CONTRACT LAW LECTURE NOTES WEEK 1-6 LECTURE 1- INTRODUCTION Contract Law Establishes Rules and Principles regarding: . Formation of Contracts · Enforceability of Contracts . Contents of Contracts · Setting Aside of Contracts . Frustration of Contracts . Performance of Contracts · Breach of Contracts · Remedies Role of contract law -Enforcing promises -Regulating the market -Facilitating exchanges . It informs parties of what they are expected to do regarding a contract. . It specifies the interpretation of the contents of a contract. . It clarifies what will happen if the contract is not performed. · It encourages performance by establishing remedies in cases of breach Development of ocontract law · The general principles of contract law were developed primarily through common law, derived from precedent. . However, there has been statutory interventions at different stages. · Also, we have legislation that cover particular types of contracts, example employment contracts.
Freedom of contract ideology/classical theory · Suggests that parties are free to enter into a contract and free to determine the terms. · Based on an 'exchange' of promises. · Each transaction is viewed as 'discreet'. . The role of the court is that of 'umpire' or 'arbiter'. . Contractual obligations are based on what the parties 'agreed' at the time of contract. . The 'will theory' is linked to the freedom of contract theory. Freedom of contract . Reflective of the dominance in the 19th Century of laissez-faire economic attitudes. . As a result of increasing commercialisation, the thinking was to enable wealth creation by allowing businesspeople to regulate themselves. · The courts only intervened to settle disputes Common Law and Equity · The common law was a body of principles which were interpreted strictly. . Where the results reached by common law was harsh, it was possible to petition the King, and later, the Lord Chancellor, to provide a remedy using their discretion. . The Court of Chancery dealt with these petitions and the law that was applied here became known as equity. . The Judicature Acts of 1873 and 1875 fused the administration of both bodies of law. · Principles of Equity play a significant role in Contract Law. LECTURE 2-SITUATING THE LAW OF CONTRACT 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. Example- Criminal Law, Constitutional Law. Example fiCriminal Law-Public 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 fiexample provided in later slide). Example fiProperty Law-Private Law) Example fiContract Law-Obligations-Private Law) Example fiTort Law-Obligations-Private Law) Example fiPublic Bodies - Private Law) 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