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Contract: Rules and Theory of Contract Law

Origins and definition of the law of contract

  • 3 things to know
  • Components 2 and 3

Overview

Contract in English law, principal source of English contract law and four requirements of a valid simple contract.

What you need to know

Answer each one before you reveal it.

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Key term

Define a contract in English law.

Key term

What is the principal source of English contract law?

Key term

From which older form of action did the modern law of contract grow?

Questions from this subtopic

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  1. 1

    Define a contract in English law.

    Model answer

    A contract is a legally binding agreement made between two or more parties. A contract is enforceable in the courts, unlike a purely social promise.

  2. 2

    What is the principal source of English contract law?

    Model answer

    English contract law is largely common law, built up by judges deciding individual disputes. Statute has intervened in particular areas rather than replacing the whole subject.

  3. 3

    From which older form of action did the modern law of contract grow?

    Model answer

    The modern law of contract grew out of the action of assumpsit, a claim for a broken undertaking. Assumpsit was developed by the royal courts from the fifteenth century onwards.

  4. 4

    Why is English contract law described as uncodified?

    Model answer

    English contract law is uncodified because no single statute sets out the whole of it. The rules sit in decided cases and in a series of specific Acts.

  5. 5

    Name the four requirements of a valid simple contract.

    Model answer

    A valid simple contract requires an offer, an acceptance, consideration and an intention to create legal relations. The parties must also have the capacity to contract.

  6. 6

    What is a bilateral contract?

    Model answer

    A bilateral contract is one where each party gives a promise to the other. Each party carries obligations from the moment the agreement is made.

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