Lecture Notes: Law of Contracts

Introduction

• Purpose: Coaching students on preparing for law exams.
• Focus: Law of contracts, not many topics, less than 10.
• Advice: Make time to list topics, understand principles, and cite relevant authorities (case law, statutes).

Preparation Tips

• List Contract Topics: Without opening a book, list all topics in contracts.
• Principles and Authorities: For each topic, state the principles and cite case laws or statutes.
• Review and Cross-check: Compare your notes with a good contract law book.
• Comprehensive Preparation: Prepare thoroughly rather than predicting questions.

Lesson Overview

• Objective: Continue with lesson 9, focusing on problem-based questions using the IRAC method.
• IRAC Method: Identify area of law, raise issues, state principles, apply to facts.

Problem-Based Question Example

• Scenario: Involves multiple parties with offers and acceptance issues.
• Steps to Tackle:
  • Identify the laws involved (offer and acceptance, communication of acceptance, revocation).
  • Raise specific issues from the scenario.
  • Use IRAC: State the issue, relevant law, application, and conclusion.

Key Points on Contracts

• Elements of Valid Contracts:
  • Agreement (Offer & Acceptance)
  • Intention to create legal relations
  • Consideration
  • Capacity
  • Certainty of terms
  • Genuineness of consent
  • Legality
• Objective Test: Determine agreement through the lens of a reasonable person.
• Issues with Consent: Mistake, misrepresentation, duress, undue influence.

Offer and Acceptance

• Offer vs. Invitation to Treat: Distinguish using case law.
• General Offers: Can lead to unilateral contracts; accepted by performing the required act.
• Termination of Offers:
  • Rejection, counteroffer, lapse of time, revocation.
• Revocation Rules: Must be communicated to be effective; postal rule does not apply to revocation.
• Battle of Forms:
  • Example: Butler Machine Tool Case.

Acceptance

• Final and Unqualified Assent: Must mirror the offer exactly.
• Methods of Acceptance: Can be by words, conduct, or writing.
• Communication of Acceptance:
  • Generally not effective until communicated.
  • Exceptions include postal rule and prescribed modes.
• Silence as Acceptance: Generally not valid unless mutually agreed upon.

Conclusion

• Systematic Approach: Always be systematic with problem-based questions.
• Questions Handling: Apply IRAC method for structured answers.
• Prepare for Exams: Be thorough with all topics to ensure passing grades.