Theory of contract law

Question 1

General principle of freedom of contract

Answer 1

General principle of freedom of contract states contract should have free agreement and consent. However courts attempt to limit efficiency of exclusion clauses causing lack of freedom of contract. However parties still have freedom as they have right to enter or not enter into contracts if they agree with the terms of a contract

Question 2

Distinction of offer / ITT

Answer 2

Law distinguishes between offer and ITT but can become blurred in some situations e.g. advertisement is an ITT but in Carlill v Carbolic smokeball it was an offer. This shows how it can be confusing to both parties because rights between parties differ

Answer 3

Consideration reflects the idea law is concerned with bargains not gifts and can

Question 4

Postal rule

Answer 4

General rule states that acceptance must be posted to be sufficient as communication. However new rules are imposed ensuring acceptance is received as postal rule is unfair for modern methods of communication

Question 5

Exclusion