanted and agreed upon have to be completed

9

Discharge by performance
--> Exceptions (2)

1. Substantial performance
2. Divisible contract

10

Contract

A voluntary agreement made between two or more parties

11

A term used for contract breach

Contractual liability

12

Duress

When a party enters a contract due to violence, threats or something in that direction. (economic pressure as well)

13

Undue influence

Improper pressure put on someone

14

Contract termination cases (6)

1. Void contract
2. Voidable contract
3. Performance
4. Breach
5. Agreement
6. Frustration

15

Exclusion clause
--> conditions (3)

Its purpose is to limit or exclude liability for one party when breaching a contract.
- Must cover the exact circumstances
- Can't defeat the main purpose of the contract
- Judges decide if it is a fundamental breach

16

Transfer of property

The transfer of OWNERSHIP RIGHTS
Possession would mean having but NOT OWNING something.

17

When does ownership pass?

As soon as the risk passes. The future owner has to be in possession.

18

"offer and acceptance"

The party must be aware of it not being an invitation to treat (negotiate)

19

Conditions to be an OFFER (3)

1. Offer must be clearly communicated
2. The terms must be certain
3. The offer must still be available (not terminated)

20

Classification of contract terms (6)

1. Condition
2. Warranty
3. Innominate
4. Express terms
5. Exclusion clauses
6. Implied terms

21

Contract termination
--> Discharge types (4)

1. Discharge by performance
2. Discharge by agreement
3. Discharge by frustration
4. Discharge by breach

22

What is a "Consideration" in a contract?

Something of value (consideration) that will be exchanged for another thing of value (consideration)

23

Types of consideration (2)

1. Bilateral - Exchange of promises
2. Unilateral - Act in return of a promise

*Note: mustn't be of equal value for both

24

Mistake (Voidable contracts)
--> types (4)

1. Non est factum
2. Mistaken identity
3. Common mistake
4. Mutual mistake

25

Non est factum

A fundamental mistake in the NATURE of the contract

26

Mistaken identity

One party is mistaken as to the Identity of the other party

27

Common mistake

Both parties are mistaken about the same thing

28

Mutual mistake

Parties misunderstood each other; no real agreement

29

Employment contract types (2)

1. Contract for services
2. Contract of service

30

Contract FOR services

An independent contractor