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 , , and .
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 , , , , and 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 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 , where acceptance was complete on a particular date.