⇒ A contract is a legal enforcement of agreements and promises OR an undertaking by someone (usually this is a unilateral 'promise, pledge, or engagement' to use Black's Law Dictionary definition).
⇒ Not all agreements are contracts.
⇒ A contract requires offer, acceptance, intention to create legal relations, and consideration.
⇒ In a unilateral contract, there is just one party e.g. if you lose your pen and offer a general reward to anyone who finds it, you are the only one bound but it is still a contract.
⇒ In a bilateral contract, there are two parties making a promise to each other.
⇒ In a trilateral contract, there are three parties making promises to each other.
⇒ In a multilateral contract, there are more than three parties making promises to each other e.g. a treaty.
⇒ Form:
⇒ Nature:
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⇒ The doctrine of objectivity means that the law is NOT concerned by what is in your mind but by what you have actually said or done.
⇒ Therefore subjectivity is rarely considered.
⇒ For example, in Crest Nicholson Ltd v Akaria Investments Ltd [2010] Sir John Chadwick said that "the question is 'what did the parties intend by the words used in the agreement which they made'" i.e. the only relevant thing for the court is what has actually been said/done and not what was in the head of either party.
⇒ In Storer v Manchester City Council [1974], Lord Denning said "In contracts you do not look into the actual intent in a manβs mind" but at "what he said and did" → a contract is formed when "to all outward appearances" that a contract has been formed
⇒ Also see the case of Scriven Bros & Co v Hindley & Co [1913].
⇒ Freedom of contract (i.e. the freedom to make a contract): if you are of a certain age and sound mind you can enter a contract freely.
⇒ Freedom from contract (i.e. the freedom not to make a contract): if you are forced to make a contract, the contract is invalid (e.g. if someone points a gun at you and tells you to sign a contract). If you enter a contract freely then you are bound by it.
⇒ Public policy: a contract is invalid if the law does not enforce it. For example, if you smuggle drugs into another country and it was agreed you would get Β£20,000 for doing so, but then you were not paid, the law will NOT enforce that contract.
⇒ Note the growing influence of unequal bargaining and fairness particularly in legislation.
⇒ There is no requirement of any form (Beckham v Drake [1841]) i.e. a contract can be made orally, in writing, by conduct, etc.
⇒ A contract for the sale of land, or of any interest in land, is void unless it complies with the Law of Property (Miscellaneous Provisions) Act 1989, section 2 i.e. it must be made in writing.
⇒ Bill of Sale (Bill of Sales Act 1882):
⇒ Bill of Exchange (Bill of Exchange Act 1882):
⇒ Consumer hire purchase and credit contracts (Consumer Credit Act 1974):
⇒ A contract of guarantee is a contract to perform a promise (or discharge the liability) of a third party in case he/she fails to perform the contract themself.
⇒ It, therefore, makes the third party a second debtor e.g. if you don't pay for your tenancy the guarantor will pay or fulfil the contract for you.
⇒ Whereas a contract of guarantee makes a third party a second debtor, indemnity is where the guarantor becomes the primary debtor.
⇒ The law tries to adapt to new technology.
⇒ The Electronic Communications Act 2000 (around the time email started) established that you can have electronic signatures:
⇒ The general rule is that no particular form is required to cancel a contract.
⇒ In other words, if you want to cancel a contract you can do that in any form e.g. orally, writing, etc.
⇒ If the law requires a certain form to make a contract you must use the same form to change that contract.
⇒ For example, in McCausland v Duncan Lawrie Ltd [1997] it was held that if you try to change/vary a contract of land it must be done so in writing (writing is also required to make a contract of land, too).
⇒ However, if the law does not require a particular form for a contract and someone wants to change that contract they can do so orally e.g. Berry v Berry [1929].
⇒ Firstpost Homes Ltd v Johnson [1995] (Gibson LJ):
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