The sources of law in a common law system

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UNIVERSITY OF PARIS PRESENTATION 12 MARCH
2004 OUTLINE

• Introduction
• The sources of law in a common law system
• Ideologies of contract The role of the market
• Offer and Acceptance
• Consideration
• Frustration
• Misrepresentation
• Conclusion

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UNIVERSITY OF PARIS PRESENTATION 12 MARCH
2004 Classical Model of Contract
Basic Concepts Maximum freedom of
contract Individual will Objective determination
of the will of the parties Basic
Assumptions Parties are dealing at arm's
length Parties are of equal bargaining
power Parties negotiate each term of the
contract Contract terms provide clearly for all
eventualities There is no continuing relationship
between the parties
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UNIVERSITY OF PARIS PRESENTATION 12 MARCH
2004 CONSIDERATION
Consideration is something of value given in
return for the promise It can either be a
benefit to the other party or a detriment to the
person making the promise The purpose of
consideration is to ensure that enforceable
agreements have an element of market
exchange Past consideration is not good
consideration Performance of a public duty
cannot be good consideration Consideration must
be sufficient but need not be adequate. 1 pound
for a car will be enough. The person making the
promise should be the one providing
consideration Consideration has evolved to keep
in touch with recognised commercial practice,
see Williams v Roffey Bros. and Nicholls
(Contractors) Ltd 1991 1 QB 1
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UNIVERSITY OF PARIS PRESENTATION 12 MARCH
2004 FRUSTRATION
A contract will be frustrated if Performance
is factually impossible Performance becomes
illegal Performance is impractical Performance
becomes pointless
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UNIVERSITY OF PARIS PRESENTATION 12 MARCH
2004 MISREPRESENTATION
Requirements for actionable misrepresentation Th
ere is a representation of present fact It
induces the person to which it is addressed to
enter into a contract with the maker of the
representation This inducement is
reasonable Failure to disclose material facts is
not misrepresentation