English Contract Law/Introduction
English Contract Law |
Contract Law is one of the central subjects that form the Law of England and Wales. It focusses on the rules for legally binding agreements and all types of contracts and parties. A thorough comprehension of the subject is essential because the principle of enforcing agreements is vital for the stability of society and has an impact on individuals and businesses, for example the use of basic contractual principles in other areas of law such as the supply of services, the sale of goods, and employment law. This book concentrates on the rules and factors which govern the formation, content, enforceability, and termination of a contract. Contract law has a long history, with major developments that took place during the nineteenth century, rooted in the principles of freedom of contract and laissez faire. |
SourcesContract law has three main sources: case law, legislation, regulations (often building on European Union directives), for example:[1]
ElementsA contract has five essential elements, which must all be present at the same time:
AgreementAgreement is a difficult element to define without giving examples. Consider the following types of agreements, some of which are legally enforceable and others are not:
How does the law determine the existence of an agreement? There are two general ways of approaching this question: subjective (the parties intentions) and objective (the outward evidence). The law follows the objective approach and looks at the outward evidence, rather than just what the parties were intending, because sometimes an agreement may not be apparent from their intentions alone. This approach was confirmed recently in RTS Flexible Systems Ltd v Molkerei.[3] |
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