Cecily Zamora
When answering a contract law exam question, it is important to first identify the category of the dispute. All contract disputes can be broadly categorised into two types: disputes about the existence of a contract and disputes about the substantive terms of a contract. From there, students should identify the relevant legal issues and consider the order in which to deal with them, presenting points in a coherent and logical manner. It is crucial to explain the law completely and convincingly, assuming limited legal knowledge on the part of the reader. Avoid making unnecessary statements or assumptions and focus on providing a balanced treatment of the issues. In cases of legal uncertainty, explain the nature of the uncertainty and suggest possible resolutions, including your own view of the likely approach a court would take.
| Characteristics | Values |
|---|---|
| Exam approach | All contract disputes can be categorized into two types: a dispute about the existence of the contract or a dispute about the substantive terms of the contract. |
| Exam question interpretation | Avoid stating the obvious, such as "This is a problem concerning contract law". |
| Fact usage | Only repeat facts to identify the basis for your identification of the legal issue. Do not assume facts that are not given. |
| Legal position | If unclear, explain the nature of the uncertainty and suggest ways to resolve it, including your own view of the court's likely approach. |
| Conclusion | Summarize the outcomes for the parties you were asked to advise, but only if you haven't already done so in the main body of your answer. |
| Legal knowledge | Fully explain the law, assuming the reader has little knowledge of the area. Understand the legal principles so that you can explain them convincingly. |
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What You'll Learn
Dispute about the existence of a contract
A contract is an agreement between two or more parties where each party agrees to do, not do, or pay something according to the terms of the agreement. A contract dispute can be broadly categorised as either a dispute about the existence of a contract or a dispute about the substantive terms of the contract.
Disputes about the existence of a contract can be further divided into two types: disputes over the validity of a written agreement, and disputes over the existence of an oral agreement. In the former case, one party claims that the contract is invalid despite having a written document that is signed by both parties. For example, this could be due to the contract being for an illegal purpose, such as selling illegal drugs, or due to one party lacking the capacity to contract, such as being a minor or not having the mental capacity. In the latter case, one party denies that an oral agreement was ever reached. Oral contracts can be legally binding and enforceable, but certain types of agreements, such as the sale of goods over a certain amount or the sale of real estate, require a written contract.
To prove the existence of a contract in a breach of contract claim, a plaintiff must demonstrate how the defendant failed to meet the requirements of the contract. This can be done through obtaining sufficient evidence, such as proof of receipt of payment. In the case of an oral contract, a plaintiff should understand the elements of contract formation under the governing law and the evidence needed to prove a valid contract, such as mutual assent, sufficient specification of material terms, and an intent to be bound.
An example of a dispute about the existence of a contract is Lucy v. Zehmer, where one party claimed that no contract existed in the first place.
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Dispute about the substantive terms of a contract
A contract dispute arises from a conflict or disagreement between the involved parties. This occurs when there are differing interpretations, performances, or enforcements of the contract. In other words, a dispute about the substantive terms of a contract arises when parties have conflicting views or claims regarding the terms, obligations, or rights outlined in the contract.
A contract is an agreement between two or more parties where each party agrees to do, not do, or pay something according to the terms of the agreement. For a contract to be legally binding and enforceable, there must be a mutual agreement, an offer and acceptance, and consideration. A mutual agreement means that both sides must agree to be bound by their contract and agree on the essential terms. An offer and acceptance refer to one side making a clear or definite offer and agreeing to be bound by the contract, and the other side clearly accepting that offer. Consideration means that each party to a contract must give something of value to the other.
A breach of contract occurs when one party breaks the terms of an agreement between two or more parties. This can include when an obligation stated in the contract is not completed on time, or when it is not fulfilled at all. A breach of contract can be either actual or anticipatory. An actual breach occurs when one party refuses to fully perform the terms of the contract, while an anticipatory breach happens when a party states in advance that they will not be delivering on the terms of the contract.
To resolve a contract dispute, it is important to first thoroughly examine the contract to understand the disputed terms, obligations, and potential remedies available. This involves carefully reviewing the contract terms and identifying any areas of ambiguity or conflicting interpretations. It is also crucial to communicate and negotiate with the other party to clarify misunderstandings, address concerns, and attempt to resolve the dispute amicably. This could involve face-to-face meetings, emails, or formal written communications. If all other methods fail, parties may choose to pursue litigation by filing a lawsuit in a court of law, although this can be a lengthy and costly process.
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Explain uncertainties and suggest solutions
When answering a contract law exam question, it is important to remember that there is often no single correct answer. Examiners frequently test your ability to apply the law to uncertain situations. Therefore, if the legal position is unclear, explain the nature of the uncertainty and suggest ways in which it could be resolved. You should also include your prediction of the approach that a court would be most likely to take. In such cases, arguing by analogy and policy is appropriate. However, you must ensure that your answer does not become "layman's law", which is an answer based purely on policy that ignores the law.
Your answer should be structured in a coherent and logical manner. Begin by identifying the legal issues that the people in the question wish to address. For example, they may want to know if a binding contract exists and what the consequences of this are. Next, consider the order in which you will address these issues. Usually, you would first identify an offer before determining whether a piece of correspondence constitutes an acceptance.
It is unnecessary to state obvious and simple statements such as "This problem involves difficult issues of fact and law". You should also avoid repeating the facts of the problem unless they are being used to expressly identify the basis for your identification of the legal issue. Instead, incorporate them into your discussion of the legal issue and its application.
Remember to fully explain the law in a complete and standalone manner. Write as if your intended audience is a lawyer with limited knowledge of the area of law in question. Make sure to understand the legal principles so that you can explain them convincingly and present your points in a balanced manner.
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Avoid obvious statements
When answering a contract law exam question, it is important to avoid making obvious statements that add nothing to your answer. For instance, introductions such as "This problem involves difficult issues of fact and law" or "This is a problem concerning contract law" are unnecessary and should be avoided. Instead, focus on providing a clear and concise answer that addresses the specific question or issue at hand.
It is crucial to understand the legal principles and be able to explain them convincingly. Your explanation should be complete and make sense on its own, without relying on the reader's legal knowledge to fill in the gaps. Write as if your audience is a lawyer who knows little about the specific area of law you are discussing. This means avoiding unnecessary statements that a legal professional is already likely to know.
When discussing the facts of the case, avoid simply repeating the facts as presented in the question. Only include facts that are relevant to identifying the legal issue and supporting your analysis. Do not assume facts that are not given, and refrain from speculating about what might have happened if the facts were different, unless specifically prompted by the question. For example, the question may ask, "Would your answer be different if...??".
If the legal position is unclear, explain the nature of the uncertainty and suggest possible resolutions, including your own view of the most likely approach a court would take. It is appropriate to argue by analogy and policy in such cases, but be careful not to base your answer solely on policy while ignoring the law. This type of answer, often referred to as "layman's law," should be avoided as it is likely to result in a failing grade.
Finally, when concluding your answer, avoid simply restating the facts or providing a general summary of contract law principles. Instead, summarise the outcomes for the parties involved, but only if you have not already done so in your discussion of each issue. Alternatively, you can conclude by providing a broader perspective that ties all the issues together.
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Explain the law fully
When answering a contract law exam question, it is important to remember that most professors are not looking for a "right" or "wrong" answer, but rather your ability to apply the law to the facts and make a good case for your argument. Here are some tips to help you explain the law fully:
Understand the Facts
Start by reading and understanding the facts of the case. Identify the key issues and accept the facts as true, even if they seem unlikely. Do not assume any facts that are not given, and refrain from speculating on what could have been. The facts will guide you in identifying the relevant legal issues and determining the order in which you address them.
Focus on the Specific Issue
Avoid providing a general summary of contract law principles. Instead, focus on the specific issue raised in the question. Imagine that the person you are advising is sitting in front of you, paying for your time and advice. This will help you tailor your answer to their needs and address only the relevant law.
Organise Your Answer
Mentally highlight different sections of the question to help you structure your response. Break down the exam question into these sections and jot down notes about the facts and their relevance to your answer. Present your points in a coherent and logical manner, avoiding "jumping around" between issues.
Address Uncertainties
If the legal position is unclear, explain the nature of the uncertainty and suggest ways it could be resolved, including your own view of the likely approach a court would take. Argue by analogy and policy, but ensure your answer is based on the law and not purely on policy. Assess what the likely decision would be, recognising that there may be no definitive answer due to uncertainties in applying the law or insufficient factual information.
Provide a Comprehensive Explanation
Ensure your explanation of the law is comprehensive and covers all relevant aspects. For example, under the topic of "obligation," consider whether the contract is bilateral or unilateral. Address the elements that constitute a binding contract, such as offer, acceptance, consideration, and the intention to create legal relations.
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Frequently asked questions
All contract disputes can be categorised as either a dispute about the existence of a contract or a dispute about the substantive terms of a contract. Figure out which category the dispute falls under and this will help you identify which questions need to be asked.
Avoid making simple and obvious statements that add nothing to your answer. Only repeat the facts of the problem if you are using them to identify the basis for your identification of the legal issue.
Explain the nature of the uncertainty and suggest ways in which it could be resolved, including your own view of the most likely approach to be taken by a court. You can argue by analogy and policy but do not produce an answer that is based purely on policy and ignores the law.
Do not assume facts that are not given and do not ponder what the position would have been if the facts were different, unless the question asks you to do so. Let the facts guide you in identifying the relevant legal issues.
You must fully explain the law in a way that makes sense on its own and does not rely on the reader's legal knowledge. Write as if your work is intended for a lawyer who knows little about the area of law in question.
