17-Rules And Theory Of Contract Law

Question 1

What is the 19th century definition of a contract?

Answer 1

“A promise or set of promises which the law will enforce”

Question 2

What case demonstrates that:
Only losses that are reasonably within the contemplation of the parties may be recovered?

Give brief facts.

Answer 2

Victoria Laundry v Newman (1949)

Facts: D was late to fit boiler. C suffered normal business damages but also a loss of contract with Ministry of Supply. This latter part was not contemplated hence damages not recoverable.

Question 3

Victoria Laundry v Newman (1949)

Answer 3

Principle: only losses that are reasonably within contemplation of the parties may be recovered.

Facts: D was late to fit boiler. C suffered normal business damages but also a intricate with Ministry of Supply. This latter part was not contemplated hence damages not recoverable.

Question 4

What is an ‘agent’ regarding contract law?

Answer 4

A person who is authorised to act for another (the principle) in the making of a contract.