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BTF1010 Lecture Week 3 Notes - Coggle Diagram
BTF1010 Lecture Week 3 Notes
Intention to Create Legal Relations
Parties intend for agreement to be legally binding.
2 Presumptions based on Agreement Type
Social/domestic (NO)
No intention to be legally bound.
Commercial (YES - intention)
Assume that there was intent to be legally bound = Contract
Determining Intention
Courts presume friends, family may not enter in contract
Consideration
Price paid for the promise.
Something of value.
Rules
1 - Can be tiny
It must be sufficient but not be adequate.
2-Must not be uncertain
3+4 - Present or Future
5 - New obligation
Performing something you already need to do under the law or under an existing contract is not good consideration.
Formalities
Contracts can be made orally.
Written contracts are sensible in business contexts.
Parliament has passed laws stating that certain kinds of contracts must be in writing, or evidenced in writing to be enforceable.
Capacities
Certain classes of peioe are regarded by the law as incapable of enetring into valid contracts = lack of capacity.
This could include minors and intoxicated people.
Genuine Consent
Consent of both parties.
Only applied is particular circumstances only.