Introduction To Contract Law

Question 1

Role of contract

Answer 1

Contracts regulate exchanges and relationships, from business deals to personal commitments. English contract law reflects the political and economic philosophy of the country

Question 2

Essential ingredients of a contract

Answer 2

Consideration, intention, and form

Question 3

Consideration

Answer 3

The exchange of value betweenparties (e.g., money for services)

Question 4

Intention

Answer 4

Parties most intend to create legal obligations

Question 5

Form

Answer 5

Some contracts need to meet special rules (e.g. In writing)

Question 6

Agreement

Answer 6

Consist of promises from both parties. Not all agreements are voluntary; some are imposed by law

Question 7

Enforcement

Answer 7

The usual remedy for breaking a contract is compensation, not forcing aperformance

Question 8

Theories of contract law

Answer 8

Classic theory, reliance theory, expectation theory

Question 9

Classical theory

Answer 9

Contracts are based on promises and individual autonomy this theory doesn’t always account for complexities like unequal bargaining power.

Question 10

Reliance theory

Answer 10

Focuses on reliance on promises, rather than the promise itself.

Question 11

Expectation theory

Answer 11

Courts protect what the non-breaching party expected from the contract

Question 12

Overlap between contract and tort

Answer 12

Same facts can lead to both contract and fort claims (e.g., damaged goods under a delivery contract). Damages in contract law can include post profits, while fort usually limits to restoring the claimant’s pre- loss condition

Question 13

Remoteness of damage

Answer 13

Damages can only be recovered if they are not too remote (i.e.,foreseeable at the time the contract was made).

Question 14

Modern realism

Answer 14

Judges today often take a more realistic approach to contracts, focusing on fairness, reasonableness, and public policy.

Question 15

Formalism

Answer 15

Contracts are interpreted strictly according to their written terms, without considering with broader context.

Question 16

Realism

Answer 16

Judges may adjust the interpretation of contracts based on fairness, even if it deviates from the strict terms.

Question 17

Good faith in contracts

Answer 17

English law does not generally recognized a duty of good faith in contracts, but courts may impose this duty in certain situations. Example: in relational contracts (long-term, cooperative business arrangements), courts may imply a good faith obligation.

Question 18

Special types of contract

Answer 18

Certain types of contracts, such as consumer contracts employment contracts, and insurance contracts, have their own special rules due to the nature of the relationships involved.

Question 19

Globalization and contracts

Answer 19

With the rise of e-commerce and international trade, contract law has faced new challenges. International conventions like the Vienna convention ( cisg) and unidroit principles aim to harmonize contract law across countries.

Question 20

Additional cases laws to note

Answer 20

1. Walford v Miles: English courts reject an implied duty to negotiate in good faith
2. Bates v post office Ltd (2019): introduced the idea that relational contracts require good faith.

Question 21

Key concepts to focus on:

Answer 21

Consideration and its role in making a contract enforceable. The importance of intention to create legal relations. The concept of remoteness in limiting damages. Differences between contract law and tort law when it comes to duties and damages.