Contract Law

Question 1

what is a contract

Answer 1

legally binding agreement between 2 or more people

Question 2

what is a gratuitous promise

Answer 2

promise for which nothing is given in return

not usually enforceable in law

Question 3

why do we need CL

Answer 3

would be impossible to run a society if promises were never binding

CL rarely forces a party to fulfil contractual promises, BUT does compensate the innocent party financially (put in position they would have been in if contract was performed as agreed)

Question 4

what is contract law

Answer 4

enforcing obligations which the parties have voluntarily assumed

contracts don’t have to be in writing and if they are important points nay be left out, so CL aims to find out what/whether parties agreed to

approach is to look for the appearance of consent

Question 5

3 elements of contracts

Answer 5

1. agreement (offer + acceptance)
2. intention to be legally bound (intention to create legal relations)
3. consideration provided by both parties

Question 6

bilateral contracts

Answer 6

both parties take on an obligation, usually by promising the other something

Question 7

unilateral contract

Answer 7

only one party assumes an obligation under the contract

can be made to the whole world so can lead to multiple cobtracts

acceptance is by conduct

Question 8

contracts/writing

Answer 8

contract doesn’t need to be in writing to be legally enforceable

oral agreements are valid

contracts that MUST be in writing:
- sale of land or interest in land
- consumer credit agreements
- contract of employment