Embark on a foundational exploration of contract law with this insightful PowerPoint presentation titled "Introduction to Obligations." These slides provide a clear and concise overview of key concepts in contract law, offering a fundamental understanding of obligations within legal agreements. Whe...
, INTRO TO CONTRACT LAW
DEFINITIONS TEST OF AGREEMENT PURPOSE OF CONTRACT LAW
CONTRACT – ‘an enforceable To decide whether parties to a contract The law of contract provides the
agreement’ based on mutual have the intention to start a legal ground rules to make it clear what
promises giving rise to obligations relationship.. is needed for a contract to exist and
for the parties involved. The court focuses more on objective intent. be enforceable.
ENFORCEABLE – means legally It disregards a party’s actual state of mind Resolves disputes
binding, can be enforced in court. and focuses on the intention of a rational Prescribes consequences if one party
FREEDOM OF CONTRACT – a person under the same circumstances. breaches their side of the contract.
judicial concept, parties are free to The court will decide whether the It provides generic rules, each case
choose the terms of their contract, enforcement of a contract is rational and is different.
they are free to join or not join the appropriate.
WHAT DOES A CONTRACT COVER
contract.
EXECUTORY CONTRACTS – Covers special arrangements of high market
exchanges that take place in the value and social value between people,
future but are previously agreed businesses, public institutions and even
upon. states, and every day mundane interactions.
• + enables economic risks to There are different types of contracts e.g.
be allocated in advance L’ESTRANGE v GRAUCOB (1934)
TYPES OF CONTRACTS we cannot compare an employment contract
between parties. with a contract of a simple purchase of FACTS – L’Estrange had bought a
NEGOTIATED – document goods.
PRINCIPLES cigarette vending machine from
recording the product of
Graucob and signed a document
negotiations between parties. THREE general principles advanced by
STANDARD FORM – drafted by one without reading it that included an
Andrew Burrows (1983) exemption clause. When the
party and used for all their contracts
• Expectations engendered by a machine broke down the court found
• + reduced cost and more
binding promise that she was unable to sue Graucob
efficient
• Compensation must be granted for because the exemption clause has
• -- one sided, rarely read,
the wrongful infliction of harm been incorporated in the signed
complex
WHAT DOES A CONTRACT LOOK LIKE • Unjust enrichments must be reversed document.
RULE - If a party has signed a
A contract is often in the form of a document then the terms included in
written agreement between parties. it will be binding on the signatory
Contracts can also be in the form of SOURCE OF LAW even if they have not read the
an oral agreement, but harder to The main source of law that applies to document.
prove when disputes arise. contracts is common law i.e. judge-made TODAY – statutes such as the Unfair
law. Contract Terms Act (1977)
specifically protects consumers
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