1、Outcome 2,2.1 Introduction,Explain the law of contract Knowledge and/or skills Essentials of a contract Definition of a contract Rules of offer and acceptance Illegality and Errors including misrepresentation Performance of Contract or Breach leading to termination Remedies for Breach of Contract,Ev
2、idence requirements,Evidence for the knowledge and/or skills in this Outcome will be provided on a sample basis. This evidence may be presented in response to a specific question or questions. Each candidate will need evidence to show that they can, with reference to a particular aspect of the law,
3、provide an accurate and clear explanation of the legal situation, as it is contextualised within the case study, or case studies.,Briefing a case,Case summary: case name and citation courts judicial history case facts issues holdings reasonings decisions concurring opinion dissenting opinion,2.2 Wha
4、t is a Contract,Definition: see p. 116. A more brief one: A contract is an agreement which legally binds the parties. There must be an agreement legally recognized as such. The parties concerned must intend that a legal relationship arises between them. There is consideration for the contract or the
5、 contract is made under seal. The parties must have the legal capacity to enter a contract.,2.3 Essential of a Contract,Agreement Agreement between the parties to it on all material aspects. If an offer is made then the acceptance must meet the offer. -Offer: a definite promise to be bound on specif
6、ic terms. -Acceptance: an unqualified agreement to the terms of the offer. Examples: page 117 and 118.,Hyde v Wrench (1840),Fact: the owner of an estate offered to sell for 1000. The buyer made a counter-offer of 950. The seller did not accept this offer. The buyer then offered the original 1000, bu
7、t the seller did not accept.,Hyde v Wrench (1840),Issue: Is there any contract between Hyde and Wrench?,Hyde v Wrench (1840),Decision: The court ruled that there was no contract in any of this; neither party had made an offer that the other accepted.,Hyde v Wrench (1840),Analysis: The case demonstra
8、tes that Acceptance Of Offer that one had previously rejected will not necessarily allow a Contract to be formed.,2.3 Essential of a Contract,At Least Two Parties Legal Obligation There must be some material loss or gain involved. A personal or social obligation will not usually be classed as a Lega
9、l Obligation.Example: page 119 Task 6: page 120.,No intention to create legal relations,Domestic agreement Social agreement Agreement binding in honor only Gambling or wagering agreement,Types of agreements,Intention to create legal relations,Intention to create legal relations,Social and domestic a
10、greements (Presumption parties do not intend legal relations,Business or commercial agreements (Presumption parties do intend to create legal relations,Commercial agreements,Courts will presume that agreements arrived at in a commercial context are intended to be legally enforceable.The presumption
11、can be rebutted.CASE: Jones v Vernons Pools Ltd 1938,Jones v Vernons Pools Ltd 1938 2 All ER 626,Facts: VP ran a football pools operation in the UK. During a dispute the court had to determine whether a contractual relationship existed between VP and each entrant.,Jones v Vernons Pools Ltd 1938,The
12、following appeared on each coupon:“It is a basic condition of the sending-in and acceptance of this coupon that it is intended and agreed that the conduct of the pools and everything done in connection therewith and all arrangements relating thereto (whether mentioned in these rules or to be implied
13、) and this coupon and any agreement or transaction entered into or payment made by or under it shall not be attended by or give rise to any legal relationship, rights, duties or consequences whatsoever or be legally enforceable on the subject of litigation, but all such arrangements, agreements and
14、transactions are binding in honour only.”,Jones v Vernons Pools Ltd 1938,Issue: Is there a commercial contract? Is there a relationship that is binding?,Jones v Vernons Pools Ltd 1938,Decision: Because the relationship is clearly commercial there is a presumption that the relationship is binding. Ho
15、wever, the court held that the clause in the coupon was sufficient to rebut the presumption. Therefore, there was no contract between VP and the entrants.,Ferguson v Littlewoods Pools Ltd 1997 SLT 309,Members of a football pools syndicate thought that they had won a 2.5 million jackpot on the Little
16、woods pools, but then discovered that the Littlewoods collector had never passed their coupon on to the company and had stolen their stake-money. Littlewoods refused to make a pay-out. The collector was convicted of theft. The syndicate members raised an action against Littlewoods. but it was dismis
17、sed as irrelevant by Lord Coulsfield on 28 March 1996 (Ferguson v Littlewoods Pools Ltd 1996 GWD 21-1187; 1997 SLT 309).,Ferguson v Littlewoods Pools Ltd 1997 SLT 309,Lord Coulsfield held that Different considerations played a part in the development of the rules with different emphases in different
18、 cases. In some cases the ground of decision is that the parties cannot have intended that the transactions should have legal consequences. In others it was beneath the dignity of the court to enter into the question who won or lost a particular wager, and in others stress is put on the fact that su
19、ch transactions do not have commercial significance, and it may be that, in some of those cases, a general disapproval of gaming or wagering can be detected.,Ferguson v Littlewoods Pools Ltd 1997 SLT 309,The primary ground of dismissal was the doctrine of sponsiones ludicrae, i.e. that a debt arisin
20、g from a gambling transaction such as a football pool is unenforceable in the courts (McBryde, Contract, 577-581).,Agreements that can not be enforceable,agreements binding in honour only domestic agreementsgambling or wagering agreementssocial agreements,Validity factors,Form: a minority of contrac
21、ts have to be made in a particular form. Genuine consent: e.g. not by duress or by mistake. Capacity: some persons only have limited capacity to enter into contract.,Validity factors,Content:a contract must be complete and precise in its terms. Legality: the courts will not enforce a contract which is deemed to be illegal, immoral or contrary to public policy.,
