Principles of the Law of Contract

Question 1

Define the meaning of ‘Contract’

Answer 1

An agreement between two or more people which may have legal consequences

Question 2

List the essential features of a ‘valid simple contract’

Answer 2

Agreement
Consideration (Something of value in exchange for a promise)
Legal Relations (Legal consequences)
Legal Capacity (Over 18, Sound Mind, Not Drunk etc.)
No illegal circumstances
Written, verbal, express or implied

Question 3

Define the relationship between a Producer and Vendor

Answer 3

A producer is one who produces an article for use.

A vendor is one who sells

The producer supplies the vendor

Question 4

Define the relationship between a Vendor and Consumer

Answer 4

A consumer is a user of an article or a purchaser of the good or services.

The vendor neither amends or makes a product, but merely sells it to the consumer.

The vendor may be liable in tort of he/she is under a duty to inspect the goods and fails to do so

Question 5

Define the relationship between Client and Contractor

Answer 5

A client is a person using the services of a professional person.

A contractor is an undertaker of a contract to provide a specific service.

Question 6

List the main aims of The Unfair Contract Terms Act 1977 (amended by the Consumer Rights Act 2015)

Answer 6

Preventing evasion by means of secondary contracts
Outlawing restrictive or onerous conditions in contracts
Preventing people avoiding its provisions or prejudicing the rights of people who seek to pursue remedies