Contract Law

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law

Contract law is a kind of Law (civil, not criminal domain). The strength of an authority in the law will depend having like facts and precedence established in higher courts.

What constitutes like facts is subjective.

Two very able advocates trying to persuade the court that the strength of authority
supports their case rather than the opposition

Contract law is subject to the principle of Privity: Generally, only the parties to the contract can enforce it.

Why enter into a contract?

• Facilitate exchange/make bargains
• Plan commercial relationship
• Hold each other accountable

What is a contract?

Promises are made to be kept; contracts are made to be performed.

“An agreement giving rise to obligations which are enforced or recognised by law. The
factor which distinguishes contractual from other legal obligations is that they are
based on the agreement of contracting parties” (Trietel, 2003)

“A contract is essentially an agreement which is freely entered into on terms that
are freely negotiated” Stuart-Smith LJ in W v Essex CC [1998] 3 All ER 111 at p 128

Note: contracts don't have to be written. They can be oral. Warn: Land contracts must be written.

Components of a Valid Contract

A contract consists of:

• Express Terms - Contained in the offer (signer can vary the terms by supplying a counter offer)
• Implied Terms - Terms which aren't written, but assumed, to make the contract fair. Such as when we say pounds in a UK contract, it refers to GBP not Egyptian pounds.

Implied terms are judged through the officious bystander test:

Contracts can also include terms excluding or limiting liability. However some may be classified as [see page 13, unfair contract terms].

A contract requires:

1. an Offer.
2. Acceptance of the offer.
3. Consideration.
4. Intention to create legal relations.
5. Certainty.