CONTRACT LAW - lecture notes Public law Deals with the relationship between citizens and the state > sets out the basic rules of societal living - Provides the consequences for breach of such rules - Examples - Criminal law, constitutional law Private Law - Concerned with issues/disputes between private bodies, individuals, companies The State provides the legal framework for settling the disputes, but, the parties are private persons or entities Note: A public body can be involved in a private dispute and private law will apply Property Rights - Rights in rem Rights attach to a 'thing' - Rights connect a person to the thing Example, ownership of a house attaches the owner to that house and rights emerge against any others to prevent interference in relation to that house Personal Obligations - Rights in personam - Deals with relationships between persons - Connects one person to another person The connection is not to a thing, even though a thing might be the subject of the obligation created Example - if I promise to sell my car to you for £500, the car is the subject of the obligation, however, our rights rest in the obligation we have made to each other Contract Law - features Part of the law of obligations Voluntarily created and assumed - Can create obligations for future performance - Standards of performance are usually in accordance with the terms of the contract Remedies are aimed at putting the claimant in a position he/she would have been in if the contract was performed satisfactorily Robinson v PE Jones (Contractors) Ltd [2011] Per Jackson LJ Contractual obligations are negotiated by the parties and then enforced by law because the performance of contracts is vital to the functioning of society. Tortious duties are imposed by law (without any need for agreement by the parties) because society demands certain standards of conduct. - There is an overlap between contract and tort law - for instance, Amy contracts with a Tour Company to be taken around Lincoln, the Tour bus driver is negligent and loses control of the bus injuring all the passengers - liability arises in both Contract and Tort Development of general principles => 14th-17th century, when general common law principles of contract law first developed Late 18th-early 20th century, when freedom of contract/classical theory ideology developed Mid 20th century/Post war period - when consumer welfare approaches developed Before the 14th century the royal courts would not hear actions relating to contracts; these were dealt with privately and/or locally Early 14th Century common law began to hear actions for breach of covenant (contract made under seal) By the end of the 14th Century courts allowed claims based on trespass for defective performance of an undertaking - known as assumpsit Assumpsit is the foundation of what we now refer to as contract law
Formal Contracts versus Informal Contracts At the early development of the common law, formal contracts in the form of a 'deed' were utilised A promise is