Public Law vs Private Law and Contract Law Overview
Difference Between Public Law and Private Law
Public Law
Refers to law that involves the government and its relationships with individuals.
Involves the state, meaning any legal matters that require government intervention or regulation.
Types of public law include:
Administrative Law: Concerns rules and regulations set by government agencies.
Constitutional Law: Governs the structure of government and its relationship with individuals.
Criminal Law: The state prosecutes individuals who have committed offenses against society at large.
Focus on the state's responsibility to protect society through prosecution.
Environmental Law: Regulations concerning the protection of the environment which also implicates societal interests.
Private Law
Deals with relationships between individuals.
Includes legal matters that do not involve government entities but rather private parties.
Legal personality plays a key role as individuals and corporate entities (such as companies) can become parties to contracts.
Key areas include:
Contract Law: Governs agreements made between individuals or entities.
Torts: Legal wrongs causing harm to individuals.
Restitution: Addresses situations where one party is unjustly enriched at the expense of another.
Key Distinctions:
Impact on Society:
Public law affects society as a whole, for example, environmental permits that influence local communities.
Private law primarily concerns the individual parties involved without broader societal impact.
Contracts
Nature of Contracts:
Contracts are agreements that create binding obligations between parties.
A contract typically involves at least two parties agreeing on obligations and rights.
Common Examples:
Purchasing a product (e.g., buying a handbag for £100).
Legal Implications:
Breach of contract results in legal remedies, which may include damages (compensation).
Contract Formation
Formed through a clear offer and acceptance of that offer.
Key Elements of a Contract:
Offer:
Proposal made by one party (offeror) to another (offeree) to enter into a contract.
Acceptance:
The offeree must express unequivocal consent to the proposed terms of the offer.
Consideration:
Each party must exchange something of value (obligations).
Intention to Create Legal Relations:
Parties must intend their agreement to be legally binding.
Objective Theory of Contract Law
Contracts are assessed based on objective evidence rather than subjective intentions (the Objective Theory of Contract Law).
Manifestation of Intent:
The intentions of the parties are interpreted based on their conduct and expressed terms, not their internal thoughts.
Case Example: Smith and Hughes:
Involved a farmer mistakenly purchasing the wrong type of oats. The court ruled that the agreement stood based on objective evidence of agreement despite the farmer's subjective beliefs.
Mistake in Contracts
Mistakes in Contract Formation:
Courts differentiate cases of mistake based on whether they are evident and align with established trade customs. One such notable case was the sale of Argentinian hare skins, where a mistake based on price per pound versus price per piece led to a contract being invalidated.
Case Studies
Storer v Manchester City Council:
Clear terms established an offer for the sale of a council house, which required simply a transfer date to finalize.
The court held that the intention to be bound was evident from the conduct of the parties involved.
Gibson v Manchester City Council:
Unlike Storer, Gibson’s situation lacked a formal offer from the council, as no clear contractual agreement was reached, merely expressions of interest.
Display of Goods and Invitations to Treat
Merely displaying goods (e.g., in shop windows) is considered an invitation to treat rather than a binding offer.
Case Example: Fisher v Bell:
Highlighted that simply placing goods for sale does not constitute an offer. Actual offers occur when the customer expresses intent to purchase.
Acceptance of Offers
General Rule of Acceptance:
Acceptance must be clear, unconditional, communicated to the offeror, and adhere to the terms of the offer.
Acceptance by conduct is valid in unilateral contracts (e.g., reward offers).
Postal Rule:
States that acceptance is effective when posted, even if not received by the offeror yet.
Exceptions to Postal Rule:
Only valid where it is reasonable to use post as a method of acceptance and if the offer was made through post.
Knowledge of Offers
Ignorance of an offer typically prevents acceptance unless conditions change (as in cases involving rewards).
Case Example: Williams v Cawley:
A widow sought a reward for turning in her husband’s murderer, and the court ruled she was entitled to the reward despite her motives.
Summary
Contract Law Principles:
In contract law, a clear framework exists for distinguishing types of law (public vs. private) and the essentials of forming contracts, including offers, acceptance, and the legal implications of mistakes in offering. Understanding these principles is essential for navigating legal transactions effectively.
Invitation to Treat:
Recognising the distinction between invitations to treat and actual offers is key for parties entering into commercial agreements, as well as being aware of remedies in cases of breach, including damages and other forms of compensation, which will be addressed later in the course.