Rules and Theory

• Contract law largely comes from common law, over statute.
• But there are important statutes to know like the Sales of Goods Act 1979 and Consumer Rights Act 2015.
• Only a party to a contract can take legal action on it, however there are some exceptions.
• The terms in a contract must be certain.

  Guthing v Lynn said terms were too vague.
• You can only recover reasonable losses if one side doesn't perform their part of the contract.
• Wellesley Partners v Withers: "A contract breaker is liable for damage resulting from his breach, if at the time of making the contract, a reasonable person in his shoes would have had damage of that kind in mind as not unlikely to result from a breach"
• The law is less likely to uphold a contract which is made for an "immoral purpose".

  Pearce v Brooks

  Parkinson v The College of Ambulance