Contract Law: Principles, Formation, Obligations, and Breaches

This document provides an overview of contract law, including the doctrines and rules governing it. It explains the formation of contracts, the obligations of parties, and the legal consequences of breaches. It also offers advice on developing legal arguments and resolving disputes. The subject is Contract Law, and the document type is a study material.

Contract Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Understand the doctrines and rules governing contract law........................................................3
Demonstrate knowledge and understanding of the principles of contract law and their
relevance to given facts...............................................................................................................3
Explain how a contract is formed and the implications of its contents to different parties.........4
Identify and evaluate obligations of parties to contracts and the legal consequences of any
breaches.......................................................................................................................................4
Develop and structure legal arguments........................................................................................5
Identify and apply rules and principles to given problems and present logical advice...............5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Contract law can be explained as the law which deals with the legal relationship between or
more than two people or organisation. It is necessary to enter into a legal contract before making
any of the deal because all of the legal terms are explained in detail. In context of the file,
different topics will be explained related to doctrine and rules governing contract law. There will
be explanation about how legal contracts are formed. Also, one of the legal arguments will be
formed and by the help of legal rules and principles problem will be solved.
MAIN BODY
Understand the doctrines and rules governing contract law.
In simple words, doctrine means legal principles which tells that how any of the law is
required to be formed who are the person who can involve within the contract. The doctrine of
contract law says that contract should be legal and if in any of the situation it is not legal from
the starting then it will be said void ab initio1. It is helpful for everyone because it guides to take
best possible decision whenever there is the requirement for the company. Also, it gives the
opportunity to complete any of the project within the given specific time period.
Demonstrate knowledge and understanding of the principles of contract law and their relevance
to given facts
There are six different principle of contract of law which has been discussed below:
 Agreement: It is necessary for the involved party that there must be offer and acceptance
to form the agreement. Here, one has to make offer and another one have to accept it.
 Considerations: When signing the contract, it is important that consideration should be
there in which one party have to complete the terms and condition and another one have
to pay something in return.
 Intention: It is said that, there should be intention of party to enter into the contract. It is
necessary that both must be clear that for what reason they are going to enter into the
contract2.
 Capacity: The most important thing which is needed to be focus is that the person who is
going to enter into the contract must not be minor. Secondly, person should be mentality
1 Ewan McKendrick, Contract Law.
2 (Turner, 2014)

fit and fine and if they are not fit and fine then contract will not be valid in any of
circumstances.
 Genuine Consent: The most crucial part of the contract is that genuine contract should be
there which means that any of the person should not be forced to enter into the contract.
Also, misrepresentation should not be done.
 Legality: As per the situation of law, it is necessary that as per the requirement of
agreement relevant laws should be followed which helps to confirm contract can be
easily completed within the specific time period3.
This are some of the principles of contract law which is needed to be considered while
entering into the contract. If any of the condition are not fulfilled, then that sort of contract will
not be counted as valid contract.
Explain how a contract is formed and the implications of its contents to different parties
Whenever any of the contract is required to be formed different terms and condition is
needed to be considered in which it is necessary to find that contract is legal and terms and
condition are valid. It is important to understand that voidable contract is not entertained and it is
not legally formed. It contents to different parties says that how they are needed to perform their
part of work. It is compulsory that involved party should not breach the terms and condition in
any of the situation. In addition, if terms and condition are being changed in any of the situation
then it is said that it is not compulsory to fulfil the terms and condition of the contract.
Identify and evaluate obligations of parties to contracts and the legal consequences of any
breaches
Firstly, it is necessary that person should not breach the terms and condition of the
contract and if in any of the situation it takes place the legal action can be taken on the one who
breaches it. Breach of contract can be explained as the condition where one of the party fails to
perform their part of work. In this situation, innocent party tries to prove that what are
consequences which one of the suffer just because of the breach of contract. If any of the party
fails to perform the obligation of contract, then that party is deemed to fulfil the requirement of
agreement. Also, in some of the situation other additional expenses are also needed to paid off as
per the orders given by the court.
3 Hugh Collins, 'European Social Policy And Contract Law' (2014) 3 European Review of Contract Law.

Develop and structure legal arguments
There is the contract between Anderson and HOP Ltd (House of People) that if in any of
the situation any of the party wants to exit from the contract then prior notice must be given
which should not be less than three months. Anderson works as Manager of the company who
knows almost each and every information related to company due to which if Anderson leaves
the firm than internal information might be leaked to outsiders4. Now, Anderson had the
discussion with the rivalry firm of HOP Ltd that if he joins the company his salary will be
increased by 30% and other benefits will be provided to him. By looking at this terms and
condition Anderson gives his resignation to HOP without serving any of the notice period. Now,
CEO of HOP is not willing to listen any of the things and wants to file the case against Anderson
for the breach of contract.
Identify and apply rules and principles to given problems and present logical advice
CONTRACT:
It’s the agreement between two people and commencing relationship of business between
them, this will declare to have a certain outcome and define the terms and conditions. This term
defines several situations where people do provide their side of negotiations and interest to be
gained in the business5. Certainly these people do according to policies mentioned in contract if
not they can be sued and filled law suit against them.
BREACH OF CONTRACT:
This term defines the situation where parties who do not follow the policies mentioned in
the contract. This causes monetary loss to the innocent party and they launch a complaint against
the accused party. Here, circumstances can be very difficult to maintain and give much issues in
between parties and generate disputes in court proceedings.
THE CODE OF ETHICS:
These are some rules of being a professional in work and putting hundred percent effort
in workings for betterment of company and give circumstantial conditions where one can either
choose loyalty towards organisation or the other way. Here, these are not mandatory in nature to
4 Stefan Grundmann, 'The Future Of Contract Law' (2011) 7 European Review of Contract Law.
5 Richard A. Epstein, 'Intellectual Property And The Law Of Contract: The Case Against ‘Efficient Breach’'
(2013) 9 European Review of Contract Law.

follow but these shall be followed to avoid troubles and provide a neat and clean environmental
working place.
INJUNCTION
Injunction as mentioned interim Injunctions, under section 25 of Civil Jurisdiction and
Judgements Act 1982 and American Cyanamid principles. It meant to stop people from doing a
certain thing or taking a certain decision which will affect the organisation reputation or cause
them monetary loss.
The dispute between both these clients is getting very huge and neither of the party wants
to take the issue to court and make it a very big issue. This dispute can be solved through the
process of Arbitration process6. It is one of the process where disputes will be solved by
involving the third party. The panel will try to find the main issues that why disputes has raised
and according to that decisions are made. Disputes of breach of contract between Anderson and
HOP ltd can be easily solved with this process.
CONCLUSION
From the above file, it can be concluded that contract law is one of the most important law
or principle which decides that how any of the work should be done. To form any of the legal
contract, it is necessary that principles of contract law must be followed. The doctrine and
principle of contract law says that person should not back step once they enter into the contract
else legal actions can be easily taken. Whenever in some of the situation cases related to breach
of contract arises then it can be easily solved by taking the help of legal advices such as from
arbitration method, conciliation process and many more.
6 Marina Hamilton, Contract Law (2015).

REFERENCES
Books & Journals
McKendrick E, Contract Law
Turner, C. (2014). Contract law. Abingdon, Oxon: Routledge.
Collins H, 'European Social Policy And Contract Law' (2014) 3 European Review of Contract Law
Grundmann S, 'The Future Of Contract Law' (2011) 7 European Review of Contract Law
Epstein R, 'Intellectual Property And The Law Of Contract: The Case Against ‘Efficient Breach’' (2013) 9
European Review of Contract Law
Hamilton M, Contract Law (2015)