Principles of Contract Law

Play an AI-generated podcast conversation about this lesson

What principle of contract law emphasizes the idea that each individual should be allowed to make their own choices?

Freedom of contract (correct)

Binding force

Contractual fairness

The absence of formalities

Why is it challenging to prioritize one principle over another in contract law?

Because principles are self-evident

Because principles are never without exceptions

Because principles are broad

Because principles can contradict each other (correct)

Which principle of contract law allows a person to conclude a contract on whatever terms they see fit?

Contractual fairness

Freedom of contract (correct)

The absence of formalities

Binding force

Why does the law presume that a party will not choose unfavorable contract terms?

Because parties are best able to decide in their interest Signup and view all the answers

Which of the following is NOT considered one of the principles governing contract law as mentioned in the text?

Equitable distribution Signup and view all the answers

What aspect makes it impossible for freedom of contract principle to be applied universally?

Broadness of principles Signup and view all the answers

How does common law differ from civil law in terms of judges' decision-making?

Common law judges openly discuss the reasoning behind their decisions. Signup and view all the answers

What distinguishes Islamic contract law from secular contract laws regarding the types of agreements allowed?

Islamic law prohibits contracts related to pork, gambling, and prostitution. Signup and view all the answers

Which aspect characterizes Islamic finance as an alternative to claiming interest on loans?

Islamic finance offers a joint venture like musharaka. Signup and view all the answers

In what way does common law differ from Islamic contract law in terms of discussing policy considerations?

Common law judges do not discuss policy considerations openly. Signup and view all the answers

What is a key factor that distinguishes Islamic contract law from secular contract laws?

The requirement for contracts to be halal under Islamic law. Signup and view all the answers

How do common law judges approach the notion of a single correct outcome compared to Islamic contract law?

Common law judges reflect skepticism towards a single correct outcome, unlike Islamic contract law. Signup and view all the answers

What rule does English law speak of regarding the acceptance of an offer?

Mirror image rule Signup and view all the answers

In what form does the acceptance of an offer usually take place?

In writing or orally Signup and view all the answers

What happens if an offeree sends an e-mail containing acceptance instead of following the specified method?

The acceptance is valid Signup and view all the answers

What is the consequence if the acceptance does not mirror the offer according to the 'mirror image' rule?

A new contract is formed Signup and view all the answers

What are the requirements for an acceptance to conclude a contract?

Must unconditionally agree with offer terms Signup and view all the answers

If an offer specifies a method of acceptance, what should the offeree do?

Comply with the specified method of acceptance Signup and view all the answers

What happens if the offer contains a time period within which it is to be accepted?

The offer automatically lapses if not accepted within the specified time period. Signup and view all the answers

When does an offer become revocable?

Before acceptance. Signup and view all the answers

What is the consequence of an abusive revocation of an offer?

The offeror must compensate the damage suffered by the offeree. Signup and view all the answers

Under what circumstances does an offer lapse?

If the offeree fails to accept within a specified time period. Signup and view all the answers

What happens when an offer is rejected?

The offeree must make a fresh offer. Signup and view all the answers

Why does the law provide rules on when an offer ceases to exist?

To ensure that commercial intercourse is not disrupted. Signup and view all the answers

What is the primary rationale underlying the supplementary duties that arise under a contract due to good faith?

The parties are in the same boat when they conclude a contract, calling for reasonable behavior from them both. Signup and view all the answers

Which of the following is NOT mentioned as a type of supplementary duty that can arise from good faith under a contract?

Duty of competition Signup and view all the answers

What is the primary function of the principle of good faith in the interpretation of contractual terms?

To require the parties to give a meaning to the contractual terms that fits their common goal. Signup and view all the answers

What is described as the 'most spectacular application' of the good faith principle in contracts?

Allowing a party to escape from a binding contract. Signup and view all the answers

Under what circumstances will a court intervene to restrict a party's contractual rights on the basis of good faith?

The court will only intervene in 'extreme cases' where it would be 'unacceptable' for a party to invoke its rights. Signup and view all the answers

What is described as an 'obligation' that arises from good faith in contracts according to the text?

The obligation to protect the other party and help them carry out the contract. Signup and view all the answers