Foundations Of Contract Law an der Bucerius Law School | Karteikarten & Zusammenfassungen

Lernmaterialien für foundations of contract law an der Bucerius Law School

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen foundations of contract law Kurs an der Bucerius Law School zu.

TESTE DEIN WISSEN

Duty to inform

Lösung anzeigen
TESTE DEIN WISSEN
  • At common law there are limited duties to inform.
    Usually, the principle of caveat emptor (let the buyer
    beware
    ) applies, meaning there is no duty to inform.
  • An exception is made for latent defects or in the case of
    modern consumer protection laws (Sykes v Taylor Rose).
  • A misrepresentation is a false statement of fact or law
    which induces the other party to enter into the contract. It
    does not lead to a breach, but may render the contract
    voidable.
Lösung ausblenden
TESTE DEIN WISSEN

What are liquidated damages?

Lösung anzeigen
TESTE DEIN WISSEN
  • Liquidated damages are those where the amount recoverable in the event of a specified breach was agreed at contract formation.
  • Liquidated damages that go beyond the actual loss are prima facie void.
    • The Party claiming them must prove that they are no penalty in order to succeed in their claim.
  • Will be upheld where they represent a genuine attempt to realistically quantify a loss in advance and are a good-faith estimate of economic loss. 
    • i.e. a reasonable expectation of what the losses would be for
      breach at the time of contracting.
  • More likely to be upheld where the specific damages are hard to accurately calculate.
  • Liquidated damages clauses which are exaggerations or act
    in terrorem of the other party will be void as a penalty. 
    • Purpose of contract law is not to punish but to compensate


Test in Dunlop Pneumatic Tyre Co. v New Garage & Motor Co.


  • an extravagant sum is generally a penalty
  • a fixed sum that covers many potential breaches is likely a penalty
  • large sum for default on small debt is likely a penalty
  • the wording used by the parties is not conclusive - the construction by the court counts
  • a clause will not be void as a penalty when potential loss was impossible to calculate at the time of contract formation
  • Clause should not deter parties from breaching it = act in terrorem
Lösung ausblenden
TESTE DEIN WISSEN

Explain puffs, representations and contractual
terms:

Lösung anzeigen
TESTE DEIN WISSEN
  • Puff = mere advertising talk, such as “unbeatable value”.
  • Representation = a statement of fact made in order to
    induce someone into entering a contract.
    • Since it is not a term, so it does not result in breach, but it is
      actionable in tort (misrepresentation) or will vitiate the
      formation of a contract
      (the contract is voidable).
  • Term = “Any provision forming part of a contract”. Each
    term gives rise to a contractual obligation, the breach of
    which can give rise to a claim for damages and/or specific
    performance.
Lösung ausblenden
TESTE DEIN WISSEN

Enforceability of contracts

Lösung anzeigen
TESTE DEIN WISSEN
  • Valid – A perfectly good contract containing all the essential
    elements of a contract
    , and therefore legally enforceable.


  • Void –A transaction is said to be void when it is invalid and has
    no legally binding effect.
    It is not a contract and creates no rights
    enforceable
     in contract by either party. For example, lack of
    consideration renders a contract void.


  • Voidable –A transaction is described as voidable when it is
    capable of being either set aside or confirmed at the option of at
    least one party (the innocent party)
    . Until it is set aside, the
    transaction is legally binding on the parties. For example a
    contract can be voidable for undue influence, duress, lack of
    capacity, or misrepresentation.
    • Anfechtbar


  • Unenforceable –An otherwise valid contract, but one the
    courts will not enforce for a procedural reason.
    For example,
    the contract may not be in writing as required by the US Statute
    of Frauds
    (MYLEGS), or the deadline for the enforcement of the
    contract has expired
    due to the Statute of Limitations.
Lösung ausblenden
TESTE DEIN WISSEN

Mistake

Lösung anzeigen
TESTE DEIN WISSEN
  • Unilateral Mistake (mistake by one party);
  • Common Mistake (a shared mistake as to a fundamental fact); 
  • Mutual Mistake (parties are at cross-purposes, although there is
    apparent agreement, each party is so mistaken as to a
    fundamental part of the contract that there is no meeting of the
    minds.
    Each party has made a mistake, but they are different
    mistakes (Peerless case).
  • Bilateral mistakes usually render the contract void (Sherwood v
    Walker).
  • Unilateral mistakes may be operative or inoperative,
    depending on other factors 
    (especially whether the party who
    made the mistake was at fault
    ).
Lösung ausblenden
TESTE DEIN WISSEN

Economic duress

Lösung anzeigen
TESTE DEIN WISSEN

Distinguishes between Legitimate commercial pressure
and Illegitimate commercial pressure = economic duress

Lösung ausblenden
TESTE DEIN WISSEN

In what different ways can a contract be formed?

Lösung anzeigen
TESTE DEIN WISSEN

Contracts can be formed:

  • Orally
  • In writing
  • By conduct (behaviour of the parties).
Lösung ausblenden
TESTE DEIN WISSEN

How may terms be made part of a contract
(incorporated)?

Lösung anzeigen
TESTE DEIN WISSEN

Expressly: by agreement between the parties, either orally
or in writing.
Impliedly: by statute (for example, the UK Sale of Goods
Act), the common course of dealings between the parties, or
customs of trade.

-> Officious bystander test: 

  • Imagine a nosey, officious bystander walking past two contracting parties and asking them whether they would want to put some express term into the agreement. If the parties would instantly retort that such a term is "of course" already mutually part of the agreement then it is apt for implication.
Lösung ausblenden
TESTE DEIN WISSEN

What is a contract?


Lösung anzeigen
TESTE DEIN WISSEN

A contract is a legally binding exchange of promises or agreement between two or more parties that the law will enforce.

Lösung ausblenden
TESTE DEIN WISSEN

Vitiating factors

Lösung anzeigen
TESTE DEIN WISSEN

Factors that may invalidate a contract, allowing it to be set
aside, making the contract either void or voidable.


Factors include:

  • Mistake (Sherwood v Walker)
  • Misrepresentation (Sykes v Taylor Rose)
  • Illegality/public policy
  • Unconscionable terms (Williams v Walker-Thomas Furniture)
  • Duress (Atlantic Baron)
  • Lack of capacity
  • Impossibility
Lösung ausblenden
TESTE DEIN WISSEN

What are the requirements for a legally binding
contract?

Lösung anzeigen
TESTE DEIN WISSEN
  • Offer and matching acceptance (agreement/consensus)
     
  • Certainty of terms (contract must not be vague)
  • Intention to enter into legal relations (animus contrahendi)
  • Consideration (unless “deed under seal”)
  • Certain contracts must be in written form
  • Contract must be possible to perform
  • Capacity, legality, absence of fraud.
Lösung ausblenden
TESTE DEIN WISSEN

What is the doctrine of remoteness?

Lösung anzeigen
TESTE DEIN WISSEN

The remoteness doctrine prevents an injured party from
recovering losses which are too remote or unforeseeable.


Hadley v Baxendale (1854) established a two-stage test:
 

  • Natural loss – loss that “may fairly and reasonably be considered either arising naturally from such breach of contract itself”
    • a natural consequence of the breach - measured objectively

OR

  • Special loss – loss “such as may reasonably be supposed to
    have been in the contemplation of both parties at the time they
    made the contract
    as the probable result of the breach of it” (the
    parties knew or should have known of the losses). 
    • not a natural consequence but one that the parties knew was possible to occur at the time of contract formation = imputed knowledge - measured subjectively
    • Such loss should be measured against foresseability Victoria Laundry Ltd. v Newmann Industries Ltd.
Lösung ausblenden
  • 9315 Karteikarten
  • 100 Studierende
  • 0 Lernmaterialien

Beispielhafte Karteikarten für deinen foundations of contract law Kurs an der Bucerius Law School - von Kommilitonen auf StudySmarter erstellt!

Q:

Duty to inform

A:
  • At common law there are limited duties to inform.
    Usually, the principle of caveat emptor (let the buyer
    beware
    ) applies, meaning there is no duty to inform.
  • An exception is made for latent defects or in the case of
    modern consumer protection laws (Sykes v Taylor Rose).
  • A misrepresentation is a false statement of fact or law
    which induces the other party to enter into the contract. It
    does not lead to a breach, but may render the contract
    voidable.
Q:

What are liquidated damages?

A:
  • Liquidated damages are those where the amount recoverable in the event of a specified breach was agreed at contract formation.
  • Liquidated damages that go beyond the actual loss are prima facie void.
    • The Party claiming them must prove that they are no penalty in order to succeed in their claim.
  • Will be upheld where they represent a genuine attempt to realistically quantify a loss in advance and are a good-faith estimate of economic loss. 
    • i.e. a reasonable expectation of what the losses would be for
      breach at the time of contracting.
  • More likely to be upheld where the specific damages are hard to accurately calculate.
  • Liquidated damages clauses which are exaggerations or act
    in terrorem of the other party will be void as a penalty. 
    • Purpose of contract law is not to punish but to compensate


Test in Dunlop Pneumatic Tyre Co. v New Garage & Motor Co.


  • an extravagant sum is generally a penalty
  • a fixed sum that covers many potential breaches is likely a penalty
  • large sum for default on small debt is likely a penalty
  • the wording used by the parties is not conclusive - the construction by the court counts
  • a clause will not be void as a penalty when potential loss was impossible to calculate at the time of contract formation
  • Clause should not deter parties from breaching it = act in terrorem
Q:

Explain puffs, representations and contractual
terms:

A:
  • Puff = mere advertising talk, such as “unbeatable value”.
  • Representation = a statement of fact made in order to
    induce someone into entering a contract.
    • Since it is not a term, so it does not result in breach, but it is
      actionable in tort (misrepresentation) or will vitiate the
      formation of a contract
      (the contract is voidable).
  • Term = “Any provision forming part of a contract”. Each
    term gives rise to a contractual obligation, the breach of
    which can give rise to a claim for damages and/or specific
    performance.
Q:

Enforceability of contracts

A:
  • Valid – A perfectly good contract containing all the essential
    elements of a contract
    , and therefore legally enforceable.


  • Void –A transaction is said to be void when it is invalid and has
    no legally binding effect.
    It is not a contract and creates no rights
    enforceable
     in contract by either party. For example, lack of
    consideration renders a contract void.


  • Voidable –A transaction is described as voidable when it is
    capable of being either set aside or confirmed at the option of at
    least one party (the innocent party)
    . Until it is set aside, the
    transaction is legally binding on the parties. For example a
    contract can be voidable for undue influence, duress, lack of
    capacity, or misrepresentation.
    • Anfechtbar


  • Unenforceable –An otherwise valid contract, but one the
    courts will not enforce for a procedural reason.
    For example,
    the contract may not be in writing as required by the US Statute
    of Frauds
    (MYLEGS), or the deadline for the enforcement of the
    contract has expired
    due to the Statute of Limitations.
Q:

Mistake

A:
  • Unilateral Mistake (mistake by one party);
  • Common Mistake (a shared mistake as to a fundamental fact); 
  • Mutual Mistake (parties are at cross-purposes, although there is
    apparent agreement, each party is so mistaken as to a
    fundamental part of the contract that there is no meeting of the
    minds.
    Each party has made a mistake, but they are different
    mistakes (Peerless case).
  • Bilateral mistakes usually render the contract void (Sherwood v
    Walker).
  • Unilateral mistakes may be operative or inoperative,
    depending on other factors 
    (especially whether the party who
    made the mistake was at fault
    ).
Mehr Karteikarten anzeigen
Q:

Economic duress

A:

Distinguishes between Legitimate commercial pressure
and Illegitimate commercial pressure = economic duress

Q:

In what different ways can a contract be formed?

A:

Contracts can be formed:

  • Orally
  • In writing
  • By conduct (behaviour of the parties).
Q:

How may terms be made part of a contract
(incorporated)?

A:

Expressly: by agreement between the parties, either orally
or in writing.
Impliedly: by statute (for example, the UK Sale of Goods
Act), the common course of dealings between the parties, or
customs of trade.

-> Officious bystander test: 

  • Imagine a nosey, officious bystander walking past two contracting parties and asking them whether they would want to put some express term into the agreement. If the parties would instantly retort that such a term is "of course" already mutually part of the agreement then it is apt for implication.
Q:

What is a contract?


A:

A contract is a legally binding exchange of promises or agreement between two or more parties that the law will enforce.

Q:

Vitiating factors

A:

Factors that may invalidate a contract, allowing it to be set
aside, making the contract either void or voidable.


Factors include:

  • Mistake (Sherwood v Walker)
  • Misrepresentation (Sykes v Taylor Rose)
  • Illegality/public policy
  • Unconscionable terms (Williams v Walker-Thomas Furniture)
  • Duress (Atlantic Baron)
  • Lack of capacity
  • Impossibility
Q:

What are the requirements for a legally binding
contract?

A:
  • Offer and matching acceptance (agreement/consensus)
     
  • Certainty of terms (contract must not be vague)
  • Intention to enter into legal relations (animus contrahendi)
  • Consideration (unless “deed under seal”)
  • Certain contracts must be in written form
  • Contract must be possible to perform
  • Capacity, legality, absence of fraud.
Q:

What is the doctrine of remoteness?

A:

The remoteness doctrine prevents an injured party from
recovering losses which are too remote or unforeseeable.


Hadley v Baxendale (1854) established a two-stage test:
 

  • Natural loss – loss that “may fairly and reasonably be considered either arising naturally from such breach of contract itself”
    • a natural consequence of the breach - measured objectively

OR

  • Special loss – loss “such as may reasonably be supposed to
    have been in the contemplation of both parties at the time they
    made the contract
    as the probable result of the breach of it” (the
    parties knew or should have known of the losses). 
    • not a natural consequence but one that the parties knew was possible to occur at the time of contract formation = imputed knowledge - measured subjectively
    • Such loss should be measured against foresseability Victoria Laundry Ltd. v Newmann Industries Ltd.
foundations of contract law

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Das sind die beliebtesten StudySmarter Kurse für deinen Studiengang foundations of contract law an der Bucerius Law School

Für deinen Studiengang foundations of contract law an der Bucerius Law School gibt es bereits viele Kurse, die von deinen Kommilitonen auf StudySmarter erstellt wurden. Karteikarten, Zusammenfassungen, Altklausuren, Übungsaufgaben und mehr warten auf dich!

Das sind die beliebtesten foundations of contract law Kurse im gesamten StudySmarter Universum

Common Law of Contract

Universität Münster

Zum Kurs
Contract Law

Universität Augsburg

Zum Kurs
Contract Law

University of Portsmouth

Zum Kurs
Law of Contract

International Islamic University

Zum Kurs
Law of Contract

University of South Africa

Zum Kurs

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden foundations of contract law
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen foundations of contract law