Week 1 - Lecture notes 1 PDF

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Week 1...

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Week 1 Formation: Introduction to Contracts; Overview of Contract Remedies Legal Problem Solving Model I - Issue L - Law A - Application C - Conclusion

Key Concepts and Terms Significance of Contract Law fundamental to the study of general law General principles that are applicable to all contracts Intersect with daily life Employment, renting, investment, insurance, etc

Sources of Contract Law Common Law Court decisions Precedent Equity Decided by courts in an equitable jurisdiction Statute Legislation

International law & treaties can cross borders, although it has to be ratified by domestic law Hierarchy of Sources Can the relevant law be found in Statute? If not, the law will be in Common Law Principles Common Law principles may be qualified by Equity (in certain situations equity may prevail) Definitions of Contract Law of Obligations (torts and contract) Torts Obligation is found in a legal rule Contract Obligation is found in an agreement Most contract definitions based on concepts of Promise and Agreement A contract may conveniently be described as “an agreement between two or more parties that a court will enforce" Courts enforce them by providing a remedy Objective Test (reasonable person” test) Private law

Classification of Contracts Promissory Intent Bilateral Contracts Promise for a promise Offeror/offeree Sell car for 25k// buy car for 25k doesn’t depend on any performance, just on exchange of promise Unilateral Contracts Act for a promise Performance of an act specified in the offer No contract until the act is performed Reward poster

Formation Express Contracts Express words/conduct of parties Objective test — reasonable person test Exercise the judgement of an objective reasonable person Implied Contracts Clarke v Dunraven [1897] AC 59 Clarke and the Lord Dunravan (the Earl of Dunraven) entered yacht race pursuant to Yacht Racing Association rules which provided that if a yacht was damaged as a result of negligence, the negligent party must pay damages. Lord Dunraven’s yacht (the Valkyrie II) was damaged by Clarke's yacht (the Satanita) as a result of the latter's negligence (the collision also killed a crew member). Issue: Did Dunraven have to pay pursuant to the Yacht Racing Association rules? Held: By entering the race on the YRA terms the competitors entered into a contract with each other on those terms – consequently Dunraven had to pay. Simple Contracts Requires no special form to be created Verbal, in writing etc Exchange of value / consideration All elements must be satisfied Limitation periods Formal Contracts Requires a special form to be created (e.g., a deed, letter of credit, court order) Solemn promises Limitation periods Overwhelming majority are simple

Enforceability Valid contracts Elements of formation satisfied Void Contracts No contract ‘ab initio'a No agreement was ever created

Voidable Contracts A valid contract that can be cancelled Unenforceable contracts May be valid but cannot be enforced Illegal Contracts Purpose is illegal

Performance Executed and executory contracts One that has been performed vs one that has yet to be performed Remedies - the enforcement of contracts Common Law Damages Monetary compensation for loss Not designed for punishment Measure of damages by comparing the position of plaintiff is in by where the plaintiff should’ve been in Remedy as of right — court must give you if you’ve proved loss Nominal damages if no loss, only breach of contract Equity Specific Performance Enforcing a positive contractual obligation Confined to contracts (not torts) Injunction Enforcing a negative contractual obligation Refrain from doing something Discretionary remedies, not as of right Rescission Rectification

Remedies not dependent on contraact Tort (deceit or negligence) and Statute (misleading or deceptive conduct)...