Introductory Lecture Contract Law Lecture 1 A contract is a voluntary agreement which is legally binding. Sale of Goods- Contract of Sale Employment - E.g. Your Part-time Job Agreement Supply of Services- E.g. Courier Credit Agreement - E.g. Phones, Bank loan Hire of Goods- E.g. A Van Contract Law establishes the rules and the principles regarding: Formation of Contracts Enforceability of Contract Contents of Contract Setting aside of Contracts Frustration of Contract Performance of Contracts Breach of Contracts Remedies Role of contract law: · Enforcing promises " Regulating the market · Facilitating exchanges " Informs parties of what they are expected to do regarding a contract " It specifies the interpretations of the contents of a contract " It clarifies what will happen if the contract is not preformed " It encourages performance by establishing remedies in cases of breach. Development of Contract Law: The general principles of contract law were developed through common law mostly. However, there has been statutory interventions at different stages. Also, we have legislation that cover particular types of contracts, e.g. employment contracts. Freedom of Contract/Classical Theory: " Based on an 'exchange' of promises " Each transaction is viewed as 'discreet'
Contract Law Lecture 1 " The role of court is that of 'umpire' or 'arbiter' " Contractual obligations are based on what the parties 'agreed' at the time of contact. Freedom of Contract: " In terms of the economy, during the 19th century, there was a dominant laissezfffaire attitude " As a result of increasing commercialisation, the thinking was to enable wealth creation by allowing business people to regulate themselves. " Due to this, the courts only intervened to settle disputed. " Parties were free to enter into a contract and free to decide the terms of the contract. Why the freedom of contract ideology was modified: Currently: Recognition of the fact that parties may be of unequal bargaining power Statutory intervention - Sale of Goods Act 1893 Freedom of Contract concepts are still prevalent in commercial contracts Weaker parties (example consumers) may need protection Expansion of Consumer Protection Legislation in the 20th and 21st Century Consumer contracts are subject to tighter regulation
Contract Law Lecture 1 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 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 of Contract Law.