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Contract: Rules and Theory

Origins, definition and function of contract law

  • 3 things to know
  • A2 Units 3 and 4

Overview

Four essential requirements of a valid simple contract, contract made by deed and describing a contract as voidable.

What you need to know

Answer each one before you reveal it.

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Key term

Define a contract.

Key term

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

Key term

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

Questions from this subtopic

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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