theory of contract law

Question 1

what is ‘the voluntary nature of agreements’?

Answer 1

-foundations of modern contract law were made in the industrial revolution
-the fundamental basis is voluntariness

Question 2

what is protection for the consumer’?

Answer 2

-over time courts have developed contractual rules to protect consumers, and parliament introduced statute laws to formalise them
-further protection provided with EU membership

Question 3

what are the three parts of a contract distinguished through common law?

Answer 3

-agreement (valid offer followed by valid acceptance)
-consideration (something given in return for something promised, proving the agreement exists)
-intention to create legal relations

Question 4

what is an invitation to treat?

Answer 4

-not an offer
-a passive conversation which invites another person to make an offer
-eg shelves in a shop

Question 5

what is the postal rule?

Answer 5

acceptance is made upon posting the letter, not when it arrives
-adams v lindsell
(modern methods of communication - acceptance is usually upon ‘receipt’ of the offer)

Question 6

what is rationale for consideration?

Answer 6

-doctrine of consideration
-quid pro quo (the need to grant a favour/ advantage in return for something promised)

Question 7

what is consideration and privity?

Answer 7

-consideration must come as a result of a promise to do something
-only the person who agreed to provide the consideration can enforce the promise
-so only the parties involved can sue if they are denied the agreed benefit

Question 8

what is consideration and economic duress?

Answer 8

-sometimes parties realise their obligation won’t be fulfilled for a variety of reasons (specifically in building work)
-so in order to complete the contract, a party asks for extra money to complete it on time
-the promise to pay extra is only binding if there will be a further benefit gained, not just for the fulfillment of the original contract (williams v roffey)
-promise to pay extra is also only fulfillable if it was given free of economic duress

Question 9

whats the nature and effectiveness of exclusion clauses?

Answer 9

-historically they have operated unfairly, as parties aren’t on equal footing
-law has developed so there is more judicial and statutory control over exemption clauses

Question 10

what is the nature and effectiveness of remedies?

Answer 10

-effectiveness depends on the opinion of the injured party (no real way to compensate unless the contract is carried out)
-compensation can be useful, but they can also cause suffering and irritation