Contract Law

GP Paper Structure and Contract Basics

  • GP paper consists of two questions: contract and tort.

  • Contract questions have seen innovation and revisiting of older question styles.

  • Basic areas in contract law include formation, extrinsic evidence, avoidable contracts, void agreements, and discharge of agreement.

  • Damages are an important part of contract law.

Question Types

  • Each question (contract or tort) is generally divided into three parts.

  • Part one or sometimes part C is usually a statement of claim, requiring advising the plaintiff. Focus is on statement of claims only, advising the plaintiff.

  • One common question type asks to advise the client (plaintiff) on possible causes of action against the defendant.

  • Another aspect of the same question could involve damages the plaintiff can claim.

  • Questions may also explore the differences arising if the defendant refuses to settle or is unable to supply contracted goods.

  • Another question type assesses if the plaintiff has sufficient evidence to support their claim, as seen in the 2023 paper.

  • If sufficiency of evidence is questioned, another part may ask about remedies or damages available against the defendant, assuming liability is established.

  • Examine the July 2024 contract paper for question drafting and mark allocation, which focused more on remedies than causes of action.

  • Prepare for the GP paper with an exam-focused approach.

Exam Approach

  • If a written contract exists, there is no need to discuss offer, acceptance, or consideration.

  • If no written contract exists, all elements of contract formation (offer, acceptance, consideration, intention) must be demonstrated.

  • The approach involves acting as a guideline for answering questions.

  • Questions may involve possible causes of action and potential defenses.

  • Emphasize key points based on given facts.

  • Always identify the parties (plaintiff and defendant) at the outset, especially when they are represented by names like X, Y, Z.

Causes of Action and Key Legal Sections

  • With a written agreement, Section 10 of the Contract Act can be cited to validate agreements made with free consent.

  • Verbal contracts are also valid unless the law requires them to be written.

  • Breach of contract terms or outright refusal to perform are potential issues.

  • Without a written contract, derive terms from phone calls or other communications.

  • Oral contracts are enforceable, except where writing is legally required.

  • Verbal terms alongside a written contract may form a collateral contract.

  • Implied terms can arise, for example, in sales of goods.

  • Sections 15, 16, 17, and 18 relate to issues such as coercion, economic duress, undue influence, fraud, and misrepresentation.

  • Misrepresentation and fraud are traditionally important; undue influence (Section 16) has also been tested recently.

  • Sections 21-23 address mistakes.

  • Lawful consideration is addressed in Sections 24 and 25.

  • Section 30 deals with uncertain agreements.

  • Frustration is covered in Section 57.

  • Always consider potential defenses the defendant can raise.

Proving Breach of Contract

  • Prove the breach of contract terms on a balance of probabilities.

  • Establish a valid and existing contract.

  • Show that the client (plaintiff) performed their part of the contract or was ready, willing, and able to do so.

  • Demonstrate that the defendant breached the contract terms.

  • Prove that the client suffered damages as a result of the breach.

Elements of a Valid Contract

  • If a written contract exists, its signing implies both parties agree to its terms.

  • Contracts can be formed verbally or through document exchange (e.g., email).

  • A formal written contract simplifies proof.

  • For oral or written correspondence contracts, demonstrate offer, acceptance, consideration, and intention to create legal relations.

  • Offer is referred to as a proposal in the Contracts Act.

  • Check Section 2 of the Contracts Act for the definition of a proposal.

  • Refer to cases like PrestonCorporationPreston Corporation, CarlilvsCarbolicSmokeballCarlil vs Carbolic Smokeball, and AffinCreditAffin Credit.

Offer vs. Invitation to Treat

  • Differentiate between an offer and an invitation to treat.

  • An invitation to treat invites offers; it is not an offer itself.

  • Refer to cases like GibsonvsManchesterCityCouncilGibson vs Manchester City Council, MJFrozenFoodvsCeyland′sinDhyanBrahatMJ Frozen Food vs Ceyland's in Dhyan Brahat, PartridgevsCrittendenPartridge vs Crittenden, PharmaceuticalSocietyofGreatBritainvsBootsPharmaceutical Society of Great Britain vs Boots, and FishervsBellFisher vs Bell for examples.

Communication and Revocation of Offer

  • Offers need to be communicated, as per Section 4(1) of the Contracts Act.

  • Check if the offer has been revoked.

  • Section 4(3) states that revocation communication must be complete and known to the proposer of the offerer.

  • Section 6 details situations for offer revocation, including communication of notice, lapse of time, failure of a condition precedent, and death/mental disorder of the promisor.

  • See EvergoodPlantationvsKobianChengEvergood Plantation vs Kobian Cheng where a conditional offer lapsed when the condition was unmet.

Acceptance

  • Mode of acceptance is covered by Section 2(b) along with Section 7.

  • Acceptance must be absolute and unqualified.

  • Qualified acceptance becomes a counter offer.

  • If a condition in the acceptance is satisfied, the contract is valid even if the acceptance was conditional.

  • Communicate acceptance as per Section 4(2).

  • Postal rule applies; see IgnatiusvsBellIgnatius vs Bell, where acceptance was complete on a particular date.

Counter Offers and