English contract law

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English contract law concerns the law of contract in England and Wales.

Contents

[edit] Types of contract

There are principally two forms of contracts in English law; a contract Under Seal and a Simple contract. An Under Seal contract is signed with rigorous formalities and is usually present in a gratuitous contract or in a contract for the transfer of an immovable (property). A Simple contract does not require any formalities, nor does it have to be written. Simple contracts demand the contracting parties to do or not do something.

A contract will become null in three instances; Error (if made on the essential quality of the contract), Misrepresentation of the facts (done either in good faith or bad faith), Duress.

A contract in English law will be declared illicit if it is prohibited by an existing English law (i.e. if the contract is contrary to the freedom of commerce). It will also be unlawful if it goes against English public order.

[edit] Agreement

Agreement in English contract law is generally considered in an objective manner by English courts.

[edit] Consideration

The Doctrine of consideration exists to prevent gratuitous promises from being contractually enforcable.

[edit] Promissory Estoppel

Lord Denning in the judgement of Central London Property Trust Ltd v High Trees House Ltd (1947) presented the doctrine of promissory estoppel which challenges the doctrine of consideration

[edit] Expressed and Implied Terms

In English law terms can be incorporated by signature, by reasonable notice and by a prior course of dealings.

[edit] Mistake

Where the one or both of the parties made mistake on the terms, subjects or the persons in a contract. Mistakes can be of common or mutual.

Res Sua

-Where the subject matter already belongs to oneself

-Cooper v Phibbs


Res Extincta

-Where subject matter does not exist

-Couterior v Hastie

-McRae v Commonwealth Disposal Commission

-s.6 of Sale of Goods Act 1979


Mistake as to person

-Mistake as to attributes or mistake as to identity?


(a) Face to face (easier to establish mistake compared to not face to face)

-Phillips v Brooks

-Lewis v Averay

-Ingram v Little


(b) Not face to face

-Cundy v Lindsay

-King's Norton Metal

-Shogun Finance v Hudson


Where the parties intend to contract on different terms

-Raffles v Wichelhaus

-Smith v Hughes

-Horton v Colin & Shields


Common mistake as to quality

-Bell v Lever Bros

-Leaf v International Galleries

-Galloway v Galloway

-Scott v Coulson

-Nicholson & Venn v Smith - Marriott


Non est factum

-This is not my deed.

-General rule: Bound by what you sign.

-Conditions to establish (i) Misrepresented (ii) Not careless (iii) Document substantially different from what you thought it was

[edit] Unfair Contract Terms

The 1977 Unfair Contract Terms Act regulates unreasonable unfair contract terms such as exclusions for liability.

[edit] Exemption clauses

[edit] Misrepresentation

[edit] Duress and Undue Influence


[edit] Breach of Performance

[edit] Frustration

[edit] Restitution


[edit] See also

  • Contract Law Lessons by Max Young [1](to register is obligatory but free)

[edit] Notes