Contract law is typically the first substantive module on a UK law degree, and problem questions follow a logical sequence that mirrors the life cycle of a contract.
1. Formation
Start by asking: Is there a valid contract?
- Offer: Distinguish from invitation to treat (Pharmaceutical Society v Boots [1953]; Fisher v Bell [1961]). Has the offer been communicated? Has it been revoked (Byrne v Van Tienhoven (1880))?
- Acceptance: Is it a mirror image of the offer (Hyde v Wrench (1840))? Has it been communicated (Entores v Miles Far East [1955])? Consider the postal rule (Adams v Lindsell (1818)).
- Consideration: Is it sufficient (Chappell v Nestlé [1960])? Is it past (Re McArdle (1951))? Does the existing duty rule apply (Stilk v Myrick (1809) vs Williams v Roffey Bros [1991])?
- Intention to create legal relations: Presumed in commercial contexts (Edwards v Skyways [1964]); rebutted in domestic/social contexts (Balfour v Balfour [1919]).
2. Terms and Representations
If a contract exists, identify its terms. Is the statement a term or a representation? Consider the factors in Oscar Chess v Williams [1957] and Dick Bentley v Harold Smith [1965]. Are any terms implied by statute (Sale of Goods Act 1979, Consumer Rights Act 2015)?
3. Vitiating Factors
Check whether the contract is voidable due to:
- Misrepresentation: Fraudulent (Derry v Peek (1889)), negligent (s.2(1) Misrepresentation Act 1967), or innocent
- Duress: Economic duress (DSND Subsea v Petroleum Geo-Services [2000])
- Undue influence: Actual or presumed (Royal Bank of Scotland v Etridge (No 2) [2002])
- Mistake: Common (Bell v Lever Bros [1932]), mutual, or unilateral
4. Breach
Has a party breached the contract? Classify the term as a condition (Poussard v Spiers (1876)), warranty (Bettini v Gye (1876)), or innominate term (Hong Kong Fir Shipping v Kawasaki [1962]).
5. Remedies
| Remedy | Availability | Key Authority |
|---|---|---|
| Damages | Available as of right for breach | Hadley v Baxendale (1854) |
| Specific performance | Discretionary; typically for unique goods/land | Beswick v Beswick [1968] |
| Rescission | For misrepresentation/vitiating factors | Subject to bars (affirmation, lapse of time) |