Principles

Question 1

freedom of contract theory

Answer 1

the idea that people are free to enter contracts and cannot be forced to enter an agreement

Question 2

sanctity of contract theory

Answer 2

mutual promises mean both parties have an obligation that should be carried out, if it is not the courts can remedy the situation

Question 3

fairness and clarity theory

Answer 3

terms should be clear so that parties are able to follow them, unfair terms are not allowed

Question 4

good faith theory

Answer 4

for contracts to actually work, there is an assumption that both parties will do what they say they will do

Question 5

equity theory

Answer 5

key principle that underpin the law, they relate to fairness from both parties, a famous equitable maxim ‘come to equity with clean hands’. this men’s balancing interests of contract law with justice