Theory Of Contract Law

Question 1

Explain the rules of contract law.

Answer 1

• Terms of contract must be certain - both parties must voluntarily agree.
• Mostly developed through common law.

Question 2

Explain the theory of contract law.

Answer 2

• Contract law based on promising - law recognises contracting party as having incurred legal obligation to perform their promise.

Question 3

Explain how implied terms are default terms.

Answer 3

• Automatic rights / terms of contract - therefore not expressed in formation of contract.
• Can be statute law - Consumer Rights Act 2015 - goods + services - S.9, S.10, S.11, S.49, S.52

Question 4

Explain freedom of contract + the competing need to protect consumers.

Answer 4

• Exclude terms - less frequent + protect C as nothing can overrule CRA 2015 in F.C.
• Freedom as parties can decline offer.

Question 5

Explain the distinction between offers, offers in unilateral contracts + ITT.

Answer 5

• Offer - bilateral - goods exchanged.
• Offer - unilateral - both parties to perform obligations.
• ITT - invited to make offer, through auctions, adverts, + articles - Fisher v Bell.

Question 6

Explain acceptances - including rationale for postal rules + electronic communications.

Answer 6

• Postal rules seen as unfair on offeror - could never receive / receive letter of acceptance late - therefore could get into another contract in meantime.
• Courts unwilling to extend postal rules to modern methods of communication - offeree should take reasonable steps to ensure acceptances been received.

Question 7

Explain the rationale for consideration + the relationship between consideration + privity, + between consideration + economic duress.

Answer 7

• Consideration is both parties putting something of value into contract.
• Thomas v Thomas: law concerns bargains.
• Jackson v Horizon Holidays: privity - parties can only benefit where named.

Question 8

Explain the nature + effectiveness of exclusion clauses.

Answer 8

• Exclude / limit liability - invalid - must be incorporated.
• Dispute on clause meaning - relied by B till challenged.
• Rule of 3rd parties - excludes 3rd parties benefiting.

Question 9

Explain good faith.

Answer 9

• Both parties do what they said - reliance.
• Responsible for losses if party at fault.
• Losses must be reasonable in contemplation.

Question 10

Explain balancing interests + justice.

Answer 10

• Both public + private interests need to be balanced - contract law needs to protect everyone.
• Contract law + justice - aims to put you back in position you should’ve been in.

Question 11

Explain the principle of fault.

Answer 11

• Responsibility on one / no parties - blameworthiness.
• Breaches can result in damages + recession - frustration remedies decided depending on circumstances, due to no parties being at fault.

Question 12

Explain morality.

Answer 12

• Hart v Devlin debate.
• Definition of morality.
• Relationship between law + morality.