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Contract: Rules and Theory

Human rights, morality and justice in the law of contract

  • 3 things to know
  • A2 Units 3 and 4

Overview

Recall questions on horizontal effect, the Convention right treating entitlements as possessions, whether a general duty of good faith exists, Interfoto and Yam Seng, and the corrective role of equity.

What you need to know

Answer each one before you reveal it.

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Key term

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

Key term

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

Key term

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

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

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

    Model answer

    It makes it unlawful for a public authority, and a court is a public authority, to act in a way incompatible with a Convention right, so the court must develop and apply the law compatibly with those rights.

  2. 2

    How does section 3 of the Human Rights Act 1998 affect statutes governing contracts?

    Model answer

    It requires legislation to be read and given effect compatibly with Convention rights so far as it is possible to do so, which shapes how consumer and credit statutes are interpreted.

  3. 3

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

    Model answer

    The Convention binds the state rather than private individuals, so the argument is whether rights reach a contract between two private parties indirectly, through the court's own duty to act compatibly when it decides the case.

  4. 4

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

    Model answer

    Article 1 of Protocol 1, the right to peaceful enjoyment of possessions, can extend to accrued contractual rights of economic value.

  5. 5

    How might Article 6 of the Convention bear on a contract term?

    Model answer

    Article 6 guarantees a fair hearing before an independent tribunal, so a term that shuts a consumer out of the courts or imposes an inaccessible dispute procedure may be attacked as unfair.

  6. 6

    Which statute, rather than the Convention, is the main protection against discrimination in deciding who to contract with?

    Model answer

    The Equality Act 2010 is the main protection, since it prohibits discrimination in the provision of goods, facilities and services on grounds of protected characteristics.

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Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent

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Roles v Nathan ( ).
196319411945

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AThe defendant owed the victim a duty of care and breached it.
BThe breach carried a reasonably foreseeable risk of death.
CThe breach caused the death.

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Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Pecuniary loss is financial and measurable.
TrueFalse

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