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Contract: Rules and Theory

Judicial decisions, legislation and European influence on contract

  • 3 things to know
  • A2 Units 3 and 4

Overview

Recall questions on Williams v Roffey, the power to depart from earlier decisions, statutory reform of privity and frustration, European influence on unfair terms, and why the law is piecemeal.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

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

Numbers

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

Evaluation

Give two disadvantages of developing contract law through judicial decision.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How do judges develop the law of contract?

    Model answer

    Judges develop it incrementally through the doctrine of precedent, by deciding new fact situations, distinguishing awkward authorities and occasionally departing from an earlier decision of the same court.

  2. 2

    Explain how Williams v Roffey Bros (1991) illustrates judicial development of contract law.

    Model answer

    The Court of Appeal accepted that a practical benefit obtained from a promise to complete an existing duty could amount to consideration, softening the rule in Stilk v Myrick (1809) without Parliament legislating.

  3. 3

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

    Model answer

    The Practice Statement of 1966 allows it to depart from its own earlier decision when it appears right to do so, a power now exercised by the Supreme Court.

  4. 4

    Give two advantages of developing contract law through judicial decision.

    Model answer

    It responds quickly to new commercial situations without waiting for parliamentary time, and each rule is worked out on concrete facts rather than in the abstract.

  5. 5

    Give two disadvantages of developing contract law through judicial decision.

    Model answer

    A new rule operates retrospectively on a transaction entered into under the old one, and change depends on a suitable dispute being litigated by parties who can afford to appeal.

  6. 6

    Which statute reformed the doctrine of privity, and what preceded it?

    Model answer

    The Contracts (Rights of Third Parties) Act 1999 reformed it, following a Law Commission report on contracts for the benefit of third parties published in 1996.

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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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