WHAT IS CONTRACT LAW?
It is voluntarily assumed.
Formed orally, by conduct or writing.
Governs rights and obligations of those entering into legally binding agreements.
Natural Rights- principles relating to ownership of property- minimal state intervention
In Storer v Manchester City Council [1974], Lord Denning said "In contracts you do not look into the actual intent in a man’s
mind" but at "what he said and did" → a contract is formed when "to all outward appearances" that a contract has been formed
ACCEPTANCE
Final and unqualified – British Steel V Cleveland Bridge
No acceptance should be by silence- Felthouse V Bindley
Acceptance by conduct- Brodgen V Metroplitan Railway co
Invitation to treat
HISTORICAL DEVELOPMENT
Medieval Ideas- Law enforces obligations assumes using correct formalities
19th century- Law enforces all obligations apparently seriously intended
Modern ideas- Law enforces obligations assumes unless policy says should be excluded to protect
vulnerable
Laissez- faire attitude- The court's unwillingness to get involved
Caveat emptor- "Buyer beware"
Focus on form of contract than "fairness"
Bad Bargains
Liberal Economic Theory- government places heavy laws
Individual Voluntary-Can't be forces
Liberty of Citizens
Substance of the bargain is not relevant
Expression of will
Those capable of maximising their position can prosper and promote entrepeneurship
Criticism of LF approach- Fails to take matters outside contract into account, Ignores any party
equality and fails to address problem of monopilies
ROLE OF CONTRACT IN SOCIETY
It is voluntarily assumed.
Formed orally, by conduct or writing.
Governs rights and obligations of those entering into legally binding agreements.
Natural Rights- principles relating to ownership of property- minimal state intervention
In Storer v Manchester City Council [1974], Lord Denning said "In contracts you do not look into the actual intent in a man’s
mind" but at "what he said and did" → a contract is formed when "to all outward appearances" that a contract has been formed
ACCEPTANCE
Final and unqualified – British Steel V Cleveland Bridge
No acceptance should be by silence- Felthouse V Bindley
Acceptance by conduct- Brodgen V Metroplitan Railway co
Invitation to treat
HISTORICAL DEVELOPMENT
Medieval Ideas- Law enforces obligations assumes using correct formalities
19th century- Law enforces all obligations apparently seriously intended
Modern ideas- Law enforces obligations assumes unless policy says should be excluded to protect
vulnerable
Laissez- faire attitude- The court's unwillingness to get involved
Caveat emptor- "Buyer beware"
Focus on form of contract than "fairness"
Bad Bargains
Liberal Economic Theory- government places heavy laws
Individual Voluntary-Can't be forces
Liberty of Citizens
Substance of the bargain is not relevant
Expression of will
Those capable of maximising their position can prosper and promote entrepeneurship
Criticism of LF approach- Fails to take matters outside contract into account, Ignores any party
equality and fails to address problem of monopilies
ROLE OF CONTRACT IN SOCIETY
