Class 2 Contract Law
What is an obligation? That you are binded and have duty in doing something. You are obligated to
do it. You have the right for someone to fulfil their obligations to you.
Burke: an obligation is a rope around my neck. I am under an obligation to you… you are in control.
The state enforces these obligations in criminal law. In private law however, it is between the two
parties involved. You have a CHOICE to pursue in private law.
Private law is different from criminal law in terms of what happens after the case. Criminal
law includes sanctions, deterrence and civil service. Private law damages are not to punish,
they are to resolve the issue and compensate the party who was damaged by the broken
contract.
Contract law is to do with using your will to come to an agreement via a written agreement
with another party. Tort has further consequences and has no contractual agreement involved.
Tort obligations are codified whereas contract obligations only bind you when you enter a
contract, written or oral.
Contract law and tort law come under the umbrella term of the Law of Obligations. You are
obligated to not damage someone for example even though the contract didn’t explicitly state
‘don’t damage’ (insert example).
PRIVITY OF CONTRACT: If you go into a contract with someone, you only enter the
contract with them. Be careful though; if you buy a sweet from a shopkeeper, you enter into a
contract with the company because the shopkeeper is merely an agent.
DONOGHUE V STEVENSON: Tort case. She didn’t have a contract with the company
because her friend entered the contract after buying the ginger beer. FLOODGATES
ARGUMENT: there is a danger, and essentially fear, of liability against everyone.
NEIGHBOUR PRINCIPLE: proximity and foreseeability of harm. The manufacturer
essentially knew that the bottle not being seethrough is a tactic to avoid being sued for
damages.
WINTERBOTTOM V WRIGHT: No privity of contract: cannot sue.
CARLILL CARBOLIC SMOKE BALL CO:
- defendant: too vague to be an offer.
- no intention to pay £100 to people who contracted flu.
- Notification of acceptance: the individual should have notified the company of acceptance
before wanting to claim the money.
- no consideration.
- time limit? Indeterminate liability.
- insensible and extravagant.
APPEAL DISMISSED:
- the 1000 pounds deposited in a bank shows that the company had intention to pay £100.
- Carlill bought the smoke ball and this is basically notification of acceptance; they saw the ad
and presumed the company would reimburse her if she caught flu.
- objective manifestations of intention are needed. Interpreting terms objectively. The other
party needs to check and assess and the court needs to be able to say, ‘objectively speaking’.
- benefit to the company (consideration).
- freedom of contract: the court has nothing to do with the contract between the two parties
involved (besides determining the case if there has been a breach).
What is an obligation? That you are binded and have duty in doing something. You are obligated to
do it. You have the right for someone to fulfil their obligations to you.
Burke: an obligation is a rope around my neck. I am under an obligation to you… you are in control.
The state enforces these obligations in criminal law. In private law however, it is between the two
parties involved. You have a CHOICE to pursue in private law.
Private law is different from criminal law in terms of what happens after the case. Criminal
law includes sanctions, deterrence and civil service. Private law damages are not to punish,
they are to resolve the issue and compensate the party who was damaged by the broken
contract.
Contract law is to do with using your will to come to an agreement via a written agreement
with another party. Tort has further consequences and has no contractual agreement involved.
Tort obligations are codified whereas contract obligations only bind you when you enter a
contract, written or oral.
Contract law and tort law come under the umbrella term of the Law of Obligations. You are
obligated to not damage someone for example even though the contract didn’t explicitly state
‘don’t damage’ (insert example).
PRIVITY OF CONTRACT: If you go into a contract with someone, you only enter the
contract with them. Be careful though; if you buy a sweet from a shopkeeper, you enter into a
contract with the company because the shopkeeper is merely an agent.
DONOGHUE V STEVENSON: Tort case. She didn’t have a contract with the company
because her friend entered the contract after buying the ginger beer. FLOODGATES
ARGUMENT: there is a danger, and essentially fear, of liability against everyone.
NEIGHBOUR PRINCIPLE: proximity and foreseeability of harm. The manufacturer
essentially knew that the bottle not being seethrough is a tactic to avoid being sued for
damages.
WINTERBOTTOM V WRIGHT: No privity of contract: cannot sue.
CARLILL CARBOLIC SMOKE BALL CO:
- defendant: too vague to be an offer.
- no intention to pay £100 to people who contracted flu.
- Notification of acceptance: the individual should have notified the company of acceptance
before wanting to claim the money.
- no consideration.
- time limit? Indeterminate liability.
- insensible and extravagant.
APPEAL DISMISSED:
- the 1000 pounds deposited in a bank shows that the company had intention to pay £100.
- Carlill bought the smoke ball and this is basically notification of acceptance; they saw the ad
and presumed the company would reimburse her if she caught flu.
- objective manifestations of intention are needed. Interpreting terms objectively. The other
party needs to check and assess and the court needs to be able to say, ‘objectively speaking’.
- benefit to the company (consideration).
- freedom of contract: the court has nothing to do with the contract between the two parties
involved (besides determining the case if there has been a breach).
