Contract law Lectures: Introduction

Contract a way to regulate transactions (commercial + personal)
-Transactions vital to our way of life
-Contract law pivotal to our lives

-Contracts do not need to be in writing.
-They do not need signatures.
99% of transactions are based on contract that does not require written form.
Contract exists whether the piece of paper exists or not.
Contract is a relationship (not a bit of paper)à of promises and exchange which the law will recognise

-However, when asked to prove this relationship, one often produces paper as evidence for this.

Civil Obligations
-Contract
-Tort

Civil Obligations à Obligations imposed by the state upon the individual.
Contract Obligations à Self-imposed obligations (eg. deliver goods for a price.
You are obliged to deliver).
If someone chooses to make these obligations, they have made a contract.

Civil Obligations in Tort- In the law of tort, the benchmark of civil obligations is reasonableness (‘black-ice causes a crash’, explanation possible/ You may not be guilty of tort).
Contract Law – ‘Even if you do your best to fulfil the contract, but not fulfilling it’ –excuses of no interest/ still a breach of contract, objectively speaking.

Regulation of self-imposed obligation
Contract at the root of :
-Employment
-Sale of goods
-Provision of services
-Insurance
-Conveyancing
-Banking

Essentials of a Valid Contract Contracts are an agreement, but not all agreements are contracts.
1) Agreement à Not as simple as it sounds -> car selling- 2 cars- a misunderstanding of the product under what circumstances would the legal system say you were agreed.
2) Intention à Intention that it would be legally binding
Presumption in law àsocial arrangements are not intended to be legally binding, subject to contrary arrangements.
3) Consideration à purely gratuitous gift is not enforceable, ie birthday gift.
However, if ‘someone giving up a couple of hours every Saturday afternoon in exchange for a car’ then there has been a contractual consideration.
-( shown that you given something in exchange -> law does not compare values of each
thing exchanged).
4) Capacity àcapable of making a contract/ eg. below age 18, restricted ability
5) Consent à Contract can be made invalid if it can be proven that you were co-erced (lie, trick, falseness), no true consent.

If any of these are missing or corrupt, you do not have a contract.
Legal system will not support agreements which are themselves illegal.
If the subject matter in which you wish to litigate is corrupt, you will have a problem.

When is an agreement an agreement?
Jones vs Associated Tunnelling (lives and works in the North Midlands)
Joined the firm in 1964/ Chatterley Colliery (2 miles from his home)
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Given a Statutory statement (signed)
“Chatterley”- Jones works in Chatterley according to: Jones
:Employers
:Solicitors
-coal sheath expire, workers move on

-1969 /Henry Heath Colliery (12 miles) from his home (voluntarily relocated)
-1973 /Fresh statement of terms –but not signed
‘Work in such places in the UK, where my employers may decide from time to time’
-1976- further statement of terms/ ‘work were we tell you’ not signed
Where is Jones’ place of work of employment now?
-1980 Florence Colliery (2 miles)
Jones refused to move

Jones at an age where he could qualify for redundancy.
Redundancy ‘when there is no more work at your place of Employment’.
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Jones wanted redundancy pay, but he was sacked.
-Claimed unfair dismissal/ redundancy.
Issue: What has been agreed about his place of employment?

Verdict: Industrial tribunals- ‘no other express terms have been agreed.
Only historic document is now redundant.
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Employers tried to verify the terms by imposing terms which were never agreed to by employees of Trade Unions
Implied terms. He was willing to move locally.
‘local community terms’ – terminology not in any of the documents or language, but implied terms.
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tribunal held this was agreed.
Therefore he walked out was not made ‘redundant’
It was held that he was fairly dismissed.