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INTRODUCTION TO CONTRACT LAW (L1) - Coggle Diagram
INTRODUCTION TO CONTRACT LAW (L1)
WHAT IS A CONTRACT?
It is distinguished from a mere social arrangement
Obligations derive from the party's agreement
A contract is a legally enforceable agreement
Contract law governs.
Formation of a contract
Enforcement of a contract
Breach of a contract
WHY DOES CONTRACT LAW MATTER?
Because it affects your everyday life, it is everywhere
Examples of contracts
A contract for the sale of goods (purchase of goods from a shop)
A contract for the supply of a service (Spotify, nail appointment)
Contracts involving both the sale of goods and supply of service (buying a meal at a restaurant)
A contract of carriage (travel by bus or train)
WHY DO WE NEED CONTRACT LAW?
Interpreting agreements
illegal contracts - illegal trading
Fairness
Consumer rights
Agreements >>> disagreements
Legal certainty
KEY RULES FOR CONTRACT LAW
There are at least three different categories of rules which we will be looking into in the module.
Rules relating to the enforcement of agreements
Rules distinguishing those agreements that are legally enforceable from those that are not
Rules relating to the formation and content of agreements
ELEMENTS OF A CONTRACT
INTENTION TO CREATE LEGAL RELATIONS
Both parties must willingly and knowingly intend to enter into a legally binding agreement
CAPACITY
Individuals must have the capacity to understand the consequences of their action
CONSIDERATION
There must be an exchange between the parties, a benefit and a detriment
LEGALITY OF FORM AND PURPOSE
You can only enter into a contract that is legal
AGREEMENT
Requires two elements; offer and acceptance
FUNDAMENTAL PRICIPLES OF CONTRACT LAW (2) - SANCTITY OF CONTRACTS
If parties enter into a contract, they should be bound to perform what they agreed to in that contract
However, common law limitations which may allow a party to escape
Fraud
Misrepresentation
Mistake
Duress
Undue influence
', To ensure that the parties to a contract keep to their bargain and that as few avenues as possible should be afforded for escape from contractual obligations'
FUNDAMENTAL PRINCIPLES OF CONTRACT LAW (1) - FREEDOM OF CONTRACT
However, the law has developed over the years so that 'freedom of contract' is now generally regarded an ideal only where 1) there is an equality of bargaining power between contracting parties; and 2) there is no injury to the economic interests of the community at large
Now, not all contracts are completely voluntary, there may be some restrictions and protections in place to ensure that the relationship between the parties is fair, the idea of freedom of contract is not absolute
Historically, a party is free to choose to enter into a contract on whatever terms it may consider advantageous to its interests and a party should not be liable without having consented to being bound in a valid contract
The law may therefore impose certain obligations
Legal interventions, e.g., Consumer Credit Act 1974, Consumer Rights Act 2015
'Compulsory' contracts e.g., supply of utilities and water
INTERNATIONAL AND EUROPEAN INFLUENCE
Cross boarder contract making
European Union Law
Consumers Rights Directive (CRD) 2011/83/EU
Consumer goods
Unfair commercial practices
Consumer contracts
International trading