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LC Business - Contract Law
Terms in this set (20)
What is a contract?
A contract is a legally binding agreement enforceable by law
Elements of a Contract
Agreement, intention, consideration, capacity to contract, consent to contract, legality of purpose, legality of form
Both parties must agree to take part in the contract. Can be in writing, implied by contact or spoken. An offer must be made and accepted.
Both parties must know that they are taking part in a legally binding agreement.
Both parties must exchange something of value.
Capacity to contract
Not everyone is entitled to be able to enter into a contract. You cannot enter a contract if you're under 18, under the influence of alcohol or drugs, are mentally ill or acting ultra vires (mad)
Consent to contract
No party should be under pressure when making a contract - both parties must enter voluntarily
Legality of Purpose
The details of the contract must be legal, no agreement to do something illegal are considered legal contracts.
Legality of Form
The way in which the contract is created is determind by the contents of the contract - (a contract between a bank and a married couple for a loan should be a written contract whereas a contract between a family to arrange a family should be verbal)
Remedies for Breach of Contract
Sue for damages, rescind the contract, specific performance.
Sue for damages
The party negatively affected can sue for compensation
Rescind the contract
The two parties can decide to scrap the contract completely and forget about it
A judge can order that both parties must carry out the contract
How to terminate a contract
Agreement, performance, frustration, breach
Both parties agree to leave the contract
The contract is carried out by both parties.
Some unforeseen event happens meaning that the contract cannot be pursued (e.g. death of one party)
One party breaks the terms of the contract
(not needed in a contract but is sometimes offered) if a warranty is broken, the contract will not be terminated
If broke the contract can no longer be carried out
THIS SET IS OFTEN IN FOLDERS WITH...
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Leaving Cert Business Acronyms
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