Topic 12 Lecture 1

1. Principles of Business
Topic: Introduction to Law (2)
Introduction to Contract Law
Stage 2 Lecture 15

2. Key topics / learning outcomes
of this lecture
By the end of this session, you will be able to:
• Explain what a contract is
• List the essential elements of a binding
contract.
• Demonstrate understanding of the limitations
of freedom to contract.
2

3. The story so far....
• What law is...
• Classifications of law...
• How laws are made...
• How laws are enforced...
3

4. 4
Company
Law
Employment
Law
Property
Law
Contract
Law
Tort
Law
IP Law
Areas of
Law
impacting
on
Business

5. How many contracts
have you made today?
5

6. How many other
agreements have you
made?
6

7. 7
What makes an
agreement legally
enforceable?
Consideration
Intention
Not necessary
to be in writing

8. 8
Why is Contract Law
Necessary?
Predictability
of bargains
Stable
economic
development

9. 9
English Courts host
contractual
disputes from
around the globe

10. 10
Remedies for
breach of contract
Damages Specific performance
To put C back in the
An order to the D to
position s/he would
fulfil his/her obligations
have been in, had the
under the Contract.
Contract been
performed
Usual remedy Equitable remedy
Less common

11. Contract Law
• What is a contract?
• How is it formed?
• Contractual terms
• Termination of contracts
• Remedies for breach
• Vitiating factors (aka excuses)
11

12. A contract can:
12
Anticipate
future
problems
Allocate risk
Limit or exclude
liability

13. Contracts are voluntary but:
There are limits, e.g.
• Unequal bargaining power
• Implied terms
• Onerous or unusual terms
• Special relationships
• Public policy
13

14. A contract
must have:
14
Offer
Acceptance
Consideration
Intention to create
legal relations

15. Two further important points:
15
Privity Capacity

16. Summary
• Contract = legally enforceable
agreement
• Essential to functioning market
economy
• Terms can allocate risk and
anticipate problems
• Limitations to freedom to contract
• Four essential elements
16

17. Essential work for next week
• Please consult the OLE for details of:
– Essential readings*
– Seminar/workshop preparation work*
– Recommended further readings
– Any additional learning
* Essential readings and preparation work must always be completed in time
for the next session
17

18. End of presentation
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