Preview

Contarct Law Essay

Best Essays
Open Document
Open Document
1571 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Contarct Law Essay
The English law of contract has developed over hundreds of years of history. As society has developed it has been necessary for the law of contract and the law in general to develop in order to reflect the needs of society and varying commercial landscape that is being experienced at that point in societal development.

In this essay I propose to discuss the objective view of contract law in an ever developing commercial world that relies more on contracts than perhaps in the past and the need for it to be fair to both parties and interpret the true intention of the contracting parities. The essay will also look at the development of various pieces of statutory law albeit very generally. Further the need to promote fairness and objectivity in dealing with contract disputes underpins the basic principles of English contract law.

The objective test in contract law is common with most European legal systems. This was first, set out in English law in the case of Smith v Hughes[i]. This case I would argue provides a good starting point for dealing with cases from the objective standpoint, particularly the judgment of Blackburn J where he states; ‘If, whatever a man’s real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other parties terms.;[ii]

Thus, by way of contrast the subjective test is used to establish the actual intentions of the parties contracting and the objective test therefore ascertains what the parties actually said and did and not what they intended to say or do.[iii] The argument which supports the use of the objective test stems from the commercial justification namely ‘that great uncertainty would be caused if a person who appeared to have agreed to certain terms could escape liability



Bibliography: Kramer, Adam‘Common Sense Principles of Contract Interpretation (and how we 've been using them all along)’ Oxford J Legal Studies (2003) 23 (2): 173 Cases Smith v Hughes (1871) LR 6 QB 597 Statute

You May Also Find These Documents Helpful

  • Powerful Essays

    Case Brief Hanigan V.

    • 1339 Words
    • 6 Pages

    In Brambles, the observations of Mchugh contend, ‘that the existence of the contract depends upon what reasonable people in the shoes of the parties would understand the effect of the conduct to be’. Noting that the determination of the question relies upon whether reasonable people would infer from the conduct an apparent intention of the parties to be bound. No, the decision of the court would remain the same through a subjective approach as it would an objective approach. The consideration of opinions, beliefs and intentions when determining a decision is important, requiring the party to take steps a reasonable person in given circumstances would take. The…

    • 1339 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    In week four’s theory practice, we reviewed the case scenario of Big Time Toymaker vs Chou in regards to determining the validity of a contract. As we’ve reviewed, an agreement or mutual assent is of course essential to a valid contract but the law imputes to a person an intention corresponding to the reasonable meaning of his words and acts. If his words and acts, judged by a reasonable standard, manifest an intention to agree, it is immaterial what may be the real but unexpressed state of his mind (Melvin, 2010).…

    • 848 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    As the world evolves through time, the business industry keeps on developing, indicating a fast growth rate of the numbers of merchants around the globe. Each seller will try to sell their goods and services more than their rivals and this merely shows that the current competition is extensive. Since sellers are eager to sell their goods and services, the buyer is often mislead and trapped into business dealings which the buyer’s have had to regret in the end. In order to succeed in their business dealings, the seller, in many situations, tend to withhold important information regarding the good or service they are selling. ‘Consider an injury caused by a product. A person consumes contaminated ginger beer. A child’s toy snaps and injures the child. The brakes in a car fail.’[1]…

    • 3375 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Chapter eight gives a good overview of the models presented in chapters nine, ten, and eleven. The way Entwistle presented five models which he called: “Enemies, Spies, Colonialists, Neutral, and Allies” (2016, p. 135). These five models are formed based on the variety of views that people hold about psychology and theology. Because people hold a variety of orientations in these two fields it creates many combinations of integration. The Enemy model is the view that psychology and theology cannot work together. The Spies model uses which ever orientation is most effective in the moment to promote the individual well-being, which means they are not committed to any certain belief system. Colonialists are strongly influenced by their commitment…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ch 9 Business Law

    • 1559 Words
    • 8 Pages

    In contract law, intent is determined by the personal or subjective intent, or belief, of a party. False, intent is determined by the objective theory of contracts…

    • 1559 Words
    • 8 Pages
    Good Essays
  • Good Essays

    This unit introduces you to the operation of the law of contract as it applies to businesses. You will also apply to consumer situations and consider the meaning and effect of standard form contracts.…

    • 1765 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Law 421 Contracts

    • 1070 Words
    • 5 Pages

    Contracts are an important part of everyday life. They are an essential part of business. As a student of a business law class, I will discuss in this paper several aspects of contracts. This paper will give a definition of a contract and the essential elements necessary to form a valid contract. It will briefly discuss breach of contract and the difference between a material breach and a nonmaterial breach of contract. Examples of legal and equitable remedies available for breach of contracts will be highlighted. Also, legal excuses for nonperformance or other grounds for discharge of contracts will be addressed. Finally, three types of common contracts personally and professionally encountered will be mentioned.…

    • 1070 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Unsw Legt 1710 Assignment 2

    • 3692 Words
    • 14 Pages

    Clarke, Bruce and Steve Kapnoullas, „When is a Signed Document Contractual? – Taking the “Fun” out of the “Funfair”‟ (2001) 1 Queensland University of Technology Law Journal 39 Enright, Christopher, „Studying Law‟ (The Federation Press, 1995) Gillies, Peter and Niloufer Selvadurai, Law of Contract (The Federation Press, 2009) Latimer, Paul, „Australian Business Law‟ (CCH Australia Ltd, 30 ed, 2010) Kapnoullas, Steve and Bruce Clarke, „Incorporation of Unusual or Unreasonable Terms into Contracts: The Red Hand Rule and Signed Documents‟ (2006) 11.2 Deakin Law Review 96 Khoury, Daniel and Yvonne Yamouni, Understanding Contract Law, (LexisNexis Butterworths, 2010) Pedan, Elisabeth and J W Carter, „Incorporation of Terms by Signature: L‟Estrange Rules!‟ (2005) 21 Journal of Contract 98 Schimmelfeder, Joern and Nicholas Pascoe, „Issues in the Drafting and Use of Exclusion Clauses in Commercial Agreements‟ (2006) Australian Construction Law Newsletter 1 < http://www.austlii.edu.au/au/journals/AUConstrLawNlr/2006/51.pdf> Seddon, N C and M P Ellinghaus, „Cheshire and Fifoot’s Law of Contract‟ (LexisNexis Butterworths, 8 ed, 2002)…

    • 3692 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Business Law Chapter 7-9

    • 809 Words
    • 4 Pages

    What is the objective theory of contracts? The intent is determined by objective facts, not by the personal or subjective intent, or belief of a party.…

    • 809 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    There are a few other tests that have been put forward for why a court would want to imply terms into a contract that is incomplete, or one that is complete but necessarily needs the input of the courts to even out the rights and obligations of both parties. Such that no one side bears the hazards, losses or gains of the transaction.…

    • 2699 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    MacQueen, H. L. and Thomson, J. M. (2007) Contract law in Scotland, 2nd ed., Edinburgh: Tottel.…

    • 1846 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    “Remember, remember always , that all of us, and you and I especially, are descended from immigrants and revolutionists.” - Franklin D. Roosevelt. Immigration is a major step in the process that all nations and states must undergo. Texas had many immigrant groups located in small pockets. These immigrants ranged from Germans to Anglo Americans. Immigrants who moved to Texas from foreign nations seeked for cheap land, freedom, wealth and a better lifestyle.…

    • 369 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Contract and Dina

    • 467 Words
    • 2 Pages

    Objective Theory of Contracts is defined as the parties’ assent is not judged by the subjective intent by each party, but by the objective intent that a similarity situated reasonable person would understand the parties to have.…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    A contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. When we look to see if a valid contract has been formed we look at the formation of the contract i.e. offer, acceptance, consideration and Intention to create legal relationships. This is an integral part of contract law. In England and most civil law countries existence of a contract depends on a theory that parties intend to be legally bound. The rule dates back to 1919’s where the court dismissed that a husband can be enforced to pay a fixed amount of sum he promised his wife. The doctrine of intention focuses primarily on whether both parties intend to be legally bounded by a contract. This area of law has become increasingly important over the year especially when there is no clear indication or mirror image in writing that the parties have a contract in place. It’s a matter of policy otherwise commercial agreements won’t be enforceable and doing business without a contract in place will be difficult and will raise doubt/fear among parties to enter into a commercial agreement.…

    • 1191 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Apparat V Dali

    • 969 Words
    • 4 Pages

    The issue is whether Apparat Pty Ltd can take legal action against Dali. In this case, Apparat as a retailer who sells expensive imported sports car has engaged Dali an advertisement agency to advertise his product on a TV station. The agreement agreed to be last for two years. It is said that Apparat wants to cancelled that week’s advertisement slots after knowing that the TV station was planning to run a movie based around the search for the wealthy driver who carelessly knocks down children, killed them and callously drives off which is scheduled to be run on Sunday night. However, Dali neglects to do so. In the agreement, it is stated that Apparat would have the right at any time up to 4 days prior to the broadcasting date to cancel any particular booking. Hence, Apparat should phoned Dali to cancel that week’s slot before Tuesday since the movie was planned to run on Sunday night. The word used in the case given as ‘planning to run a movie’ shows that the TV station have not yet to confirmed whether to broadcast the movie on Sunday night or not. Hence, as long as Apparat follows the rules of the agreement which is to cancelled any booking prior up to 4 days before the advertisement will be broadcast, here therefore the booking can be cancelled. However, since Dali neglects to called off the advertisement on that week, Apparat has experienced losses with the declining sales plus with his reputation as a retailer has been damaged. Thus, Dali is said to breach the contract by neglecting Apparat’s request.…

    • 969 Words
    • 4 Pages
    Good Essays

Related Topics