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Legal Unit 2 - Coggle Diagram

- - - - Defined as a person under the age of 18 years
      - There are 4 main exceptions to when an infant can enter into a contract otherwise infants usually lack the legal capacity to enter into a contract
        
        Contracts for necessaries
        
        When a person is bound to sell goods and services to an infant such as food and water. If it is not considered necessary to a infant than it can be voidable (Nash v Inman [1908] 2 KB 1) such as 11 fancy coats
        
        Contracts for the benefits of infants
        
        When an infant is entering into employment or an apprenticeship
        
        Long term contracts - Binding unless Repudiated
        
        Repudiated definition means: When a party is unfit or unable to fulfill its obligations under contract
        
        A infant can buy shares in a company and join a partnership etc. Unless the minor repudiates the contract within a 'reasonable time' after turning 18 the contract becomes legally binding.
        
        Where an infant needs to ratify a contract for it to be valid
        
        When an infant reaches the age of 18 years old they can choose on whether they want to elect to an agreement they made previously, so that they become legally bound to the contract. (Ratification)
        
        Generally any contract that is not a necessity to an infant has to be ratified for it to be legally binding.
  - - - When one party takes advantage of someone's weaknesses.
      - Unfair or unethical from one party
    - - One party unfairly influences or puts pressure on the other party to enter into a contract (certain relationships only).
        (One party is in a powerful position and the other party is unable to make an independent judgement).
    - - One party threatened by violence if they don't enter a contract
    - - A statement made in a contract that fails to represent the actual facts, and if this affects the innocent party so much then they have the right to compensation.
      - Criteria
        
        Intended to persuade the plaintiff to enter the contract and successfully did so.
        
        Regards some actual information (Facts)
      - If doesn't effect the plaintiff that much then the party cannot sue for compensation
      - The misrepresentation doesn't have to be in the terms of the contract it could be an oral statement to draw them in.
      - Innocently or fraudulently misrepresentation
        
        Innocent representation is when the offeror did not know the statement or term they made is incorrect.
        
        Fraudulently- Is when knowing the term or thing they said is incorrect but they don't care because they want you in the contract.
    - - one party is mistaken about facts or terms of the document they are signing.
      - When you thought you were buying one thing but it turns out to be completely different e.g a car and a egg
    - - one party has mistaken about the legality of the document they are signing
      - Can only amount to a void contract
- - - - An individual or business that applies to the court to start legal proceedings against a persons.
    - - The individual or organisation which legal proceedings are against. Also can be known as the defendant.
  - - - Entores LD v Miles Far East Corp (p370).
      - Acceptance must be communicated, so acceptance has occurred when the offeror has received an email from the offeree and where the acceptance is received (provided the parties stated that acceptance would be through electronic communication).
- - - - fining retailer Target for false advertising
      - fining Woolworths for anti-competitive details
      - reporting on the strategies used by Woolworths and Coles to prevent shopping centre managers from leasing space to other competing supermarkets; and
        in conjunction with state and territory ofﬁces of fair trading, developing and enforcing mandatory consumer product safety standards (e.g. in food products, motor vehicles, electrical goods etc
      - False or misleading claims examples:
        
        a mobile phone provider signs you up to a contract without telling you that there is no coverage in your region
        
        a real estate agent misinforms you about the characteristics of a property by advertising 'beachfront lots' that are not on the beach
        
        a jewellery store advertises that a watch 'was' $200 and is 'now' $100 when the store never sold the watch for $200
  - - - are safe, durable and free from defects.
      - are acceptable in appearance and finish
      - do everything they are commonly used for.
- - - - the term is an essential part of the contract
      - the term is not carried out, it would make the performance of the rest of the contract totally different from what was agreed.
    - - A warranty is a less important term of the contract and is regarded as subsidiary to the main purpose of the contract.
- - - - The intent to arrange an agreement
      - A contract will not be enforceable if the parties involved did not intend to create legal intentions by entering into an agreement.
      - Cases (Where it was legally binding ): Simpkins v Pays
    - - Before an agreement is legally binding, there must be an offer by one party which is accepted by another party
      - An offer is a proposal by one party to enter into a legally binding contract with another. An offer can be made orally, conduct or in writing.
        
        Oral contracts frequently occur in everyday situations. (Mr Camp and I)
        
        Important agreements can be made orally but they are often mainly detailed in writing so their can be a written record.
        
        Contracts can be implied by conduct e.g using a dispensing machine to buy a can of drink. e.g. Conduct is by someone's actions for example nodding their head.
      - Factors that make up an offer:
        
        Offer= proposal by one party to enter into a legally binding contract.
        
        Invitation to treat: It's an offer that could appear as a willingness to trade or deal (It's not legally binding).
        
        It can be anything displayed to a large number of people (shops), and there is no defined way to choose when someone accepts.
        
        Harris v Nicolson (1873)
        
        The offer must be communicated to the person accepting the offer.
        
        All the terms must be brought to the attention of the (offeree) and brought to his or her notice.
        
        An offer will lapse: if not accepted with the time stated; or if not accepted in a reasonable time, that there was no acceptance stated.
        
        An offer can be withdrawn at any time in the offer stage.
      - Acceptance
        
        Acceptance occurs when the part to whom an offer is made (offeree) agrees to the proposal of the person making the offer (offeror)
        
        Factors that make up acceptance
        
        Acceptance must be actually communicated unless the offer requires an act to be done which does not have to be communicated to the person making the offer.
        
        Acceptance occurs when the party to whom the offer is made agrees to the proposal
        
        Qualified Acceptance
        
        Cannot be made; any offer must be wholly accepted.
        
        You can't accept on the condition of something
        
        Any condition stated in the offer must be followed before an acceptance can be said to have taken place. Gilbert J Mcaul v Pitt club limited
        
        A condition is a requirement or limitation involved in the contract
        
        An offer where a party agrees to the offer after changes ae made to the terms and conditions
        
        Wants acceptance is communicated, it cannot be withdrawn except with the consent of the person making the offer.
        
        Must be accepted in the prescribed time.
    - - -Consideration must exist in every simple contract
      - As long as there is consideration, the court is not as concerned as to its adequacy, provided it is of some value
        
        consideration must not be illegal or unlawful
        
        consideration must be definite (Shiels v Drysdale – p378).
        
        consideration offered now in return for past performance is not good consideration ((Roscorla v Thomas – p378).)
        
        So I believe that means a promise made earlier or an act forms the basis of a future promise. Which cannot be considered consideration because it should happen at the time of the contract.
        
        Consideration definition: Is that gain or benefit must pass to the person making the promise. For example money.
        
        Without consideration a contract is not legally enforceable- one exception the promise is under seal
      - For agreement to be legally valid, there must be a promise by both parties to exchange something of value or benefit = consideration.
        
        E.g. when a plumber fixes your pipe and in return he gets paid (consideration).
      - Mutuality = bound by obligations to the contract
        
        Mutuality Example
        
        Linked to the concept of consideration is that of mutuality. Suppose one party to an agreement for services insisted that she be given the right to pull out of the contract at any time. This could effectively mean that she could refuse to pay once the services have been provided. This removes the obligations of one party to carry out their part of the agreement and makes a contract invalid. There may, however, be valid contracts that allow one party to cancel it if certain conditions are not met. A contract to buy a house is conditional on pest and building inspections, for example.