The law of contract is a vital aspect of business law. It is vital for businesses to understand the language of contracts and their contents to avoid breaches and legal suits. Here, we take a look at ten case studies on the law of contracts.

1. Carlill v Carbolic Smoke Ball Company Ltd (1893)

This case involved the Carbolic Smoke Ball Company’s advertisement of a product that could protect people against the flu. The company claimed to provide a reward to anyone who contracted the flu after using the product. Mrs. Carlill contracted the flu but did not receive the reward, leading to a breach of contract. The case established that a promise of reward can be a binding contract.

2. Williams v Roffey Bros (1990)

This case involved an agreement between a building contractor (Roffey Bros) and a carpenter (Williams). Williams promised to complete a carpentry job, but he was unable to fulfill the agreement. Roffey Bros agreed to pay Williams more money to ensure timely completion. The court held that the additional payment constituted a binding contract.

3. Hadley v Baxendale (1854)

This case established the principle of foreseeability in contract law. It involved a contract to transport a broken mill shaft and return it after repair. The delay in returning the shaft led to significant losses for the mill owner. The court held that damages for breach of contract should be foreseeable at the time of the agreement.

4. Scott v Avery (1856)

This contract law case established the principle of the right to expect performance. Scott contracted Avery as a solicitor in a case, but Avery failed to perform the duty adequately. The court established that the right to expect performance applied to important duties such as legal representation.

5. Partridge v Crittenden (1968)

This case established the principle of invitation to treat. Partridge advertised birds for sale, and Crittenden sued for a breach of contract. The court held that the advertisement was an invitation to treat, not an offer.

6. Routledge v Grant (1828)

This case established the principle of good faith in negotiation. Routledge offered to purchase a property from Grant but failed to provide payment. The court held that negotiations should be in good faith and that Routledge had acted in bad faith.

7. Felthouse v Bindley (1862)

This case established the principle of acceptance in contract law. Felthouse offered to purchase a horse from Bindley, but Bindley refused. Felthouse argued that Bindley’s lack of rejection constituted acceptance. The court held that silence does not constitute acceptance.

8. Fisher v Bell (1961)

This case established the principle of invitation to treat in commercial contracts. Fisher displayed a flick knife in his shop window, and the police arrested him for breaching laws on offensive weapons. The court held that the display was an invitation to treat, not an offer to sell.

9. Thomas v Thomas (1842)

This case established the principle of consideration in contract law. Thomas offered his wife that she could continue living in their marital home after his death. After his death, his wife sued for possession of the property. The court held that the promise was valid as Thomas had received consideration in the form of his wife’s presence.

10. Balfour v Balfour (1919)

This case established the principle of the intention to create legal relations. Mrs. Balfour sued her husband for maintenance payments after he had stopped sending payments. The court held that the agreement was a domestic arrangement and not intended to create legal relations.

In conclusion, these ten cases provide a wealth of information on contract law principles. Businesses must understand these principles to prevent legal breaches and to function in good faith with others.