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Contract: Rules and Theory

  • 7 subtopics
  • 21 things to know
  • A2 Units 3 and 4
  • Law of Contract, one of three A2 areas of which two are studied

What Contract: Rules and Theory covers

Contract: Rules and Theory is examined in A2 Units 3 and 4 — Contract Law, one of three areas of which a student studies two. Unit 3 applies these rules to a scenario and Unit 4 evaluates them.. It covers Origins, definition and function of contract law, freedom of contract and the classical theory of bargain, contract law and economic development, freedom of contract and consumer protection, judicial decisions, legislation and European influence on contract, human rights, morality and justice in the law of contract and arguments for a European or global law of contract.

Where it is assessed

A2 Units 3 and 4

the law of contract — one of three areas of which two are studied, applied in one paper and evaluated in the other.

Check the WJEC specification ↗

The 7 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

How does the rule on remoteness in Hadley v Baxendale (1854) help parties price a contract?

Numbers

What happened to European derived consumer contract law after the United Kingdom left the European Union?

Evaluation

Give three arguments against harmonising contract law across Europe.

Key term

Define a contract.

Key term

Identify the two limbs of the classical doctrine of freedom of contract.

Key term

How does the Consumer Rights Act 2015 define a consumer?

Key term

What obligation does section 6 of the Human Rights Act 1998 place on a court hearing a contract dispute?

Key term

Why was the action of assumpsit so important to the development of contract law?

Key term

Explain the will theory of contract.

Key term

Explain how an enforceable promise reduces risk in trade.

Numbers

Which statute now governs unfair terms in consumer contracts, and which governs them between businesses?

Numbers

Which statement allows the highest court to depart from its own previous decisions in a contract case?

Key term

Explain the debate about the horizontal effect of Convention rights in contract.

Key term

Why do differing national contract rules impose costs on cross border trade?

Key term

What is a contract made by deed, and why is consideration not needed for one?

Key term

Explain the bargain theory of contract.

Key term

What are transaction costs, and how does contract law lower them?

Key term

State the fairness test applied to a consumer contract term under section 62 of the Consumer Rights Act 2015.

Evaluation

Give two disadvantages of developing contract law through judicial decision.

Key term

Which Convention right protects contractual entitlements as a form of property?

Key term

Distinguish an optional instrument from mandatory harmonisation of contract law.

Take Contract: Rules and Theory further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Will theory vs Bargain theory

    Will theory: locating the binding force of an agreement in what the parties intended. Bargain theory: locating it in the fact that each side paid for what it received.

  • Freedom of contract vs Sanctity of contract

    Freedom of contract: concerning whether a person may choose their terms and their partner in the first place. Sanctity of contract: concerning whether a court will later hold them to what was agreed.

  • Simple contract vs Deed

    Simple contract: requiring each side to give something of value in exchange. Deed: it is enforceable because of the formality with which it is signed, witnessed and delivered.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    Define a contract.

    Model answer

    A contract is a legally binding agreement made between two or more parties which the courts will recognise and enforce.

  2. 2

    Which three common law actions did the modern law of contract grow out of?

    Model answer

    It grew out of the medieval actions of debt, covenant and assumpsit brought in the royal common law courts.

  3. 3

    Why was the action of assumpsit so important to the development of contract law?

    Model answer

    Assumpsit allowed a claimant to sue on an undertaking that had been badly performed or not performed at all, so the common law gained a remedy for broken promises outside sealed deeds and fixed debts.

  4. 4

    Explain why contract is classified as civil law rather than criminal law.

    Model answer

    A contract claim is brought by one private party against another to obtain compensation or performance rather than by the state to punish, and it is decided on the balance of probabilities.

  5. 5

    State the four essential requirements of a valid simple contract.

    Model answer

    There must be an offer, an acceptance, consideration, and an intention to create legal relations.

  6. 6

    What is a contract made by deed, and why is consideration not needed for one?

    Model answer

    A deed is a formal document signed, witnessed and delivered as a deed, and the formality itself proves the promise was seriously meant, so no consideration is required.

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Contract: Rules and Theory revision questions

What does Contract: Rules and Theory cover in WJEC A-Level Law?
7 subtopics: origins, definition and function of contract law, freedom of contract and the classical theory of bargain, contract law and economic development, freedom of contract and consumer protection, judicial decisions, legislation and european influence on contract, human rights, morality and justice in the law of contract and arguments for a european or global law of contract. Each one has its own page with questions and model answers.
How is Contract: Rules and Theory organised?
By the WJEC 603-1978-1 specification, subtopic by subtopic, so it matches the order you are taught it in.

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