General

Question 1

What are the elements in a contract?

Answer 1

• Promise
• Agreement
• Recognition by law

Question 2

What is a contract?

Answer 2

An enforceable promise or agreement

Question 3

What is meant by a promise?

Answer 3

It is one-sided and emphasises the seriousness of the undertaking given by the promiser

Question 4

What is meant by an agreement?

Answer 4

It is multilateral/bilateral and shows consensus between parties on their rights and liabilities

Question 5

What is meant by ‘recognition by law’?

Answer 5

Whatever the parties intend, if a disagreement lands them in court, it is the law that will determine

• Whether, when and what the parties have agreed
• Whether one party can escape from the contract
• How breach should be remedied
• What happens when the contract is silent/uncertain on a certain matter

Question 6

What does the court look for in the formation of a contract?

Answer 6

• Agreement
  
  • Objective test of intentions
  • ‘Mirror image approach’ – offer must be matched by acceptance
  • Certainty of agreement
  • Parties need to have the intention to create legal relations
• Enforcement
  
  • ‘Consideration’
    • Claimant must have promised/given something in exchange for the defendant’s promise
  • Defendant’s promise is contained in a deed
    
    • Certain formalities (e.g. writing) satisfied
  • ​​‘Promissory estoppel’
    
    • Claimant has relied on the defendant’s promise à inequitable for the defendant to renege on it

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