AQA A-Level Law 3.4 The nature of law and human rights, or contract: a complete overview of the contract option

What this module actually demands

The contract option is the optional substantive law module of AQA A-Level Law (the alternative is human rights). Module 3.4 runs from the underlying theory, through the formation and content of a contract, to its discharge and the remedies for breach. The examiners test two linked skills: precise knowledge of the rules and authorities, and the structured application of those rules to commercial and personal scenarios.

This guide walks through all six topics of the contract option in specification order, then sets out the exam patterns AQA repeats. Each topic has a matching dot-point page with practice questions; this overview ties them together.

Theory and formation

The option opens with the rules and theory of contract: the nature and purpose of contract law, the principle of freedom of contract, the tension between freedom and fairness, and the growth of consumer protection that qualifies freedom of contract.

Formation of contract sets out the four requirements for a valid contract: a clear offer (distinguished from an invitation to treat, Carlill v Carbolic Smoke Ball Co, Fisher v Bell), an unqualified acceptance (including the postal rule, Adams v Lindsell), consideration (the price of the promise, sufficient but not necessarily adequate, Chappell v Nestle), and an intention to create legal relations (Balfour v Balfour, Merritt v Merritt).

Terms and vitiating factors

Terms of a contract covers express and implied terms (The Moorcock), the classification of terms as conditions, warranties and innominate terms with the effect of each breach, the control of exclusion clauses, and the implied terms in the Consumer Rights Act 2015.

Vitiating factors covers misrepresentation (innocent, negligent and fraudulent, Derry v Peek) and economic duress (Atlas Express v Kafco), and their effect of making a contract voidable, with the remedy of rescission and its bars.

Discharge and remedies

Discharge of contract explains the four ways a contract ends: performance (the complete-performance rule and its exceptions, Cutter v Powell, Hoenig v Isaacs), agreement, breach (actual and anticipatory, Hochster v De La Tour), and frustration (Taylor v Caldwell, Krell v Henry, with the Law Reform (Frustrated Contracts) Act 1943).

Remedies in contract closes the option with damages (the expectation measure from Robinson v Harman), the rules on remoteness (Hadley v Baxendale) and the duty to mitigate, and the equitable remedies of specific performance and injunction.

How this module is examined

A typical AQA profile for the contract option:

• Problem questions. A scenario asking you to advise the parties, worked through formation, terms, vitiating factors, discharge and remedies.
• Short-answer questions. Stating the requirements of formation, the classification of terms, or the rule in Hadley v Baxendale.
• Evaluation and extended answers. Assessing freedom of contract against consumer protection, the law on misrepresentation, or the doctrine of frustration.

Check your knowledge

A mix of recall and application questions covering module 3.4. Attempt them under timed conditions, then check against the solutions.

1. Name the four requirements for a valid contract. (2 marks)
2. Explain the postal rule and one limitation on it. (4 marks)
3. State the remedy for breach of a condition and the remedy for breach of a warranty. (2 marks)
4. Explain two terms the Consumer Rights Act 2015 implies into a contract for the sale of goods. (4 marks)
5. Explain the difference between fraudulent and negligent misrepresentation. (4 marks)
6. Name the four ways a contract can be discharged. (2 marks)
7. Explain when a contract will be frustrated, with an example. (4 marks)
8. State the aim of an award of damages for breach of contract. (2 marks)