Contract Law Report: Principles, Outcomes and Alternative Approaches

This report provides a comprehensive analysis of a contract law case study, focusing on the key principles and rules governing contract formation, contents, and termination. It examines the scenario where a regular customer of HFFS experiences damages while using their ferry service, and analyzes the legal implications considering the absence of a signed contract. The report delves into the concepts of offer, acceptance, consideration, and contractual intentions, along with the importance of express and implied terms. It assesses the potential outcomes of the case, considering the liability of HFFS for the damages, and explores alternative approaches and outcomes, including the relevance of previous contracts and consumer rights. The report concludes with a discussion of doctrinal and conceptual difficulties and identifies various areas of uncertainty in the case.

CONTRACT LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1) Key principles and rules of contract law.................................................................................4
2) Producing a reasonable judgement of possible outcomes.......................................................5
3) Alternative approaches and outcomes.....................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The report of contract law will comprehensively analyse the case study given and
establish the key findings to offer suggestion to the HFSS under the contract law. Key principles
and rules of the contract law will be elaborated along with the key cases and statutes. Further a
reasonable judgement of possible outcome will be mentioned. At last conceptual difficulties will
be identified and alternative approaches will be recognized.
MAIN BODY
1) Key principles and rules of contract law
According to the English contact law there are three important parts of the contract law
such as the formation of contract, contents of contract and the end of a contract. Formation of
contact undertakes various important aspects such as offer, acceptance, consideration,
contractual intentions and form. Offer states that it id an expression of the willingness on certain
specified terms to contract. Under which it is made with the intentions that are binding once it is
accepted by the person to whom it is address. Such offer can made or addressed to a single
person or a group of person or parties Carlill v Carbolic Smoke Ball Company [1893]. Those
who enter into a contract known as the parties to the contract 1.
Acceptance to such offer is very important in the contract, as per the English law if an
offer is not accepted by the parties who are being addressed it cannot bind anyone. Such
acceptance of the contract must be willingly done there must not be any external forces which
puts pressure on a person to enter into a contract. Acceptance is a form of consent which is given
by the parties attached with the contract. An acceptance is of no use if the parties to the contract
are not aware about the same as it can create hardship for the people. Acceptance to offer and
counter offer both are important. An offer may be revoked at anytime before its acceptance.
Consideration is also a vital aspect of the contract. In common law, promise itself is not
binding as a contract until it is backed by any form of consideration. Consideration is anything
which has value which is offered as a promise and is mandatory in order to make the promise
enforceable as contract. Court does not ask for an adequate consideration but sufficient one
which makes contract binding 2. Further, Contractual intention is prerequisite for a contact under
English contract law. Intentions which are attached to the contract must be in good faith and
1 Matulionyte, Rita 2019
2 Mousavi, Seyyed Ahmad 2019

legal, such contract must be agreed by parties for legal binding. A contract which is not backed
by the legal intentions is considered a invalid. Balfour v Balfour [1919] 2 KB 571, states that the
contract without legal intentions and considerations are not binding in nature.
Contents of contract includes express terms and implied terms. Express terms are those
which are set by the parties in the contract. Parties to the contract mutually agrees upon the terms
and conditions which are mentioned in the contract and parties to the contract must abide by
those expressed terms in the contract. Implied terms are those which are stated in the contract yet
are intended by parties or are operation of law or by custom 3. e.g. entering into a contract of
selling goods, here goods must be legal and fit to be sold in the country in the interest of the
public. Such aspects are implied terms which needs to be followed.
End of contract, there are four ways which can bring a contract to an end. Expiration,
termination, vitiation and frustration. Expiration is where a contract comes to an end according to
the conditions mentioned in the contract. Termination of the contract is where contract is
beached by the parties. Vitiation is when the basis of contract is no longer in existence or
relevant or is changed which makes a contract come to end. Frustration is when unforeseen
events makes the performance of the contract impossible.
2) Producing a reasonable judgement of possible outcomes
In the given case where sukie is planning her regular visit, as she is a regular customer of
HFFS she was not made to sign the contract which states the HFFS is not liable for any loss or
damage to the property and passenger on their property while on their ferry. Yet she has signed
the contract for her previous ferry rides for the same route. According to the English contract law
no terms and conditions can be binding to the parties who have not accepted the contract.
As sukie had not entered any contract which takes the liability of any loss or damage
caused while being on ferry 4. There may not be expressed terms which stated the contract yet
there is clear implied terms which makes HFFS liable for the damages caused to sukie. As per
the law exclusion or limitation clause has applicability or is enforcible only if it has been
incorporated into the contract. HFFS'S standard terms are incorporated if the same have been
fairly communicated to sukie.
3 Eller, Klaas Hendrik 2020
4 Kumar, Manasi, and Maren Heidemann 2022

HFFS is legally responsible for the damages and losses caused to the sukie as it comes
under the implied terms. As here contract may not have been entered but the prerequisite of the
contracts were clear which are intention, consideration paid by sukie, legality, implied terms etc.
Yet the best option for HFFS is to make a settlement with sukie to reasonably pay for the
damages and losses 5.
3) Alternative approaches and outcomes
According to the case given there may have been a different scenario if HFFS has made
sukie sign the contract, in the case it was free from its liability to pay for the damages and losses.
But as sukie was not made to sign the contract and incident has taken place where she has faced
the damages to the property and self, it makes HFFS liable for the same. Yet the doctrinal and
conceptual difficulty exist as there was no written contract which makes it difficult to figure the
agreement out 6. The good faith of ferry and sukie can not be assured just because of the implied
terms.
The different outcome of the scenario is where Powell v. Lee (1908) case offer and
acceptance, must be communicated to the parties and as sukie has signed the contract in her
previous rides, she was aware of the fact that HFFS takes no responsibility of any losses or
damages to properties and personal while riding on the ferry. This is a strong evidence which can
be used by HFFS in reducing or cancelling the claims made by the sukie. Yet a lack of written
agreement or taken consent can reduce the chance of presenting the same in court of law. Such
implication of the inability to represent the lack of liability due to awareness of the absences of
liability to other party comes under the implied terms 7. Yet sukie being a customer can sue
HFFS under the consumer right act in the consumer court. Which makes implied terms not so
prominent as there was absence of expressed terms which stated the liability will not be bear by
the owner of the ferry for the damages of the car and self harm.
CONCLUSION
The above report has identifies the case study and analysed the possible suggestion of the
judgement. Also, various key rule and principles of the contract law has been identified. A
5 Barnett, Katy 2021
6 MacFarlane, Lorna 2021
7 McCamus, John D 2021

comprehensive judgement has been mentioned sourcing the factual situation. At last various
areas and outcomes of uncertainty will be illustrated.

REFERENCES
Barnett, Katy. "Rethinking the Law of Contract Damages. By Victor P. Goldberg.[Cheltenham,
UK: Edward Elgar Publishing, 2019. xvi+ 262 pp. Hardback£ 90.00. ISBN 978-1-
78990-250-1.]." The Cambridge Law Journal 80, no. 2 (2021): 411-413.
Eller, Klaas Hendrik. "Comparative genealogies of “contract and society”." German Law
Journal 21, no. 7 (2020): 1393-1410.
Kumar, Manasi, and Maren Heidemann. "Contract law in common law countries: A study in
divergence." Liverpool Law Review (2022): 1-15.
MacFarlane, Lorna. "Contract Law and the Legislature: Autonomy, Expectations, and the
Making of Legal Doctrine." Edinburgh L. Rev. 25 (2021): 264.
Matulionyte, Rita. "Empowering authors via fairer copyright contract law." University of New
South Wales Law Journal, The 42, no. 2 (2019): 681-718.
McCamus, John D. "The question of fairness in contract law." (2021): 285-300.
Mousavi, Seyyed Ahmad. "A Comparative Study of the Legal Status of Minor Contracts and the
Basis of their Validity in Iranian and UK Laws." Journal of Comparative Law 5, no. 2
(2019): 143-162.