ICAB CL Business Law cheat sheet

Contract formation requires offer, acceptance, consideration, intention to create legal relations, and capacity; absence of any element prevents a binding contract.

An offer must be definite and communicated; it lapses by rejection, counter-offer, revocation before acceptance, death, or expiry of a stated time.

The postal acceptance rule: acceptance is complete when a properly addressed letter is posted, unless the offer excludes or requires actual receipt.

Consideration must be sufficient but need not be adequate; performance of an existing duty generally supplies no fresh consideration unless a practical benefit is conferred.

Terms are classified as conditions (essential, breach allows termination and damages), warranties (subsidiary, damages only), and innominate terms (remedy depends on consequences of breach).

Exemption clauses bind only if incorporated by signature, reasonable notice, or course of dealing, and are construed contra proferentem against the party relying on them.

Misrepresentation (false statement of fact inducing the contract) permits rescission and damages; fraudulent misrepresentation additionally supports the tort of deceit.

A company is a separate legal person with perpetual succession; members have limited liability and corporate acts bind through the board or duly authorised agents.

Agency arises by express or implied appointment, ratification, estoppel, or necessity; the principal is bound by acts within the agent's actual or apparent authority.

Contract formation requires offer, acceptance, consideration, intention to create legal relations, and capacity; absence of any element prevents a binding contract.

An offer must be definite and communicated; it lapses by rejection, counter-offer, revocation before acceptance, death, or expiry of a stated time.

The postal acceptance rule: acceptance is complete when a properly addressed letter is posted, unless the offer excludes or requires actual receipt.

Consideration must be sufficient but need not be adequate; performance of an existing duty generally supplies no fresh consideration unless a practical benefit is conferred.

Terms are classified as conditions (essential, breach allows termination and damages), warranties (subsidiary, damages only), and innominate terms (remedy depends on consequences of breach).

Exemption clauses bind only if incorporated by signature, reasonable notice, or course of dealing, and are construed contra proferentem against the party relying on them.

Misrepresentation (false statement of fact inducing the contract) permits rescission and damages; fraudulent misrepresentation additionally supports the tort of deceit.

A company is a separate legal person with perpetual succession; members have limited liability and corporate acts bind through the board or duly authorised agents.

Agency arises by express or implied appointment, ratification, estoppel, or necessity; the principal is bound by acts within the agent's actual or apparent authority.