LAWS105 Study Guide - Final Guide: Freedom Of Contract, General Idea, All England Law Reports
Document Summary
Valid contract properly formed with the required elements and is recognised and enforceable in the court of law. The contract is legally binding, but could become void. Moral: the deft who wrongs claimant must repair (court awards damages for loss suffered during due to deft"s breach of contract. Statute law: this can limit contractual freedom for example for the protection of consumers from unfair terms of misleading conduct. For example, trade practices act 1974 and the insurance contracts act 1984. Self imposed: in most cases parties are free to decide whether or not to enter into a contract and if so, what obligations they will undertake towards each other. Both parties are free to determine what the consequences of the breach of their obligations are to be. (freedom of contract) Sanctity of contract is a general idea that once parties duly enter into a contract, they must honour their obligations under the contract.
