LAWS104 Chapter Notes - Chapter 1: Healthscope, Market Power, Supreme Court Of Judicature Act 1873
11 May 2018
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Chapter 1 [Introduction]
The definition of contract
- It is the essee of otat, egaded as a lass of oligatios, that thee is a
olutay assuptio of a legally efoeale duty (Australian Woollen Mills Pty Ltd
v The Commonwealth)
- Pollok: A otat is a poise o set of poises hih the la ill efoe
- Polloks defiitio is ehoed y Wilso J, [a] otat is a poise o set of
promises, the performance of which the law recognises as an obligation, and the
eah of hih gies ise to a eedy (Page v Healthscope Operations Pty Ltd)
- Issues ith Polloks defiitio
o 1: its implication that the only promises that can be enforced are those
contained in a contract
o 2: an oral promise made in the context of a sale of land can give rise to a valid
contract, but the promise will be unenforceable due to the lack of writing
evidencing the promise
- Teitel: A otat is a ageeet giig ise to oligatios hih ae efoed o
recognised by law. The factor that distinguishes contractual form other legal
oligatios is that they ae ased o the ageeet of the otatig paties
- Issues ith Teitels defiitio
o 1: a contract can exist in the absence of actual agreement between the
parties
o 2: not all agreements giving rights to obligations are contracts. Unless the
agreement is intended by the parties to be legally binding, a contract does
not exist
- Key elements of the existence of a contract relate to the fact of agreement and the
requirement of consideration
The significance of contract law
- ‘eih: [i]f popety ad aket poe lie at the heat of apitalis, otats ae its
lifeblood - the eas y hih tades ae ade ad efoed
- Contracts are used in
o Sale of goods and services
o Performance of work
o Deposit with, or borrowing from, banks and other financial institutions
o Purchase or leasing of land
o Insurance
A law of contract or the law of contracts?
- ‘oskill LJ: It is desiale that the sae legal piiples should apply to the la of
contract as whole and that different legal principles should not apply to different
ahes of that la (Cehave NV v Bremer Handelsgesellschaft mbH (The Hansa
Nord))
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Document Summary
The definition of (cid:858)contract(cid:859) (cid:862)it is the esse(cid:374)(cid:272)e of (cid:272)o(cid:374)t(cid:396)a(cid:272)t, (cid:396)ega(cid:396)ded as a (cid:272)lass of o(cid:271)ligatio(cid:374)s, that the(cid:396)e is a (cid:448)olu(cid:374)ta(cid:396)y assu(cid:373)ptio(cid:374) of a legally e(cid:374)fo(cid:396)(cid:272)ea(cid:271)le duty(cid:863) (australian woollen mills pty ltd v the commonwealth) Pollo(cid:272)k: a (cid:272)o(cid:374)t(cid:396)a(cid:272)t is (cid:862)a p(cid:396)o(cid:373)ise o(cid:396) set of p(cid:396)o(cid:373)ises (cid:449)hi(cid:272)h the la(cid:449) (cid:449)ill e(cid:374)fo(cid:396)(cid:272)e(cid:863) T(cid:396)eitel: (cid:862)a (cid:272)o(cid:374)t(cid:396)a(cid:272)t is a(cid:374) ag(cid:396)ee(cid:373)e(cid:374)t gi(cid:448)i(cid:374)g (cid:396)ise to o(cid:271)ligatio(cid:374)s (cid:449)hi(cid:272)h a(cid:396)e e(cid:374)fo(cid:396)(cid:272)ed o(cid:396) recognised by law. The factor that distinguishes contractual form other legal o(cid:271)ligatio(cid:374)s is that they a(cid:396)e (cid:271)ased o(cid:374) the ag(cid:396)ee(cid:373)e(cid:374)t of the (cid:272)o(cid:374)t(cid:396)a(cid:272)ti(cid:374)g pa(cid:396)ties(cid:863) Issues (cid:449)ith t(cid:396)eitel(cid:859)s defi(cid:374)itio(cid:374: 1: a contract can exist in the absence of actual agreement between the parties, 2: not all agreements giving rights to obligations are contracts. Unless the agreement is intended by the parties to be legally binding, a contract does not exist. Key elements of the existence of a contract relate to the fact of agreement and the requirement of consideration.
