Contracts Answers Template
Contract Law-Contracts Answers Template
Resource Sample
FORMATION OF CONTRACT ISSUES: CAPACITY TEMPLATE: 1) [Element 1] A contract is binding unless it can be shown a party did not have legal capacity to enter into a contract, in which case it is void: a) Test 1 A party was so affected by mental infirmity, drugs, or drink as to be incapable of understanding that he was making a contract or forming the necessary intent: Boughton v Knight AND b) The infirmity must have been apparent to the other party: Molton v Camreaux; OR c) Test 2 the party was under the age of 18 years: Age of Majority Act (1974)
INTENTION TEMPLATE: (objective test) 1) [Element 1] The intention to create legal relations between parties is essential characteristic of all contracts: Australian Woolen Mills v C'th a) "It is of the essence of contract that there is a voluntary assumption of a legally enforceable duty". b) To objectively determine whether there was intent to co...
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