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Contract: Rules and Theory

  • 2 subtopics
  • 8 things to know
  • Paper 3
  • Paper 3, the law of contract — one of two options

What Contract: Rules and Theory covers

Freedom of contract and the countervailing need to protect consumers, and the control of exemption clauses by incorporation, construction and statute.

Where it is assessed

Paper 3

Law of contract, one of two options.

Check the AQA specification ↗

The 2 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What does the theory of freedom of contract hold regarding parties' ability to make agreements?

Key term

Why is the distinction between an offer and an invitation to treat legally significant?

Key term

Does the postal rule apply to instantaneous electronic communications such as email?

Key term

What is an exemption clause?

Key term

What is the overarching aim of remedies for breach of contract?

Key term

What is an injunction as a contractual remedy?

Process

Why do consumers need protection, and what distinguishes an offer from an invitation to treat?

Process

How do courts construe an exemption clause, and which statute controls them?

Take Contract: Rules and Theory further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Acceptance vs Counter-offer

    Acceptance: unqualified agreement to all the terms of an offer. Counter-offer: a response varying the terms, which destroys the original offer.

  • Consideration vs Intention to create legal relations

    Consideration: something of value given by each party in exchange for the other's promise. Intention to create legal relations: the requirement that the parties meant the agreement to be legally binding.

  • Bilateral contract vs Unilateral contract

    Bilateral contract: a contract in which each side promises something to the other. Unilateral contract: a contract in which one side promises to pay if the other performs an act.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    What does the theory of freedom of contract hold regarding parties' ability to make agreements?

    Model answer

    Parties should be free to enter into agreements on whatever terms they choose, with minimal state interference.

  2. 2

    What assumption underlies the principle of freedom of contract regarding the parties involved?

    Model answer

    It assumes parties have equal bargaining power and can negotiate terms that serve their mutual interests.

  3. 3

    Why does the law recognise a competing need to protect consumers against absolute freedom of contract?

    Model answer

    Consumers typically have weaker bargaining power than businesses and may lack the expertise to understand complex contractual terms.

  4. 4

    How does consumer protection legislation restrict freedom of contract?

    Model answer

    It imposes mandatory terms and prohibits unfair practices, limiting the parties' ability to agree on any terms they wish.

  5. 5

    Define an offer in contract law.

    Model answer

    A definite promise to be bound on specific terms, capable of acceptance to form a binding contract.

  6. 6

    What is an invitation to treat?

    Model answer

    An indication of willingness to negotiate or receive offers, not a promise to be bound.

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Contract: Rules and Theory revision questions

What does Contract: Rules and Theory cover in AQA A-Level Law?
2 subtopics: freedom of contract and contract formation and exemption clauses and contractual remedies. Each one has its own page with questions and model answers.
How is Contract: Rules and Theory organised?
By the AQA 7162 specification, subtopic by subtopic, so it matches the order you are taught it in.

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