FLK1 · SQE1 module

Contract Law

Contract is one of the most heavily tested FLK1 subjects, and one of the most contested online, which makes accuracy the differentiator rather than volume.

Formation questions (offer, acceptance, consideration, intention) are the most common single best answer pattern, followed by terms, misrepresentation and remedies.

What this module covers

Every section of Contract Law, in the order the course teaches them. This is the whole syllabus for the module, not a selection. Open a section to read the topics inside it.

  1. Formation: Requirements for a Contract2 topics
    • The elements of a binding contract
    • Formalities: writing and deeds
  2. Offer and Invitation to Treat5 topics
    • What counts as an offer
    • Invitations to treat
    • Unilateral offers
    • Auctions and tenders
    • Cross offers
  3. Termination of Offer6 topics
    • Revocation before acceptance
    • Revoking a unilateral offer
    • Rejection and counteroffer
    • Lapse of an offer
    • Termination by operation of law
    • Rejecting a collateral option
  4. Acceptance, the Postal Rule and Battle of the Forms9 topics
    • The mirror image rule
    • The postal rule
    • Battle of the forms and the last shot
    • An alternative method of acceptance
    • Beginning performance under either type of offer
    • A carelessly addressed acceptance
    • Prevail clauses
    • A posted rejection overtaken by acceptance
    • Notifying the start of performance
  5. Intention to Create Legal Relations1 topic
    • The domestic and commercial presumptions
  6. Capacity3 topics
    • Minors
    • Mental capacity and intoxication
    • Capacity of a company
  7. Consideration7 topics
    • What consideration is
    • Consideration must move from the promisee
    • Sufficient but not adequate
    • Performance of an existing duty
    • Past consideration
    • Part payment of a debt
    • Promissory estoppel
  8. Privity of Contract and Third-Party Rights4 topics
    • The doctrine of privity
    • Enforcement under the 1999 Act
    • Exclusions and variation under that Act
    • Common law devices avoiding privity
  9. Terms vs Representations; Certainty2 topics
    • Term or mere representation
    • Certainty and agreements to agree
  10. Conditions, Warranties and Innominate Terms3 topics
    • Conditions and warranties
    • Innominate terms
    • When time is of the essence
  11. Express Terms, the Parol Evidence Rule and Implied Terms5 topics
    • Notice of terms and the parol evidence rule
    • Terms implied by the courts
    • Implied terms under the Sale of Goods Act 1979
    • Implied terms under the Supply of Goods and Services Act 1982
    • Implied terms under the Consumer Rights Act 2015
  12. Exclusion Clauses: Incorporation, Construction and Statute5 topics
    • The three issues for any exclusion clause
    • Methods of incorporation
    • Construction contra proferentem
    • The Unfair Contract Terms Act 1977
    • Unfair terms under the Consumer Rights Act 2015
  13. Mistake4 topics
    • When mistake makes a contract void
    • Common, mutual and unilateral mistake
    • Mistaken identity, non est factum and rectification
    • Rectifying an irrationally worded document
  14. Duress and Undue Influence3 topics
    • Duress and illegitimate pressure
    • The classes of undue influence
    • Relationships of presumed influence
  15. Illegality and Public Policy; Restraint of Trade3 topics
    • Effect of illegality on enforcement
    • Restraint of trade and reasonableness
    • Severance and the blue pencil test
  16. Misrepresentation5 topics
    • What makes a misrepresentation actionable
    • The types of misrepresentation
    • Remedies for misrepresentation
    • Bars to rescission
    • Excluding liability for misrepresentation
  17. Discharge: Agreement, Variation, Performance and Breach3 topics
    • Discharge and variation by agreement
    • The entire obligations rule
    • Actual and anticipatory breach
  18. Frustration5 topics
    • Requirements for frustration
    • What is not frustration
    • Effect of frustration and the 1943 Act
    • Force majeure clauses
    • Destruction of a building after exchange
  19. Remedies: Damages7 topics
    • The compensatory measure
    • Remoteness and its two limbs
    • Causation and contributory negligence
    • Mitigation and the date of assessment
    • Damages under the Sale of Goods Act 1979
    • Liquidated damages and penalty clauses
    • Indemnities, secondary promises and debt claims
  20. Equitable, Restitutionary and Consumer Remedies5 topics
    • Specific performance
    • Injunctions
    • Equitable defences
    • Restitution and quantum meruit
    • Consumer remedies under the Consumer Rights Act 2015
  21. Limitation of Actions; Void vs Voidable Contracts2 topics
    • Limitation periods in contract
    • Void and voidable contracts compared

A real question from this module

Answer it before you decide

FLK1 · Contract Law

Question

A retailer advertises that it will pay £50 to any customer who buys its multivitamin, takes it daily for three months as directed, and still catches a cold, adding that £5,000 has been placed in a separate account to meet valid claims. A customer buys the product, follows the instructions for three months, still catches a cold, and claims the £50 without ever contacting the retailer beforehand. Which of the following best describes the customer’s position?

Choose the best answer

Answer B

An advertisement can be a unilateral offer to the world, capable of acceptance by anyone who performs the stipulated act, without any need to communicate acceptance in advance. Evidence of a genuine intention to be bound, such as money set aside to meet claims, displaces the argument that the advertisement was mere sales puff. Performing the stated act, buying and using the product as directed, is itself both the acceptance and the consideration, so no separate confirmation from the retailer is required.

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256.

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