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Contract: Rules and Theory of Contract Law

Contract law, justice and morality

  • 3 things to know
  • Components 2 and 3

Overview

Corrective justice and the moral duty to keep a promise, the criticisms of consideration, how equity softens strict rules, and the argument that contract law encodes the values of a market society.

What you need to know

Answer each one before you reveal it.

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Key term

In what sense does the law of contract pursue corrective justice?

Evaluation

Give one argument that the law of contract produces unjust outcomes.

Evaluation

How far does the law of contract enforce a moral duty to keep promises?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    In what sense does the law of contract pursue corrective justice?

    Model answer

    Corrective justice restores the injured party to the position promised performance would have produced. Damages therefore repair the loss rather than punish the wrongdoer.

  2. 2

    Give one argument that the law of contract produces unjust outcomes.

    Model answer

    A person who signs without reading is bound by terms never actually understood. Formal consent can therefore produce a result no one would call fair.

  3. 3

    How far does the law of contract enforce a moral duty to keep promises?

    Model answer

    The law of contract enforces only promises supported by consideration or made by deed. A morally binding gratuitous promise is unenforceable however solemnly it was given.

  4. 4

    Why is the doctrine of consideration criticised on moral grounds?

    Model answer

    Consideration allows a party to break a serious promise merely because nothing was given for it. Defenders answer that consideration marks out bargains from mere gifts.

  5. 5

    How does the law respond to a bargain obtained by improper pressure?

    Model answer

    A contract obtained by illegitimate pressure may be set aside as voidable. Moral limits of this kind qualify the principle that the parties fix their own terms.

  6. 6

    Explain the argument that contract law reflects the values of a market society.

    Model answer

    Contract law measures obligation in money and treats parties as self-interested bargainers. Critics say those assumptions suit commerce better than family or community relationships.

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Parliamentary and European Law Making
Delegated Legislation
Statutory Interpretation
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A Public Bill changes the general law.
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