These are my summary notes for the ICAEW Certificate Level Exam. It merges the workbook, study guide, question bank and other key points.
There is one page (approximately) on each chapter and should be used after going over my revision notes multiple times (so once confident on the content).
Writ...
Chapter 1: Contract Formation
Simple Contracts – oral. Does not need to be written to be enforceable
Specialty Contracts – written (Guarantees, Exchange of Bills, and Transfers of Land).
VOID = not a contract
VOIDABLE = can be set aside at the choice of the injured party (misstatement, duress)
UNENFORECABLE = contract but cant be enforced – not in the correct form)
LEGISLATION INTERVENING = court intervening when one party is in a strong bargaining
position
Elements of a contract
1) OFFER:
invitations to treat, a statement saying an individual has an intention to sell, statements made
early in negotiations and vague statements are not offers
Termination of an offer:
- rejection/counter offer; note a request for more info is not a rejection.
- revocation; must be communicated (can be by a third party), can revoke anytime before
acceptance, even if they had agreed to keep the offer open. Don’t need to communicate –
unilateral, collateral contracts.
- time lapse
- failure of pre condition
2) ACCEPTANCE:
- email = unclear
- postal rule
- fax = when received
- must be communicated
3) CONSIDERATION: simple contracts must be supported by considerations
EXECUTED CONSIDERATIONS: an act in exchange for a promise
EXECUTORY CONSIDERATIONS: a promise in exchange for a promise
sufficient but not adequate
Invalid Considerations:
- past
- contractual duty (unless over and beyond)
- statutory duty (unless over and beyond)
- illegal acts
Payment of a lesser sum in satisfaction for a greater sum is not allowed apart from: bargaining
between creditors, alternative consideration and payment by third party.
4) INTENTION TO CREATE LEGAL RELATIONS
- domestic – rebuttable (not happily living together)
- commercial – rebuttable
PRIVATY OF CONTRACT – only a person who is a party to a contract has enforceable rights
under it. Exceptions:
- named or described in the contract
- agents
TERMS - written into a contract and must be enforced
REPRESENTATION – said by offeror to induce someone into a contract; if untrue – breach of
contract, unenforceable and can sue for misrepresentation
IMPLIED TERMS – due to type of contract, parliament, custom and usage, business efficacy
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