Eduqas A-Level Law: the law of contract (Components 2 and 3) complete overview

The law of contract is one of the four substantive areas of Eduqas A-Level Law (a private law option), examined as one section of Component 2 (scenario) and Component 3 (evaluation). A contract is a legally binding agreement. This overview ties the topics together; each has a matching dot-point page.

Formation

A valid contract needs four things: an agreement (a clear offer matched by an acceptance), consideration (each side gives something of value), an intention to create legal relations, and certainty and capacity.

Terms

The contents of a contract are its terms. They may be express or implied (by statute, custom or the courts), and are classified as conditions (major terms, breach allows termination), warranties (minor terms, breach allows damages only) or innominate terms (effect depends on the seriousness of the breach). Exclusion clauses that try to limit liability must be incorporated, clear and pass the controls in the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015.

Vitiating factors

Some factors undermine a contract. The key one is misrepresentation: a false statement of fact that induces the contract, which may be fraudulent, negligent or innocent, giving rescission and sometimes damages.

Discharge and remedies

A contract is discharged by performance, agreement, breach or frustration. The main remedy for breach is damages (to put the claimant in the position they would have been in had the contract been performed), subject to causation, remoteness (Hadley v Baxendale) and mitigation, supported by the equitable remedies.

How contract is examined

• Component 2 scenario (AO2). Identify the issue, state the law with authority, apply it to the facts, and conclude on liability and remedy.
• Component 3 essay (AO3). Analyse and evaluate an area (for example consideration or frustration), with a reasoned judgement.