Contract – Alison Smith (1)

Note that, for SQE1, candidates are not usually required to recall specific case names or cite statutory or regulatory authorities. Cases are provided for illustrative purposes only. Learning outcomes By the end of this chapter you will be able to apply relevant core legal principles and rules appropriately and effectively, at the level of a competent newly qualified solicitor in practice, to realistic client-based and ethical problems and situations in the following areas: ¢ advising on the incorporation and construction of exemption clauses; * advising on the statutory controls of exemption clauses; and e advising on the reasonableness test in the Unfair Contract Terms Act 1977.

Contract eee ee y hea introduction Commercial suppliers often include clauses in contracts to limit, or exclude, their liability for loss or damage in the event of failure to perform the contract properly (eg if goods are delivered late, or a service is performed badly). One of the main problems with these clauses is that they are often hidden away in the supplier’s written standard terms, often referred to as the ‘small print’.

Many buyers do not bother to read the small print before entering a contract (eg when you buy items on the internet, do you ever bother to read the seller’s terms and conditions before ‘accepting’ them?). Buyers only tend to turn their attention to the small print if, and when, there is a problem with performance; so it is only then that they discover it contains exclusion clauses or other onerous terms.

Consequently, common law rules and statute have evolved to protect buyers from unfair contract terms, such as exclusion clauses. 7.2 Common law rules The common law has developed two tests relating to exemption clauses, namely incorporation and construction.

© The University of Law 2022 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior written permission of the copyright holder, application for which should be addressed to the publisher. Contains public sector information licensed under the Open Government Licence v3.0 First edition published 2021 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library.

ISBN 978 1915698 02 5 Preface This book is part of a series of Study Manuals that have been specially designed to support the reader to achieve the SQE1 Assessment Specification in relation to Functioning Legal Knowledge. Each Study Manual aims to provide the reader with a solid knowledge and understanding of fundamental legal principles and rules, including how those principles and rules might be applied in practice.

This Study Manual covers the Solicitors Regulation Authority’s syllabus for the SQE1 assessment for Contract in a concise and tightly focused manner. The Manual provides a clear statement of relevant legal rules and a well-defined road map through examinable law and practice. The Manual aims to bring the law and practice to life through the use of example scenarios based on realistic client- based problems and allows the reader to test their knowledge and understanding through single best answer questions that have been modelled on the SRA’s sample assessment questions.

For those readers who are students at the University of Law, the Study Manual is used alongside other learning resources and the University’s assessment bank to best prepare students not only for the SQE1 assessments, but also for a future life in professional legal practice. We hope that you find the Study Manual supportive of your preparation for SQE1 and we wish you every success.

The legal principles and rules contained within this Manual are stated as at 1 June 2022. Author acknowledgments Alison would like to thank Jan McEwan and Russell Binch for reviewing and commenting on the content of chapters and sample questions: their input was invaluable. Digitized by the Internet Archive In 2024 httos://archive.org/details/contractO000alis Contents Preface Vv Table of Cases xiii Table of Statutes XV PART 1 FORMATION 1 Chapter 1 Agreement 3 SQE1 syllabus 5 Learning outcomes 3 1.1 Introduction 4 eZ Offers and invitations to treat 4 1.2.1.

Goods on display S) 1.2.2 Advertisements > 1.2.3 Auctions and tenders 6 i Acceptance 7 ee Definition 7 1.3.2 | Communication of acceptance 7 1.3.3. Acceptance by post 8 1.4 Termination of offers 9 1.4.1 Rejection 10 1.4.2.

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

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