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Rules and Theory of Contract

The rules and theory of contract

  • 6 things to know
  • Component 4

Overview

Recall questions on what a contract is and its essential requirements, freedom of contract and its limits, the objective approach to agreement, privity, bilateral and unilateral contracts, and the tension between certainty and fairness.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What must be present for a contract to be binding?

Evaluation

What tensions run through the law of contract?

Key term

What is a contract?

Key term

What are the essential requirements for a valid contract?

Key term

What is meant by freedom of contract?

Key term

What is the objective approach to agreement?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a contract?

    Model answer

    A legally binding agreement between two or more parties which the courts will enforce.

  2. 2

    What are the essential requirements for a valid contract?

    Model answer

    Offer, acceptance, consideration and an intention to create legal relations, with capacity and legality assumed.

  3. 3

    What is meant by freedom of contract?

    Model answer

    The classical principle that parties should be free to agree whatever terms they choose without the state dictating them.

  4. 4

    How has freedom of contract been limited in modern law?

    Model answer

    By statutory controls such as the Consumer Rights Act 2015 and by rules on unfair terms, which protect the weaker party.

  5. 5

    What is the objective approach to agreement?

    Model answer

    The courts ask what a reasonable person would understand the parties to have agreed, not what either privately intended.

  6. 6

    What is the doctrine of privity of contract?

    Model answer

    Only a party to a contract may sue or be sued on it, subject to the exceptions in the Contracts (Rights of Third Parties) Act 1999.

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AThe injury to the claimant's rights is small.
BThe injury is capable of being estimated in money.
CThe injury can be adequately compensated by a small payment.

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Royal Assent has not been refused since 1708.
TrueFalse

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Spot the fault in a statement. The traps are the mistakes students actually make.

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