This chapter considers the circumstances in which a mistake by one or both parties may affect the validity of the contract, and discusses the two categories of case: (i) where agreement has been reached, but upon the basis of a common mistake; and (ii) where an apparent agreement is alleged to be vitiated by mutual or unilateral mistake. It also considers cases of documents mistakenly signed, that is, where a person is induced by the false statement of another to sign a written document containing a contract which is fundamentally different in character from that which he contemplated.
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M P Furmston
This chapter discusses three reasons why a contract may be invalid. These are that it was procured by misrepresentation (basically one party misleading the other), by duress (threats by one party to the other), or by undue influence (one party improperly taking advantage of the other).
Chapter
M P Furmston
This chapter and the next two chapters set out the way in which a legally binding contract is made. This chapter explains the formation of the contract and sets out the rules that determine whether what has happened should legally be regarded as an agreement. The discussions cover offer and acceptance; termination of offer; constructing a contract; inchoate contracts; and long-term relationships.
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This introductory chapter provides a brief overview of the fundamental elements of what constitutes a contract. It discusses undertakings or promises, deeds, written and oral promises, bargains, and bilateral and unilateral contracts. It concludes by examining some general themes in contract law to which reference will be made throughout the present title. These include freedom of contract, will theory, economic efficiency, objectivity in contract law, common law and equity, contract law within private law, and international influences on contract law. The outline provided in this chapter is necessarily brief; although some of the themes may seem a little difficult in the abstract, students approaching this subject for the first time should not be troubled. The concepts will become familiar and more easily understood through concrete examples provided in later chapters.
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This chapter analyses the formation of unilateral contracts. A unilateral contract arises where O promises A something if A does a particular act which is not the making of a promise to O. A unilateral contract only imposes obligations on O. A is not obliged to do anything. A unilateral offer can be accepted by A regardless of A’s motive for doing the required act. However, A must know of the offer in order for a contract to be formed. O may not be able to revoke the offer if A has embarked upon performance. This will depend upon whether or not O has made an implied promise not to revoke the offer.
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This chapter examines breach of contract and the remedy of termination. It addresses the following questions: (1) What is breach of contract and when does it occur? (2) What sorts of breach will entitle a claimant to elect whether to end (terminate) the contract? (3) What is the effect of terminating a contract? (4) When can the claimant insist on continuing with performance (affirmation) when the defendant no longer wants it? (4) What additional special remedies do consumers have in certain cases?
Chapter
M P Furmston
This chapter discusses two types of contracts rendered void by statute: wagering contracts and agreements prohibited by competition law (EU competition rules and UK competition rules).
Chapter
M P Furmston
This chapter discusses the doctrine of privity of contract. It covers exceptions to doctrine, the Contracts (Rights of Third Parties) Act 1999; and attempts to impose liability upon nonparties to the contract.
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This chapter examines breach of contract and the remedy of termination. It discusses: (1) what constitutes breach of contract; (2) the types of breach that will entitle a claimant to elect whether to end (terminate) the contract and sue for damages; namely, conditions and innominate terms the breach of which deprive the claimant of substantially the whole benefit expected under the contract; (3) how terms are classified into conditions, warranties, and innominate terms; (4) the nature and effect of terminating a contract; (5) when the claimant can insist on continuing with performance (affirmation) when the defendant does not want to perform the contract; and (4) the additional special remedies available to consumers in certain cases.
Chapter
M P Furmston
This chapter focuses on contracts prohibited by statute or contracts deemed illegal at common law on grounds of public policy, and discusses the consequences of illegality and proof of illegality.
Chapter
M P Furmston
This chapter discusses the law on contracting through agents. It covers the place of agency in English law; the formation of agency; the position of principal and agent with regard to third parties; unauthorized acts of the agent; and termination of agency.
Chapter
M P Furmston
This chapter discusses the law on performance and breach of contact. It covers the order of performance; excuses for non-performance; whether a party who does not perform perfectly can claim payment or performance from the other party; whether an innocent party who has paid in advance can recover his payment in the event of a failure of perfect performance; whether the innocent party can terminate the contract; the effect of a repudiation or a fundamental breach; the effect of discharging the contract for a bad reason, when a good reason also exists; contractual provisions for termination; stipulations as to time; and tender of performance.
Chapter
M P Furmston
This chapter and the next five chapters deal with cases where what looks like a contract turns out to be in someway defective. The ‘unenforceable contract’ resulted from procedural rather than substantive law. The origin of this position can be found in the passage, as long ago as 1677, of the Statute of Frauds. This chapter, which examines the history of this statute and its surviving effects in the modern law, discusses the Law of Property (Miscellaneous Provisions) Act 1989; other rules about form; and the law on writing, signature, and electronic commerce.
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This introductory chapter provides an overview of contract law and its application. A contract is an agreement made with intention that it will be legally enforceable. Contract law concerns issues regarding the formation of contracts; the sources, interpretation, and regulation of terms; when a breach takes place and the resulting consequences; and ways to escape a contract through vitiating factors, mistake, or frustration. The parties’ intentions are determined using an objective approach based on the standard of the reasonable person. A lot of contract law can be understood as default rules to apply when the parties have not been clear enough about their intentions. The law of contract also concerns foundational principles and mainly consists of common law rules. Many cases still give effect to the values of the classical model, which is based on the freedom and sanctity of contract, and a view that contracting parties are self-interested. The most significant recent development away from the classical model is the recognition of relational contracts and an implied obligation to act in good faith.
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This chapter discusses the duties and liabilities of the company’s auditors and its promoters. The duties of auditors derive from contract and tort. Promoters may also owe duties in contract and tort, but their more significant duties are imposed in equity, and map very closely the duties owed by the company’s directors.
Chapter
Jack Beatson, Andrew Burrows, and John Cartwright
English law recognizes only two kinds of contract: the contract made by deed, and the simple contract. A contract made by deed derives its validity solely from the form in which it is expressed. A simple contract as a general rule need not be made in any special form, but requires the presence of consideration, which broadly means that something must be given in exchange for a promise. This chapter examines contracts by deed and (simple) contracts for which writing is required.
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This chapter discusses the duties and liabilities of the company’s auditors. These duties derive from contract, tort and statute.
Chapter
This chapter sets out the remedies available to the buyer under a contract of sale. Before the Sale and Supply of Goods to Consumers Regulations 2002, these remedies comprised damages for non-delivery of the contract goods, specific performance, and damages for breach of warranty. In cases of breach of condition, the buyer generally has the right to reject the goods and repudiate the contract. Since implementation of the 2002 Regulations, a buyer who deals as consumer has additional remedies of repair, replacement, reduction in price, or rescission. These additional consumer remedies are discussed after a consideration of the remedies that are available to all buyers, including consumers, beginning with those remedies granted to a buyer where the seller fails to deliver the goods, or fails to deliver on time. Certain consumer contracts entered into after 1 October 2015 are governed by the Consumer Rights Act 2015, which is also discussed.
Chapter
This chapter introduces some of the key ideas that will be encountered in the rest of the book, such as what is required for a contract. It touches upon the everyday role of contract, and that, although the book is heavily concerned with case law, contract disputes are often resolved without resort to the courts. It also introduces the idea of the evolution of contract law with the changing nature of society: the limitations placed on the use of an idea, such as ‘freedom of contract’, through recognition of the impact of inequality of bargaining power. Additionally, it alerts the reader to the impact of the EU and Brexit.
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This chapter considers two principal questions: firstly, may a person who is not a party to a contract acquire rights under it? Secondly, can a contract impose duties on a person who is not a party to it? With some exceptions, the common law answered ‘No’ to both. A contract between A and B cannot be enforced by a third party, C, even if the contract is for the benefit of C. Nor can a contract between A and B impose burdens on C. Following the Contracts (Rights of Third Parties) Act 1999 there is now a statutory exception to the principle that C acquires no rights under a contract between A and B. Under this Act, a third party might be able to enforce a term of the contract if the contract expressly provides that they may, or if the relevant term purports to confer a benefit on them.