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Glossary

 

This section will take you through contractual terms. It is necessary to understand these terms if you are to successfully understand contract law.

Terms Definition
valid/validity Legally binding
invalid/invalidate Not able to be legally enforced
void Not recognised legally/not able to be legally enforced
breach Breaking/neglecting a legal obligation
agreement Offer and acceptance
consideration Something of value which is promised or exchanged by both parties
capacity Relates to restrictions which may be placed on people's abilities to enter contracts
certainty Terms of a contract must be clear; a contract may be declared invalid if there has not been genuine consent as to the terms of a contract
misrepresentation To mislead a party in relation to a fact about the terms of a contract
mode of acceptance Manner in which acceptance is made, eg in writing by fax, post, email etc.
Legality A contract will not be enforced if it is illegal under common law or in breach of legislation.

Read the following questions and choose the right answer. You must answer all questions before clicking on the ‘Check Answer’ button.

1. What does the term capacity mean?

2. What does the term void mean?

3. What does the term valid mean?

4. What does the term certainty mean?

5. What does the term breach mean?

 

 

Read the following statements and identify if they are true or false. You must answer all questions before clicking on the ‘Check Answer’ button.

1. Agreement means intention to trade?

2. Consideration means something that is given to both parties?

3. Invalidate means is not able to be legally enforced?

4. Misrepresentation is to mislead a party in relation to a fact about the terms of a contract?

5. Mode of acceptance is the manner in which something is accepted, e.g. email, fax, written etc.?