Lecture 1-Contracts Flashcards
What is a contract?
A legally binding agreement oral or written
2 contracts the law distinguishes
- Valid-fully binding with essential ingredients
2.Void-not legally binding due to fault
Voidable?
Due to a vitiating factor (considered unlawful)
Consensus ad idem
The meeting of minds (agreement which is legally binding)
Two types of contract
1.Bilateral- when both parties are under an obligation to fulfil their side of the bargain
2.Unilateral- when only one party is under the obligation to perform the contract
Standard-Term contracts
Involves usual or standard contract terms incorporated within the contract and so the consumer is largely unable to negotiate
Classical Contract Theory
In the early modern periods, contracts were seen as being bargains. This is where one party gives something to the other which the other person values
Will theory
Through an increasing complexity and variety regarding contracts, it was understood that contracts were grounded in the parties will
Relation Contract Theory
Contracts are primarily commercial instruments designed to achieve commercial objectives. Thus, the law must give effect to these expressed or implied commercial expectations.
Broader approach
Through taking into account broader commercial aspects, a ‘paternalistic’ approach has been taken in which courts seek to protect weaker parties through their decisions. Courts are deemed to be ‘interventionist’, refusing to give effect to certain types of terms, implying terms within the contract and ultimately restricting freedom of contract.
Instrumentalist Approach
The law of contract has a broader social goal and so contract law should be structured to further that goal.
1.Market Individualism
2.Consumer welfarism
Freedom of Contract
everyone should have the freedom to decide whether to enter an agreement and on what terms to be bound.
