A level Law: Rules of the Law of Contract

Objectives:

The Origins of Contract Law

Contracts are more common than you might initially think. Examples of everyday contracts include:

One wouldn't usually give these types of transaction a second thought, but what if something went wrong? What if only half of the album downloaded? What if the sandwich you bought had no filling? If something went wrong, you would seek redress and some form of solution
A contract is essentially an agreement between two parties which is enforceable in law
It is based on promises that the two parties make to each other
Not all promises are contractual, and the aim of contract law is to distinguish those promises that can be enforced, from those that cannot
A contract can alternatively be called a bargain. One party makes a promise in return for the promise of the other - one party will have paid some sort of price for the promise of the other. This "price" need not always be financial
Where a contract "goes wrong", the aim of contract law is to compensate innocent parties and put them in the position they would have been in had the contract been performed
Contracts can be oral or written
Money changing hands to confirm a contract is called 'consideration'

Freedom of Contract

This has its origins in laissez-faire which promotes the idea that since parties are the best judges of their own interest, they should be free to make contracts on any terms they choose

They must be 'voluntary' participants - contracts entered through coercion will be void and treated as if they had never existed

The court then acts as a "referee", holding the parties to their promises - it is not the court's role to ask whether the bargain made was a fair one
Typical remedies for breach of contract:

Damages (usually compensation) -must foreseeably arise from the breach of contract
An injunction of some kind - either forcing you to do, or refrain from doing something

An order for 'Specific Performance' - forcing someone to carry out their side of the contract

The Influence of European Law

A range of European Directives have been passed in the notion of promoting a harmonious internal market and these have had a huge influence on UK contract law, particularly in relation to consumer law
There is an encouragement of the use of standard European contractual terms for certain types of contract. The final draft of the Common Frame of Reference was published in December 2008
In terms of the sale of goods across Europe, the Common European Sales Law was published in 2011, in order to remove the barriers in place between Member States wanting to do business with each other
European Law has also been influenced in regulating online shopping in the UK, and the Consumer Contracts Regulations 2013 were as a direct result of EU legislation

A level Law