Aspects of contract & business law - week 4

What are the four main elements in a contract?

1. Acceptance, Consideration, Capacity and Offer
2. Terms, conditions, Offer and Offeree
3. Offer, Offeree, signature and terms
4. Acceptance, Considaration, Capacity and Offeree

Two friends have decided to form a partnership. One of them enters into an agreement on behalf of the partnership. Who is liable on this contract? Explain

What are the three types of misrepresentation?

1. False, Innocent, Mistaken
2. Fraudulent, Innocent and Negligent
3. Fraudulent, Mistaken, Negligent.

There are two types of contracts that minors can enter into. Which two?

1. Employment and Renting a house
2. Supply of necessary goods and consideration
3. Supply of necessary goods and Employment
4. Consideration and renting a house

Explain consideration

An offer was made to sell goods by a company. The offer was accepted by the buyer, but he wanted to know if payment could be done in terms. The buyer, having heard nothing, accepted the offer by sending a formal letter. 

False

True

A. the offer is not legally binding. 

B. A counter-offer has been made.  

A company has delivered goods to another company as agreed.
What type of term is this? Explain

Which statement is true?
A: Acceptance of an offer must be in written
B: Acceptance of contracts can be verbal or written

1. Statement A
2. Statement B
3. Both statements

Express terms are automatically included in a contract by law

1. True
2. False

Express terms can be either conditions or warranties.

1. True
2. False

Implied terms are negotiable by the parties.

1. True
2. False

Company A is satisfied about the goods delivered by company B. The goods are fit for purpose.
What type of term is this? Explain

Read casestudy p 91. (Hedley)
What type of misrepresentation exists in this situation? Explain

FastBike has sold an electric bike to John. John bought this bike under the assumption that it was e new bike. This was promised to him by Fastbike. After some research on the internet he found out that he is the second owner, the bike he bought is second hand and not new as he was told.
Will this invalidate the contract? Explain.

Eva suffering from a mental illness bought a car from Mycars. Mycars knew this but went ahead with the contract. Eva's mother tried to call off the sale but Mycar took Eva to court.
Explain what the ruling of the court would be.

Give an example of an executory consideration.

Give an exemple of an executed consideration.

Mrs. Bright's company was incorporated july 1ste of this year, however she started ordering her supplies in june. Who is liable? Explain.

There are several factors to consider when looking at acceptance.
Describe two of three factors.

Good luck next week!

Any questions?