ESSENTIAL CONTRACT LAW

The law of contract is of crucial importance in the legal management of transactions and obligations in our economic system. Essentially, a contract is an agreement between two or more parties that the law will enforce. Generally speaking, damages (that is, compensation) are payable for loss suffered by one party due to the non-performance (or poor performance) by the other party to the contract. Moreover, a party may (in appropriate circumstances) request a civil court to order performance by the other party in default. At common law (that is, judge made law), the same legal principles generally apply to all types of contracts. Over time, the strict application of the common law has become somewhat subdued by the principles of equity, designed by the courts to restrain unconscionable contractual outcomes and promote justice. More recently, statute (that is, Parliament made law) has altered or replaced the common law in relation to various aspects of contract law, in particular contracts for consumer goods and services.

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