Definition of a contract

Question 1

Freedom of Contract

Answer 1

freedom for parties to enter into contract. Consideration Need not be adequate but must be sufficient. Courts seek not to renegotiate terms but simply uphold the contract. They will seek to keep the contract when ruling.

Question 2

Classical view of contract law

Answer 2

Marked boxes of Offer and Acceptance

Question 3

Criticisms of the traditional view

Answer 3

New Zealand Shipping Co v Scatterthwaite [1975]
Costs parties in not reaching the best approach despite the pragmatism forcing facts to fit into the offer and acceptance allows.

Question 4

“No reason why a man should not be a fool.”

Answer 4

George Jessel when referring to the laissez faire nature of contracts.

Question 5

How to measure intent to cause legal relations

Answer 5

Objective method
Smith v Hughes (1871)

Courts look at the way a man conducts himself so that a reasonable man would believe he was assenting to the terms proposed buy the other party.

Question 6

Why the objective test?

Answer 6

Objective approach allows for a pragmatic approach otherwise disputes would never end.

However, where the offeree knew the truth of what the offeror had stated, the objective approach will not prevail.