Contents Contract Law: Introduction 1 Analysing Contracts. 5 Formation of Contracts: Offer 8 Acceptance. 11 Problems in Offer and Acceptance. 15 Instantaneous Communication in Contracts. 18 Consideration 21 Part-Payments in Contracts 24 Promissory Estoppel. 26 Intention to Create Legal Relations. 30 Misrepresentation 32 Exclusion Clauses. 38 Duress and Undue Influence 44 Mistake and Mistaken Identity 48 Discharge by PerformanceflBreach 54 Illegal Contracts 61 Damages 64
Contract Law: 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: V Enforcing promises V 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 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 . 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 Modifications of the Freedom of Contract Ideology: · Recognition of the fact that parties may be of unequal bargaining power · Weaker parties (e.g consumers) may need protection · Statutory intervention - Sale of Goods Act 1893 . Expansion of consumer protection legislation in the 20th and 21st Century 1 ---
The Current Position of Contract Law: Freedom of Contract concepts are still prevalent in commercial contracts Consumer contracts are subject to tighter regulation 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 Public Law vs Private Law: · Public Law: · Criminal and constitutional . Deals with the relationship between citizens and the state . Sets out the basic rules of societal living · Provides the consequences for breaching such rules Example: If X was found in possession of