Jasmine Cumberbatch

U63

1. Define the term 'contract'

A contract may be defined as a legally binding agreement between two or more persons
(parties). Alternatively, it could also be defined as a promise or set of promises which
the law will enforce. Contracts are agreements and can be classified a either bilateral or
unilateral.

2. Make the distinction between a contract and an invitation to treat, giving 2 examples
of each.
An invitation to treat is simply an expression of willingness to enter into a negotiations
which may lead to the conclusion of a contract. An invitation to treat is an indication that
the invitor is willing to enter into negotiations but is not prepared to be bound
immediately. Therefore, it is not enforceable.
Two examples of this are goods on displayed for sale in shop window, as seen in the
case of Fisher v Bell, and goods displayed in a supermarket or self-service store as
seen in the case of Pharmaceutical Society of Great Britain v Boots.
Whereas, a contract is an enforceable agreement between two parties, a contract is
enforceable by the courts.(Review statement) Two examples of this are in cases of
Williams v Carwardine and Shadwell v Shadwell. Example not clear.

3. Define each of the tenants of a contract and state at what stage in negotiations they
are introduced. (An invitation to treat is not needed to form a contract.)
Invitation to treat, this is an indication that the invitor is willing to enter into negotiations
but is not prepared to be bound immediately.
1. Offer, this is an expression of willingness to contract made with the intention that
it shall become binding on the offeror as soon as the offeree accepts.
2. Acceptance, this is a final and unqualified assent to all the terms of the offer
3. Consideration, it is a benefit to one party or a detriment to the other
4. Capacity, the ability to actually enter into a legally binding contract
5. Intention to create legal relations, this is an an important aspect of enforceability
by the courts.
6. Certainty,the legal requirement that the terms of the agreement must be certain
and complete in order for there to be a binding contract.
7. Form, this is to highlight the fact that depending on the type of contract, some
must be made by deed, written or evidenced in writing.

4. Pat is fired from her job, this is in breach of her 12 month contract. Outline what
damages Pat can recover and why.

Pat can recover for compensatory damages, which represent the wages she would
have earned if she had completed her contract. This can be further explained in the
case of Hadley v Baxendale [1854], in this case it was held that the damages of breach
include : those which may fairly and reasonably be considered arising naturally from the
breach of contract. In the scenario above, the claimant "Pat" losing out on the months
pay before her contract had ended can be reasonably considered because of the
breach of her contract. This is ok but you should be more specific with the time period
she should be paid for

5. Jan is a law student who has ensured that he earns extra cash, by selling some of his
belongings, he sells his skis to Dorothy who agrees to buy them for $200 dollars. She
never comes up with the money. What is the effect of Dorothy's failure ?

Dorothy has committed a breach of contract and would be liable to pay Jan
compensatory damages to place him in the position he would have been, if Dorothy had
paid the money. The case of Hadley v Baxendale [1854] may be used to reflect that
likewise in the situation above, that damages available for breach of contract include:
Those which may fairly and reasonably be considered arising naturally from the breach
of contract. It can be argued that him losing out on the money she would have paid to
him is considered to be naturally arising from breach.
This case isn’t directly related to this issue. In some instances an example is better than
a wrongly used case.