Business law cases
CONTRACT LAW
INTRODUCTION
The Law of Contract governs the relationship between individuals in a wide range of circumstances. Everyday actions often involve making contracts and therefore the law has simple foundations. Contract law covers everything from simple shopping to large commercial deals and case law is wide in the matters that it covers also.
Contracts are made by ordinary people in everyday situations many times a day e.g. buying a magazine, shopping, parking the car etc. Usually these events run smoothly, it is not until disputes occur that the question of a possible contract arises.
WHY DO WE NEED A LAW OF CONTRACT?
Where there is a conflict or dispute there needs to be some system to remedy the situation.
Problems may arise deliberately and dishonestly or with two honest people having different views on a situation. It is easier to ascertain what has happened if a contract is written but, often this is not the case therefore the courts have to look for an objective test of agreement.
SMITH v HUGHES (1871)
A buyer wanted “old oats” for his horse. The seller thought he wanted “new oats”.
The court held (based on the evidence of intention) that the two parties had agreed a sale (“reasonable man”)
ARE ALL PROMISES ENFORCED BY LAW?
Many domestic and social arrangements between friends and family are not legally enforceable, as there is no intention for them to be legally binding. Also, the court will make sure both parties have given something for the contract to be enforceable.
THE FORM OF A CONTRACT
Apart form a few exceptions e.g. land, a contract may take any form (oral or written etc.)
THE BASIS OF CONTRACT LAW
The main aim is to ensure agreements are made in a fair way and are “fair and reasonable”.
There is case law and statute to govern contract law. Much recent contract legislation is in place to protect the consumer e.g. Sale of Goods Act 1979 (as amended) and Unfair Terms in Consumer Contracts
INTRODUCTION
The Law of Contract governs the relationship between individuals in a wide range of circumstances. Everyday actions often involve making contracts and therefore the law has simple foundations. Contract law covers everything from simple shopping to large commercial deals and case law is wide in the matters that it covers also.
Contracts are made by ordinary people in everyday situations many times a day e.g. buying a magazine, shopping, parking the car etc. Usually these events run smoothly, it is not until disputes occur that the question of a possible contract arises.
WHY DO WE NEED A LAW OF CONTRACT?
Where there is a conflict or dispute there needs to be some system to remedy the situation.
Problems may arise deliberately and dishonestly or with two honest people having different views on a situation. It is easier to ascertain what has happened if a contract is written but, often this is not the case therefore the courts have to look for an objective test of agreement.
SMITH v HUGHES (1871)
A buyer wanted “old oats” for his horse. The seller thought he wanted “new oats”.
The court held (based on the evidence of intention) that the two parties had agreed a sale (“reasonable man”)
ARE ALL PROMISES ENFORCED BY LAW?
Many domestic and social arrangements between friends and family are not legally enforceable, as there is no intention for them to be legally binding. Also, the court will make sure both parties have given something for the contract to be enforceable.
THE FORM OF A CONTRACT
Apart form a few exceptions e.g. land, a contract may take any form (oral or written etc.)
THE BASIS OF CONTRACT LAW
The main aim is to ensure agreements are made in a fair way and are “fair and reasonable”.
There is case law and statute to govern contract law. Much recent contract legislation is in place to protect the consumer e.g. Sale of Goods Act 1979 (as amended) and Unfair Terms in Consumer Contracts